21.—(1) The Authority shall establish a Currency Fund which shall be maintained and managed by the Authority in the manner prescribed in this Act.
[11/82; 3/91; 25/2002]
(2) There shall be paid into the Currency Fund —
(a)
all gold, silver and foreign currencies bought by the Authority under section 16; and
(b)
the proceeds of any transactions under subsection (6)(b), less all expenses incurred in connection therewith.
[11/82]
(3) The Authority may charge on the Currency Fund any expense properly incurred by or on behalf of the Authority in connection with the execution of its functions under this Act, including expenses relating to —
(a)
the investment of the Currency Fund;
(b)
the issue and demonetisation of currency notes and coins and the transaction of any business relating to such currency; and
(c)
the protection of currency notes and coins against forgery or counterfeiting.
(4) Subject to this Act, the Currency Fund shall not be applied for any other purpose.
[11/82; 3/91]
(5) The Authority shall maintain adequate liquidity in the Currency Fund to meet all demands under normal market conditions.
[47/98]
(6) Notwithstanding anything in subsections (1) to (4), the Authority may —
(a)
use any coin held for the account of the Currency Fund for the purpose of having it reminted into current coin; and
(b)
sell any coin held for the account of the Currency Fund.
[3/91; 47/98; 25/2002]
(7) The value of the Currency Fund and its assets for any purpose of this Act shall be determined by such method as the Authority may from time to time adopt.
[11/82; 3/91; 25/2002]
(8) If at any time the value of the Currency Fund determined by the Authority under subsection (7) exceeds 100% of the face value of the Authority’s currency notes and coins then in circulation, the Authority may direct that the whole or part of such excess be transferred from the Currency Fund to the other funds of the Authority.
[25/2002]
(9) If at any time the face value of the Authority’s currency notes and coins in circulation exceeds the value of the Currency Fund, the deficiency shall be made up from the other funds of the Authority and, if such funds are insufficient, the balance of the deficiency shall be charged on and paid out of the Consolidated Fund.
[25/2002]
(10) In preparing the financial statements relating to the Currency Fund, the Authority may comply with accounting standards to the extent that it is, in the opinion of the Authority, appropriate to do so, having regard to the objects and functions of the Authority under this Act or the Monetary Authority of Singapore Act (Cap. 186).