Exchange Equalisation Account
Encyclopedia
The Exchange Equalisation Account (EEA) is the fund of Her Majesty's Treasury in the UK holding the country's reserves of foreign currencies, gold, and Special Drawing Rights
. It can be used to manage the value of the pound sterling
on international markets.
The EEA was established by Neville Chamberlain
's budget of 19 April 1932 following the pound's exit from the gold exchange standard
the previous September.
The Exchange Stabilization Fund
is a similar fund operated by the US Treasury
since 1934. It was created as a response to the EEA.
Special Drawing Rights
Special Drawing Rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund . Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged...
. It can be used to manage the value of the pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
on international markets.
The EEA was established by Neville Chamberlain
Neville Chamberlain
Arthur Neville Chamberlain FRS was a British Conservative politician who served as Prime Minister of the United Kingdom from May 1937 to May 1940. Chamberlain is best known for his appeasement foreign policy, and in particular for his signing of the Munich Agreement in 1938, conceding the...
's budget of 19 April 1932 following the pound's exit from the gold exchange standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
the previous September.
The Exchange Stabilization Fund
Exchange Stabilization Fund
The Exchange Stabilization Fund is an emergency reserve fund of the United States Treasury Department, normally used for foreign exchange intervention...
is a similar fund operated by the US Treasury
United States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
since 1934. It was created as a response to the EEA.
External links
- Exchange Equalisation Accounts index at HM Treasury website