Reserve Bank of Australia Annual Report – 1977 Financial Statements Note 7 Transfers in reduction of unfunded adjustments arising from fluctuations in exchange rates

	Central Banking Business		Note Issue Department		Total
	1977 $'000	1976 $'000	1977 $'000	1976 $'000	1977 $'000	1976 $'000
Transfers from:
Reserves for contingencies and general purposes	4,937	26,464	32,535	38,331	37,472	64,795
Exchange valuation gains (see Note 8)	28,613	48,036	57,754	78,424	86,367	126,460
	33,550	74,500	90,289	116,755	123,839	191,255

During 1976/77, net valuation gains arising from fluctuations in exchange rates (see Note 8) totalled $86 million ($126 million in 1975/76); these gains were excluded from profit and loss accounts and passed directly to exchange valuation adjustment accounts as a deduction from past exchange losses. The exchange valuation adjustment accounts were also reduced during 1976/77 by transfers totalling $37 million ($65 million in 1975/76) from reserves for contingencies and general purposes of Central Banking Business and Note Issue Department, including substantial amounts allocated from current earnings.