The Federal Reserve Bank of New York

THE FEDERAL RESERVE BANK OF NEW YORK

This institution acts as agent for all the Federal Reserve banks in dealing with foreign central banks and governments. It is the correspondent of all the leading central banks of the world and at times also acts as fiscal agent for foreign governments. All international transactions of the individual Federal Reserve banks are under the direct control of the Board of Governors of the Federal Reserve System.

The principal international transactions of the Federal Reserve Bank of New York, both for its own account as well as for the other Reserve banks, may be summarized as follows: It receives deposits from foreign central banks and governments and from the International Monetary Fund and the International Bank for Reconstruction and Development, and may maintain deposits with other central banks.

It provides security custody accounts and earmarks gold for foreign central banks and governments and international institutions. It also buys for them bankers' acceptances and United States Government securities. The Bank buys dollar acceptances arising out of international transactions and, acting as agent for all Federal Reserve banks, makes loans to foreign central banks secured by gold. It can also buy acceptances stated in foreign currencies that have been endorsed by foreign central banks in order to provide the latter with dollar funds. It acts as agent of the Treasury in its foreign exchange operations and for all other governmental agencies engaged in international operations.

While the powers of the Federal Reserve banks are prescribed by law and are not as broad and discretionary as those of the Bank of England, they are sufficient to enable the Federal Reserve Bank of New York to play a key role in international finance.