The Exchange Equalisation Account (EEA) is a fund of

His Majesty's Treasury His Majesty's Treasury (HM Treasury), occasionally referred to as the Exchequer, or more informally the Treasury, is a department of His Majesty's Government responsible for developing and executing the government's public finance policy and ec ...

in the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

. It holds the country's the

special drawing rights Special drawing rights (SDRs, code ) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). SDRs are units of account for the IMF, and not a currency ''per se''. They represent a claim ...

(SDR) held at the

International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster gl ...

as well as reserves of foreign currencies and gold. It was set up to provide funding which if necessary can be used to manage the exchange value of pound sterling on international markets. The EEA was established by

Neville Chamberlain Arthur Neville Chamberlain (; 18 March 18699 November 1940) was a British politician of the Conservative Party who served as Prime Minister of the United Kingdom from May 1937 to May 1940. He is best known for his foreign policy of appeasem ...

's budget of 19 April 1932 following the pound's exit from the

gold exchange standard A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the la ...

the previous September. The

Exchange Stabilization Fund The Exchange Stabilization Fund (ESF) is an emergency reserve fund of the United States Treasury Department, normally used for foreign exchange intervention. This arrangement (as opposed to having the central bank intervene directly) allows the US ...

is a similar fund operated by the

US Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...

since 1934. It was created as a response to the EEA.

References

;General
''JMK and the Fourth Grand Monetary Discussion''
by Geoff Tily (2005) *

' by Anna J. Schwartz

External links

at HM Treasury website HM Treasury Gold standard {{finance-stub

See also

References

External links