21.—(1) The Board shall establish a Currency Fund (referred to in this Act as the Fund) which shall be maintained and managed by the Board in the manner prescribed in this Act.
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(2) The Board may, with the approval of the President, appoint any person to manage the Fund on its behalf in the manner prescribed in this Act.
(3) There shall be paid into the Fund —
(a)
all gold, silver and foreign currencies bought by the Board pursuant to section 16; and
(b)
the proceeds of any transactions under subsection (7)(c), less all expenses incurred in connection therewith.
(4) Subject to this Act, the Fund shall not be applied for any other purpose.
(5) A portion of the Fund shall be held in liquid form and such portion may be determined and varied from time to time by the Board, except that at no time shall less than 30% of the Fund be so retained without the unanimous approval of all members of the Board.
(6) The liquid portion of the Fund held in accordance with subsection (5) shall be held in all or any of the following forms:
(a)
gold and silver in any form;
(b)
sterling and other foreign exchange in the form of —
(i)
demand or time deposits, maturing within two years, with the Board’s agents or correspondents abroad;
(ii)
bank balances and money at call;
(iii)
Treasury Bills;
(iv)
notes or coins;
(c)
securities, maturing within two years, of or guaranteed by foreign governments or international financial institutions.
(7) Notwithstanding anything in subsections (1) to (6), the Board may —
(a)
use any coin held for the account of the Fund for the purpose of having it reminted into current coin;
(b)
pay from the Fund the cost of the purchase of metal to be minted into current coin; and
(c)
sell any coin held for the account of the Fund.
(8) The value of the Fund and its assets for any purpose of this Act shall be determined by such method as the Board may, with the approval of the President, from time to time adopt.
(9) Any method of valuation adopted by the Board pursuant to subsection (8) shall be published in the Gazette.