With regard to overseas payment or al of funds, the related provisions of the state on foreign exchange control shall be applicable.

a Private flows include those identified as workers' remittances and other private remittances .

6 Defined as net resource flows minus the interest payments on long term debt and profit remittances on account of FDI.

The Exchange Fund was mainly used for supporting Hong Kong dollars.

Alternative remittance systems that transfer money or other assets using conduits other than formal financial institutions can similarly be an obstacle to combating money laundering.

(c) Foreign exchange transactions, inter bank payment systems, transfer of security rights and transfer of economic assets

Foreign direct investment (FDI) and portfolio investments amounted to only 9.9 per cent and 2.1 per cent, respectively, of total net resource flows to the region, while FDI profit remittances slightly exceeded FDI inflows.

The gap arising from the foreign exchange conversion of a sellable cash financial asset in any foreign currency shall be recorded into the profits and losses of the current period.

The external deficit of the United States is financed mainly by Central Banks that invest their foreign exchange reserves in dollar assets, for which euro denominated assets represent a serious alternative.

High transaction costs reduce the funds received by recipient families and deter the use of formal channels for remittances, keeping these funds outside the formal financial system.

Remittances have become the second largest source of foreign exchange for developing countries, following foreign direct investment (FDI).

(d) Conducting studies on member States' policies on growth, economic reforms, domestic resource mobilization, international financial flows, external debt and exchange rate management

(b) By means of an electronic transfer of funds or by cheque.

There are limits to outward investment, lack of insurance for outward investment, and exchange rate controls.

Local bond markets provide alternative sources of financing for companies and Governments, which avoid exchange rate risks inherent to foreign financing.

Although the turbulence in global financial markets continued, the Hong Kong Monetary Authority said on Monday that the investment income of the Exchange Fund in the third quarter of this year fell by 97 annually, and it was better than that in the previous quarter, since overseas stocks rose and foreign exchange losses obviously narrowed under the China U.S. trade war.

For developing countries as a whole, workers' remittances are the second largest source of private financial inflows after foreign direct investment.

The foreign exchange rate system was freely floating and the country benefited from stable real exchange rates, funded by fiscal and monetary policy and the size of the international reserves.

5. At the same time, policy makers had expressed concern at the real exchange rate appreciation produced by capital inflows and its impact on the competitiveness of the export sector, and doubts about the sustainability of the inflows.

9. The Treasury is responsible for the establishment, maintenance and closure of bank accounts, including changes in signatory panels for short term investments of funds for effecting payments, whether by cheque or wire transfer for issuance and or processing of cash receipt vouchers and cash vouchers and competitive purchase of foreign exchange.

Extrabudgetary Funds

Annex III

At the same time, suspension of payments will lower the immediate foreign exchange requirements and reduce considerably the size of a rescue package.

The aggregate summary of the RFA accounts is shown in table 12.

The huge expenditure on cereal imports was putting great pressure on foreign exchange reserves and diverting scarce resources from vital development projects including those aimed at increasing cereal production.

Remittance flows have become an increasing source of foreign exchange for many developing countries and a potential source of development finance.

Mobilization of external resources,

3 Remittances play a crucial role in the economy of recipient countries, since they provide for a stable source of financing, bring foreign exchange with no liabilities and complement national savings, thereby constituting an important basis for capital accumulation.

Furthermore, China should be allowed to convert part of its foreign exchange reserves into assets denominated in the International Monetary Fund s special drawing rights (SDRs). Of course, China should not rule out the possibility of adjusting the composition of its foreign exchange reserves to mimic the composition of the SDR.

H. Decision XVII __ Fixed exchange rate mechanism for the replenishment of the Multilateral Fund

(2)The profits and losses arising from the change in the fair value of a sellable financial asset shall be included directly in the owner s equity with the exception of impairment losses and the gap arising from foreign exchange conversion of cash financial assets in any foreign currency, and when the said financial asset is stopped from recognition and is transferred out, it shall be recorded into the profits and losses of the current period.

Countries' liberal foreign exchange has also contributed to OFDI by developing country firms.

The treasury information systems would address automation of bank reconciliations, cash forecasting, foreign exchange revaluation and cash and investment accounting.

Extrabudgetary funding for 1998

Shortage in extrabudgetary funding

Amendments were also made to the Guidance Notes to require financial service providers to obtain additional information on the originator of a wire transfer, and that effective procedures should be in place to identify wire transfers lacking complete information.

The motivation for minimizing foreign exchange costs also found its practical form in not permitting cash remittances for OFDI, except for deserving cases.

Copper and other metal exports account for about 75 per cent of the country's foreign exchange earnings.

Funds transmitted to non governmental organizations are initially placed in the bank's blocked account .

No drastic measures would be required, but there was a need for adjustments to cover costs and manage unpredictable

How can the need for large foreign exchange reserves experienced by emerging market developing countries to provide self insurance against volatility in international trade and financial flows, and the cost of those reserves, be reduced?

6151 External foreign exchange

To make matters even worse, emerging markets are deprived of the one tool that the advanced countries have employed in order to stem their own financial panics domestic fiscal resources or domestic liquidity. Emerging markets need foreign currency and, therefore, external support.

The repatriation of funds was moreover essential to the economic recovery of countries which, on the termination of a conflict, were bereft of resources.

Fostering the channelling of remittances through financial institutions ( bancarization').