Foreign exchange holdings of the banks.
Section 80
SEC. 80. Foreign exchange holdings of the banks.—In order that the Central Bank may at all times have foreign exchange resources sufficient to enable it to maintain the international stability and convertibility of the peso, or in order to promote the domestic investment of bank resources, the Monetary Board may require the banks to sell the Central Bank all or part of their surplus holdings of foreign exchange. Such transfers may be required for all foreign currencies or for only certain of such currencies, according to the decision of the Monetary Board. The Transfers shall be made at the rates established under the Provisions of section 76 of this Act. For the purposes of this Act, surplus holdings of any foreign currency shall be defined as the amount by which a bank's assets in the currency exceed the sum of the working balance required to accommodate normal short run fluctuations between the bank's sales and purchases of said currency and the total liabilities of the bank in i the currency: Provided, however, That in calculating surplus holdings in any given currency, a bank may, at the discretion of the Monetary Board, subtract from its net assets in that currency an amount equal to any net liabilities of the bank in other currencies into which said currency is freely convertible. The Monetary Board may stipulate' that the working balance to which reference is made in the preceding paragraph shall not exceed a specified proportion of the average daily sales of the respective currency by the bank to entities other than the Central Bank during the preceding month. Any proportion thus established by the Monetary Board, and any requirement to transfer foreign exchange to the Central Bank, shall be applied to all banks alike and without discrimination.