Assets to cover currency in circulation

(1) The Bank shall at all times hold assets of an amount in value sufficient to cover fully the value of the total amount of its notes and coins for the time being in circulation. (2) The Bank shall maintain at all times a reserve of external assets of not less than forty per cent of the aggregate amount of notes and coins in circulation and of the Bank’s liabilities to customers in respect of its sight and time deposits. (3) The reserve of external assets shall consist of all or any of the following– (a) gold in any form and at such a valuation as may be determined by the Bank; (b) foreign exchange in the form of, (i) demand or time deposits with foreign central banks or with the Bank’s agents or correspondents abroad; (ii) documents and instruments customarily used for the making of payments or transfers in international transactions; (iii) notes and coins; (c) securities of, or securities guaranteed by, foreign governments or international financial 23 (d) Belize’s drawing facility equivalent to its reserve position in the International Monetary Fund; and (e) Belize’s holdings of special drawing rights in the International Monetary Fund. (4) The House of Representatives may by resolution vary by not more than five per cent on any occasion the percentage referred to in sub-section (2). Such resolution shall not become effective until the date of its publication in the Gazette.