Exchange Fund
December 6,1935
[Note] (Cap. 66)
To make provision for the establishment and management of an exchange fund and as to the employment of its assets in Hong Kong.
(Amended 20 of 1948 s. 4; 17 of 1979 s. 2) [6 December 1935]
1. Short title
This Ordinance may be cited as the Exchange Fund Ordinance.
(Amended 20 of 1948s. 4)
2. Interpretation
In this Ordinance, unless the context otherwise requires-- "bank notes lawfully issued" means notes issued in the Colony by any of the note-issuing banks in accordance with the provisions of The Hongkong and Shanghai Banking Corporation Limited Ordinance
(Cap. 70) and the charter of incorporation of Standard Chartered Bank or any supplemental charter of that bank, or issued in accordance with the above-mentioned provisions as modified by this Ordinance, or the Bank Notes Issue Ordinance (Cap. 65); (Amended 20 of 1948 s. 4; 54 of 1956 s. 3; 7 of 1978 s. 3; 76 of 1984 s. 2; L. N. 333 of 1989) "foreign exchange" means all currencies other than Hong Kong currency and includes sterling and other Commonwealth currencies; (Amended 20 of 1948 s. 4) "Monetary Authority" means the Monetary Authority appointed under section 5A; (Added 82 of 1992 s. 2) "note-issuing bank" means Standard Chartered Bank, and The Hongkong and Shanghai Banking Corporation Limited. (Amended 54 of 1956 s. 3; 14 of 1958 s. 3; 7 of 1978 s. 3; 76 of 1984 s. 2; L. N. 333 of 1989)
3. Establishment control and management of Exchange Fund
(1) There shall be established a fund to be called "the Exchange Fund" which shall be under the control of the Financial Secretary and shall be used primarily for such purposes as the Financial Secretary thinks fit affecting, either directly or indirectly the exchange value of the currency of Hong Kong and for other purposes incidental thereto. The control of the Financial Secretary shall be exercised in consultation with an Exchange Fund Advisory Committee of which the Financial Secretary shall be chairman and of which the other members shall be appointed by the Governor. (Amended 12 of 1946 s. 2; 26 of 1983 s. 2; 82 of 1992 s. 3)
(1A) In addition to using the Fund for its primary purpose, the Financial Secretary may, with a view to maintaining Hong Kong as an international financial centre, use the Fund as he thinks fit to maintain the stability and the integrity of the monetary and financial systems of Hong Kong.
(Added 82 of 1992 s.
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