Reserve Bank of Australia Annual Report – 1981 The Bank's Accounts

Commentary

There was a reduction of $127 million to $11,880 million over 1980/81 in aggregate balance sheet totals. Factors influencing the main items in the balance sheets have been mentioned in earlier parts of the Report.

The sharp fall in gold prices over the year resulted in substantial reductions in the book value of the Bank's gold holdings and in its reserves; these reductions partly reversed the large increases during the previous year. Other major movements in balance sheet items included further increases in Australian notes on issue and Statutory Reserve Deposits of the trading banks, a substantial increase in holdings of foreign exchange, and reductions in deposits of savings banks and of overseas governments and institutions. There was also a reduction in holdings of Australian Government securities and an increase in liabilities to governments.

Total operating earnings rose by $110 million to $384 million. The increase resulted mainly from increased earnings on foreign currency investments and Australian Government securities and from reductions in interest paid on deposit liabilities. Net gains on deliveries of forward exchange contracts and net deficits from revaluations of foreign currency holdings and from dealings in Australian Government securities were taken to reserves.

The aggregate net profits of $263.6 million were appropriated $259.9 million to the Commonwealth, $1.85 million to the Rural Credits Department Reserve Fund and $1.85 million to the Rural Credits Development Fund.