(a) Any Federal Reserve Bank,
with the consent of the Board, may open and maintain accounts payable
in foreign currencies with such foreign banks as may be designated
by the Board.
(b) Notwithstanding other provisions
of this part,
* any officer or other representative
of a Federal Reserve Bank which maintains an account with a foreign
bank may conduct such negotiations and enter into such agreements,
contracts, or understandings with such foreign bank as may be authorized
or directed by the Federal Open Market Committee in order to effectuate
the conduct of open market transactions of the Federal Reserve Banks
incident to the opening, maintenance, operation, increase, reduction,
or discontinuance of such account; and, in any such case, such negotiations,
agreements, contracts, or understandings shall be subject to such
authorizations, directions, regulations, and limitations as may be
prescribed by, or pursuant to authority of, the Federal Open Market
Committee.
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(c) Any Federal Reserve Bank may, when authorized
or directed so to do by, or under the authority of, the Federal Open
Market Committee, carry on or conduct, through any other Federal Reserve
Bank which maintains an account with a foreign bank, any open market
transactions authorized by section 14 of the Federal Reserve Act.
Transactions authorized by section 14 which are not open market transactions
may be carried on or conducted through such other Federal Reserve
Bank only with the approval of the Board.
(d)
Notwithstanding other provisions of this part, reports with respect
to any accounts opened and maintained, and negotiations, agreements,
contracts, and understandings entered into, pursuant to this section shall be
made to the Board at least quarterly, and more frequently if so requested
by the Board, by a duly authorized officer of the Federal Reserve
Bank involved.
