Plain language law

New Zealand law explained for everyone

Reserve Bank of New Zealand Act 2021

Central bank functions - Foreign exchange - Foreign exchange gains and losses

140: Foreign exchange gains and losses

You could also call this:

"What happens when the Reserve Bank makes money or loses money from foreign exchange"

Illustration for Reserve Bank of New Zealand Act 2021

You deal with foreign exchange gains and losses. When the Reserve Bank of New Zealand makes a gain from foreign exchange under section 134, it must pay this gain into a Crown Bank Account. If the Bank makes a loss from foreign exchange under section 134, the Minister pays the loss back to the Bank from a Crown Bank Account. The Bank gets help with losses from the Minister without needing extra money approved.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287186.

This page was last updated on — View changes

Topics:
Money and consumer rights > TaxesMoney and consumer rights > Banking and loansGovernment and voting > Government departments
Previous

139: Effect of Bank’s notice on duty to comply with Minister’s direction, or

"The Bank's notice can stop it from having to follow the Minister's instructions."

Next

141: Bank must hold and manage foreign reserves in accordance with framework, or

"The Bank must carefully manage New Zealand's foreign money according to a guide."

Part 3Central bank functions
Foreign exchange: Foreign exchange gains and losses

140Foreign exchange gains and losses

  1. The Bank must pay into a Crown Bank Account any exchange gains (whether realised or unrealised) made by the Bank as a result of dealing in foreign exchange under section 134.

  2. The Minister must, without further appropriation, pay to the Bank out of a Crown Bank Account the amount of any exchange losses (whether realised or unrealised) incurred by the Bank as a result of dealing in foreign exchange under section 134.

Compare