Finance Act, 1950

PART VII.

Miscellaneous and General.

The Foreign Exchange Account.

20.—(1) In this section, the expressions “the Minister”, “the Account”, “foreign exchange” and “foreign security” and the words “gold” and “security” have the same meanings respectively as they have in section 49 of the Finance Act, 1941 (No. 14 of 1941).

(2) The Minister may invest any foreign exchange for the time being held for the credit of the Account by placing such exchange on interest-bearing deposit with a banking institution or purchasing securities which have been issued or guaranteed by the government of the country in which such exchange is held.

(3) Income arising from any investment under subsection (2) of this section shall be held for the credit of the Account.

(4) The Minister may, if he thinks proper, pay into the Account any sum received by him in respect of the net proceeds of any sale or disposal of any gold, foreign exchange or foreign security effected on his behalf or by his direction or authority in accordance with any provision made by or under statute.

(5) Each of the references in subsection (10) of section 49 of the Finance Act, 1941 , to the foregoing provisions of that section shall be construed as including a reference to the foregoing provisions of this section.

(6) Subsections (1) to (5) of this section shall be deemed to have come into operation on the establishment of the Account.