Dealing in foreign exchange

(1) The Bank may buy or sell or otherwise deal in foreign exchange in any form. (2) The Bank may hold balances denominated in foreign currencies with foreign central banks or monetary authorities or with the Bank’s agents or correspondents abroad and, in its discretion, may invest such balances in marketable foreign securities. (3) The Bank may act as agent for and accept deposits from– (a) foreign central banks and monetary authorities or foreign banking or financial institutions; (b) foreign governments or agencies of foreign governments; and (c) international financial institutions. (4) The Bank may make arrangements or enter into agreements with any foreign central bank or foreign banking or financial institution to borrow in such manner, at such rates of 24 interest and upon such terms and conditions as it may think fit any foreign currency which the Bank may think it expedient to acquire.