Decisión nº: 000716

In February 1997 the 1971 Fund Executive Committee, noting that the Pound was at the time strong in comparison to the Yen, and recalling Financial Regulation 10.4 allowing the Director to hold assets in the currencies required to pay claims arising out of a specific incident which had been settled or were likely to be settled in the near future, agreed that it was appropriate for the 1971 Fund to purchase Yen to protect the Fund against a strengthening of the Yen versus the Pound. It was stressed, however, that since the 1971 Fund was neither a financial institution nor an investment bank, Yen should be purchased only to provide funds for the payment of claims and not for general investment purposes.