Explanatory note

Section 2 of the Currency Act 1983 provides that the amount of the Bank of England’s fiduciary note issue is not to exceed £13,500 million or the limit from time to time specified in a direction given by the Treasury. In the normal course, the limit specified in any such direction is not to exceed by more than 25 per cent the limit which was in force at the beginning of the period of two years ending with the day on which the direction is given. By this Order, the Treasury direct that the restriction on the size of any increase in the limit is not to apply for the period of six months beginning with the day on which the Order is made.