CRD Welcome Package

26.

The Bank may - (a)

buy, sell, or deal in gold coins or bullion or other precious metals;

(b)

buy, sell, or deal in foreign exchange, using for these purposes any of the instruments commonly used by bankers;

(c) (d)

open and maintain accounts abroad;

open and maintain accounts and act as agent or correspondent for foreign central banks, foreign financial institutions, foreign governments, foreign government agencies and institutions and international financial institutions.

27.

The Bank shall deal in connection with the operations enumerated in Article 26 hereof only with the Participating Governments, their boards and agencies, their social security funds and other statutory bodies, local government bodies, foreign central banks, local and foreign financial institutions, foreign governments, foreign government agencies and institutions and international financial institutions. (1) The Bank shall from time to time determine the rates at which it will buy, sell or deal in gold and foreign currencies. (2) The Bank may determine and make public the rates at which gold and foreign currencies may be bought, sold or dealt in by banks and other persons authorised to do so in the territories of the Participating Governments. (3) The Bank may close the foreign exchange markets for the Eastern Caribbean Dollar in the territories of the Participating Governments during a period of not more than two working days if it deems such action to be necessary to prevent disorderly conditions in the foreign exchange markets and considers it to be in the interest of the Participating Governments: Provided that the Bank may request the Council that a reasonable extension of the period of closure be granted, during which the Bank shall proceed to remove the causes of the disorder. (1) The gains arising from any change in the valuation of the Bank’s assets or liabilities in, or denominated in gold, special drawing rights or foreign currencies as a result of alteration of the external value of the Eastern Caribbean Dollar, or of any change in the value of such assets or liabilities relative to the Eastern Caribbean Dollar, shall be credited to a special account entitled “Revaluation Reserve Account” and neither the gains nor the losses arising from any such change shall be included in the computation of the annual profits and losses of the Bank. (2) Any gain arising from changes described in paragraph (1) of this Article during any financial year of the Bank shall be used - (Ad ’91)

28.

29.

28