The Exchange Equalisation Account (EEA) is the account that holds the UK’s reserves of gold, foreign currencies and International Monetary Fund (IMF) Special Drawing Rights (SDRs). It was established in 1932 to provide a fund which could be used for checking undue fluctuations in the exchange value of sterling. Legislation since has extended the possible use of this fund; and under the consolidating Exchange Equalisation Account Act 1979, it may also be used:
- to secure the conservation or disposition in the national interest of making payments abroad; and
- for certain purposes arising out of the UK’s membership of the IMF, including the holding, purchase and sale of SDRs.