Section 24
of Currency and Monetary Order, 2004 ( Formerly Known as Currency Act )
Section 24
(1)
The external assets of the Currency Fund shall consist of all or any of the following and shall at all times be not less than 100 per cent of the face value of the currency issued by the Authority –
(a)
and silver in any form;
Incorporating amendments until S 104/2010
(Cleancopy) NANI/Hj.Afif/Amiriah/Bb/zura_as of 06.05.2019
13
BLUV as at 16th December 2010
(b)
foreign exchange in the form of –
(i)
demand or time deposits;
(ii)
bank balances and money at call;
(iii)
Treasury Bills and short-term Government securities;
(iv)
notes and coins;
(c)
securities, of or guaranteed by, foreign Governments or international financial institutions; and
(d)
any other external investment instruments which the Authority unanimously considers suitable for inclusion.
(2)
The external assets of the Authority net of any external liabilities shall at all times be not less than 100 per cent of the face value of the currency issued by the Authority:
Provided that the percentage may be varied on an unanimous resolution of the Authority, with the approval of His Majesty the Sultan and Yang Di-Pertuan, to that effect.
(3)
The Authority shall not incur external liabilities apart from those to international monetary institutions.
(4)
Liquid assets shall –
(a)
consist of gold, notes and coins, bank balances, money at call with banks and Treasury Bills and short-term Government securities; and
(b)
amount to not less than 30 per cent of the face value of the currency issued by the Authority.
(5)
The securities and other external investment instruments shall –
(a)
be readily marketable; and
(b)
for the purpose of subsection (1), be valued in accordance with the accounting standards adopted by the Authority.