Appendix A: Report to the Board of Governors Concerning Rules and Regulations

International Monetary Fund
Published Date:
September 1946
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September 27, 1946.

My Dear Mr. Chairman:

On behalf of the Executive Director, I am submitting the attached Rules and Regulations adopted September 25, 1946. In accordance with Section 16 of the Bylaws, the Rules and Regulations are subject to review by the Board of Governors at its annual meeting.

As pointed out in the Annual Report, these Rules and Regulations, adopted before operations begin, are necessarily provisional. Modifications and additions will have to be made as new problems are encountered. Such changes will be presented for review at future meetings of the Board of Governors.


[s] Camille Gutt,

Managing Director.

International Monetary Fund Rules and Regulations

A—Scope of Rules and Regulations

A–1. These Rules and Regulations supplement the Fund Agreement and the Bylaws adopted by the Board of Governors. They are not intended to replace any provision of either the Agreement or the Bylaws. The Rules and Regulations attempt to provide such operating rules, procedures, regulations and interpretation as are necessary and desirable to carry out the purposes and powers contained in the Agreement, as supplemented by the Bylaws. If any provision in the Rules and Regulations is found to be in conflict with any provision in the Agreement or in the Bylaws, the Agreement and Bylaws shall prevail and an appropriate amendment should be made to these Rules and Regulations.

A–2. Additions to, and changes of, the Rules and Regulations will be made as experience brings to light new problems or suggests modifications in procedures already adopted.

B—Terms, Definitions, and Symbols Employed in This Document

B–1. Executive Director, except where otherwise specified, shall include the Alternate.

B–2. Executive Board refers to the Executive Directors presided over by the Chairman.

B–3. Chairman, except where otherwise specified, shall refer to the Chairman or Acting Chairman of the Executive Board.

B–4. Agenda ordinarily refers to both the list of items to be considered at a meeting and the supplementary documents pertinent thereto.

B–5. Fund Agreement refers to the Articles of Agreement of the International Monetary Fund and, where the context is clear, Agreement shall also refer to the Articles of Agreement.

B–6. FA refers to the Fund Agreement.

BL refers to the Bylaws of the International Monetary Fund as adopted by the Board of Governors.

RR refers to these Rules and Regulations.

B–7. Executive Session refers to a Meeting of the Executive Directors in which no person is present except the Executive Directors, Managing Director, and, with the approval of the Board granted separately for each Executive Session, the Secretary of the Board.

C—Meetings of the Executive Board


C–1. Meetings of the Executive Directors shall be called by the Chairman as the business of the Fund may require. Except in special circumstances the Chairman shall notify all Executive Directors of meetings at least two work days in advance.

C–2. The Chairman shall call a meeting at the request of any Executive Director.

C–3. Except by consent of the Executive Directors present, meetings shall be open to attendance only by Executive Directors, the Managing Director, the Secretary and such members of the secretariat as the Chairman indicates.

C–4. The Executive Directors shall meet at the principal office of the “Fund unless it is decided that a particular meeting shall be held elsewhere.

C–5. In the absence of the Managing Director, the Executive Director selected, by the Executive Board shall act as chairman. An Executive Director shall retain his right to vote when serving as acting chairman.


C–6. The Agenda for each meeting shall be prepared by the Chairman. The Agenda shall include any item requested by an Executive Director.

C–7. Except in special circumstances the Chairman shall notify Executive Directors of new items on the agenda at least the full working days before their consideration in meetings. Additional advance notice shall be given at the discretion of the Chairman before the consideration of new items of especial importance which may require consultation with members or the return to the seat of the Fund of Executive Directors who are absent.

C–8. Matters not on the agenda for a meeting may be considered at that meeting only by unanimous consent of the Executive Directors present.

C–9. Any item of the agenda for a meeting, consideration of which has not been completed at that meeting, shall, unless the Executive Directors decide otherwise, be automatically included in the agenda of the next meeting.


C–10. The Chairman will ordinarily ascertain the sense of the meeting in lieu of a formal vote. Any Executive Director may require a formal vote to be taken with votes cast as prescribed in Article XII, Section 3 (i).

C–11. There shall be no formal voting in committees and subcommittees. The chairman of the committee or subcommittee shall determine the sense of the meeting (including alternative points of view) which shall be reported.

C–12. No Executive Director may vote at any meeting by proxy or by any other method than in person.


C–13. The working language of the Fund will be English. The discussion, documents, and reports of meetings will ordinarily be in English. Speeches or papers presented in other languages shall be translated into English.


C–14. Under the direction of the Managing Director, the Secretary shall be responsible for the preparation of a summary record of the proceedings of the Executive Board.

C–15. Verbatim records will be taken only if the Chairman, the Executive Board or an Executive Director so requests. In such case, the Secretariat shall be given advance notice of the desire for verbatim recording.

C–16. Draft minutes will be circulated to all Executive Directors as quickly as possible after meetings. Unless corrections are returned to the Secretary within the ensuing work day, the draft minutes will be prepared in final form for approval at the next meeting.

D—Application for Membership and Quotas

D–1. When a country applies for membership in the Fund, and the application is placed before the Executive Board, the Chairman shall announce a reasonable time to be allowed for discussion and preliminary investigation by the Executive Board before a decision is reached to proceed with the formal investigation. If this decision is in the affirmative the Fund may proceed to obtain all relevant information and discuss with the applicant any matters relating to its application. Any Executive Director may request such information to be added to the list requested of the applicant as in his opinion is relevant to the decision to be made. The Executive Board shall then decide whether to submit an application for membership with its views to the Board of Governors for a telegraphic vote or hold the application until the next meeting of the Board of Governors. (FA II–2; BL 21.)

D–2. When a member requests an adjustment of its quota, the Executive Board, after consulting the member, shall submit a written report on the request to the Board of Governors at its next meeting. If the request is for an increase in the quota, and the member is not obligated to pay 25 percent of the increase in gold, the report snail contain a recommendation on the amount to be paid in gold. (FA III–2 and 4.)

D–3. At least one year prior to the time when a review of quotas must be undertaken by the Fund, the Executive Board shall appoint a committee to study the problem and to prepare a written report. (FA III–2.)


E–1. Gold depositories of the Fund shall be established in New York, London, Shanghai, Paris, and Bombay. The gold of the Fund shall be held with the depositories designated by the members in whose territories they are located. A member may pay its gold subscription to the Fund at one or more of the specified gold depositories, within the terms of Article XIII, Section 2. (FA XIII–2.)

E–2. A member shall pay its currency subscription to the Fund at the designated depository. Each member is authorized to substitute in accordance with Article III, Section 5, nonnegotiable, noninterest bearing notes payable to the Fund on demand for that part of the currency holdings of the Fund which exceed 10 per cent of the member's quota, and the depository shall hold such notes for the account of the Fund. Such notes shall not be accepted until the Fund is satisfied that they are in proper form and that their issue has been authorized. (FA III–5.)

E–3. The Executive Board may agree to alter the 10 per cent requirement in the case of any member, should circumstances in the opinion of the Executive Board warrant a different percentage.

E–4. The member is allowed 24 hours in which to deposit the currency necessary to maintain the amount required under E–2 and E–3.

E–5. For purposes of Article III, Section 3, initial gold payments in excess of the minimum shall be accepted on the same basis as the minimum payment.

F—Par Values

F–1. The Fund shall arrange through the fiscal agencies of members that frequent and regular information as to the market rates of members' currencies bought and sold in their territories is made available to the Fund.

F–2. Members shall notify the Fund whether for the settlement of international transactions they, in fact, freely buy and sell gold within the prescribed limits of price and shall notify the fund of any changes in such policy. (FA IV–4 (b).)

F–3. A member desiring to change the par value of its currency shall give the Fund as much notice as the circumstances allow, and shall submit a full and reasoned statement why, in its opinion, such a change is necessary so correct a fundamental disequilibrium. (FA IV–5.)

G—Fund Transactions


G–1. Each member shall designate a fiscal agency for its transactions with the Fund, in accordance with Article V, Section 1, before its subscription becomes due, and may change the agency after notifying the Fund. (FA V–1)

Foreign Exchange

G–2. The Fund shall sell foreign exchange for gold or currency only on an authenticated request from the designated agency, and the agency, in its operations on behalf of the Fund, will act only on instructions in such form as may be agreed upon.

G–3. Requests for the purchase of foreign exchange in accordance with Article V, Section 3, shall be dealt with by the Fund with a delay of two working days from the date of their reception.

G–4. When a member expects to purchase from the Fund, in a single transaction or a series of transactions, an unusually large sum of any other member's currency (unusually large relative to the quota of that other member), the member shall give the Fund as much notice of the proposed transaction or transactions as can reasonably be effected.

H—Exchange Controls, Currency Practices and Agreements

H–1. The Fund shall keep all exchange controls under review and shall consult with members with a view to the progressive removal of exchange restrictions in accordance with the Fund Agreement. (FA XIV–2.)

H–2. If a member complains to the Executive Board that another member is not complying with its obligations concerning exchange controls, discriminatory currency arrangements, or multiple currency practices, the complaint shall give all facts pertinent to an examination. (FA VIIT–2 and 3.)

H–3. Upon receipt of a complaint from a member, the Executive Board shall make arrangements promptly for consultation with the members directly involved.

H–4. All requests by a member under Article VIII, sections 2 and 3, that the Fund approve the imposition of restrictions on the making of payments and transfers for current international transactions, or the use of discriminatory currency arrangements or multiple currency practices, shall be submitted to the Executive Board in writing, with a statement of the reasons for making the request. (FA VIII–2 and 3.)

H–5. The Executive Board shall decide each request for approval expeditiously.

I—Repurchases and Charges

I–1. The first time that a member has to make a gold payment to the Fund it shall deliver gold of designated weight and fineness at least sufficient in value to meet the payment. Any surplus balance of gold shall be held by the Fund under earmark at the disposal of the member and may be used to meet other payments incurred in the future.

I–2. The service charge payable by a member buying the currency of another member in exchange for its own currency shall be paid at the time the transaction is consummated. (FA V–8 (a).)

I–3. Gold due to the Fund may be delivered at any gold depository of the Fund. The Fund may accept gold situated elsewhere and in such cases shall levy an appropriate charge to cover the cost of moving the gold to its nearest gold depository. (FA V–8 (b) and (f).)

I–4. At quarterly intervals the Fund shall notify each member of the charges due to the Fund pursuant to Article V, Section 8 (c) or (d) on the balance of its currency held by the Fund in excess of its quota. These charges shall be paid within ten days after receipt of such notice. (FA V–8 (c) and (d).)

I–5. A member wishing to pay in its own currency part of any charges due shall submit to the Fund a statement giving the necessary justification. (FA V–8 (f).)

I–6. At the end of each financial year of the Fund each member shall furnish to the Fund the data necessary to calculate its repurchase obligations pursuant to Article V, Section 7. All repurchases shall be made within thirty days after the receipt' of notice from the Fund of the amount of its currency to be repurchased by the member and the extent to which payment is to be made in gold and in each convertible currency. (FA V–7 and Schedule B.)

J—Accounts and Reports

J–1. The accounts of the Fund shall be kept in terms of the currencies held by the Fund, and United States dollars on the basis of the established parities. (FA IV–1; B1–20.)

J–2. The accounts of the Fund shall be kept in a manner that will show clearly the nature of each transaction, the position of the Fund, and results of its operations.

J–3. A summary statement of the Fund's transactions and its holdings of gold and currencies of members shall be issued at intervals of three months or less, and a monthly statement of balances shall be sent to all members. (FA XII–7.)

J–4. The Managing Director shall prepare an annual administrative budget for presentation to the Executive Board for approval not later than June 1 of each year. (BL–20.)

J–5. Not later than June 30 of each year, the Managing Director shall present to the Executive Board a summary of the matters which in his opinion should be included in the annual report to the Board of Governors. At least one month before the annual meeting of the Board of Governors, the Managing Director shall submit to the Executive Board for its consideration, a draft of the annual report. (BL–10.)

J–6. At least one month before the annual meeting of the Board of Governors, the audited accounts of the Fund shall be submitted to the Executive Board for its consideration. (BL–20.)

K—Limitation and Ineligibility

K–1. The Managing Director shall report to the Executive Board any case in which it appears to him that a member is not fulfilling its obligations under the Fund Agreement.

K–2. Whenever the Executive Board would be authorized to declare a member ineligible to use the resources of the Fund it may refrain from making the declaration and indicate the circumstances under which, and/or the extent to which, the member may make use of the resources. (FA V–5, VI–1, XV–2 (a))

K–3. When a member has changed the par value of its currency despite the objection of the Fund, in cases where the Fund is entitled to object, the Executive Board may determine the circumstances under which, and the extent to which, a member may use the resources of the Fund.

K–4. Before any member is declared, pursuant to Article XV, Section 2 (a), ineligible to use the resources of the Fund, the matter shall be considered by the Executive Board, who shall inform the member in reasonable time of the complaint against it and allow the member an adequate opportunity for stating its case both orally and in writing. (FA XV–2 (a), BL–22)

K–5. When any member that is ineligible to use the resources of the Fund, or whose use of the resources has been limited, according to K−1 or K−2 above, requests the Executive Board to permit the resumption of exchange transactions with or without special limitations and the Executive Board decides not to permit such resumption, a written report shall be made to the member stating what further action is required before such resumption will be permitted.

L—Capital Transfers

L–1. If there is taking place a large or sustained outflow of capital from a member country:

  • (a) that member or any other member may notify the Fund, presenting such information as it deems necessary, and may request the Fund's views with respect to such capital movement; and

  • (b) the Fund may present to the member or members concerned a report setting forth its views, and may request the member or members to report on the situation within a suitable time.

L–2. Whenever the Fund has requested a member to exercise controls to prevent use of the resources of the Fund to meet a large or sustained outflow of capital, the Fund shall request the member to notify it promptly and in detail of the measures taken. (FA VI–1 (a).)

L–3. Each member shall inform the Fund in detail of the measures it is taking to regulate international capital movements and of changes made in such measures.

L–4. If the Fund is of the opinion that the controls exercised by a member to regulate international capital movements are restrictive of payments for current transactions, or unduly delay transfers of funds in settlement of commitment, the Fund shall, subject to the provisions of Article VII, Section 3 (b) and Article XIV, Section 2, consult with the member on the manner in which the controls are exercised. If, after consultation, the Fund is not satisfied that the controls are exercised in a manner consistent with the Fund Agreement, it shall so inform the member in a written report and request it to modify the controls. (FA VI–3.)

M—Relations with Non-Members

M–1. The Fund may request the cooperation of any member with a view to the application of appropriate measures to prevent transactions with non–members or with persons in their territories, contrary to the provisions of the Agreement or the purposes of the Fund. (FA XI–1 (iii).)

M–2. When the Fund finds that a member or any of its fiscal agencies referred to in Article V, Section 1, engages in any transaction with or cooperates in practices with a non-member or with persons in a non-member's territory, contrary to the provisions of the Agreement or the purposes of the Fund, it shall present to the member a report setting forth its views and may request the cessation or modification of the transactions or practices. (FA XI–1 (i) and (ii).)

M–3. A member shall inform the Fund promptly and in detail of any restrictions which it imposes on exchange transactions with non-members or with persons in their territories. (FA VIII-5 (a) (xi).)

M–4. Any member may notify the Fund of restrictions imposed by a member on exchange transactions with non-members or with persons in their territories which are deemed to prejudice the interests of members and to be contrary to the purposes of the Fund. (FA XI–2.)

M–5. When the Fund finds that the restrictions imposed by a member on exchange transactions with non-members or with persons in their territories are prejudicial to the interests of members and contrary to the purposes of the Fund, it shall present to the member a report setting forth its views and may request the abolition or modification of the restrictions. (FA XI–2.)

N—Staff Regulations


N–1. The employment, classification, promotion and assignment of personnel in the Fund shall be made without discriminating against any person because of sex, race or creed.

N–2. Persons on the staff of the Fund shall be nationals of members of the Fund unless the Executive Board authorizes exceptions in particular cases.

N–3. In the discharge of their functions, the persons on the staff shall owe their duty entirely to the Fund and to no other authority.

N–4. All persons on the staff must avoid any action, and in particular any kind of pronouncement, which may reflect unfavorably upon their position as employees of an international organization, either in their own country or else-where. They should always bear in mind the reserve and tact incumbent upon them by reason of their international functions, and they are required to exercise the utmost discretion in regard to matters of official business. At no time should they in any way use to private advantage information known to them by reason of their official position.

N–5. Except in the course of his official duties or by express authorization of the Managing Director, no person on the staff may, during the term of his appointment of service, publish, cause to be published, or assist in the publication of any book, pamphlet, article, letter, or other document relative to the policies or activities of the Fund or to any national political questions; deliver any speech, lecture, or radio broadcast, or grant any press interview on such policies, activities, or questions; or communicate to any person any unpublished information known to him by reason of his official position. After termination of his period of service with the Fund, a person formerly on the staff may not, without the express authorization of the Managing Director, disclose any confidential information he has received during his service with the Fund by reason of his official position.

N–6. No person on the staff shall hold other public or private employment or engage in any occupation or profession which in the Fund's opinion is incompatible with the proper performance of his official duties.

N–7. A person on the staff may retain reemployment rights or pension rights acquired in the service of a public or private organization.

N–8. Any person on the staff who accepts a public office of a political character shall immediately resign from the Fund.

N–9. No person on the staff may accept any honor, decoration, favor, gift, or bonus from any government, or from any other authority or person external to the Fund, for services rendered during the period of his appointment or service with the Fund.

N–10. Upon appointment, each person on the staff will subscribe in writing to the following affirmation:

  • I solemnly affirm:

  • That, to the best of my ability, I will carry out my responsibilities in a manner that will further the purposes of the International Monetary Fund;

  • That I will refrain from communicating confidential information to persons outside the Fund;

  • That I will not use to private advantage information known to me by reason of my official position; and

  • That I will accept no instruction in regard to the performance of my duties from any government or authority external to the Fund.

N–11. All persons appointed to permanent positions on the staff shall be classified by grades or positions according to the nature of their duties and responsibilities. Salary increases within each grade will be progressively available upon the successful completion of successive periods of work or upon the recommendation of supervisors.

N–12. The salary scale for permanent employees of the Fund shall, so far as practicable, conform to the salary scale of United Nations.

N–13. The Managing Director shall inform the Executive Board at least two weeks in advance of any action to appoint or initiate the dismissal of the Directors and Assistant Directors of departments and offices of the Fund, the heads of divisions within departments and offices, and all persons to be paid 8,000 dollars or more per year. All other appointments to the staff shall be made by the Managing Director or his designated representative.

N–14. The Managing Director is authorized to issue General Orders, with the approval of the Executive Board, concerning the general personnel policies which shall apply to the operating staff of the Fund.


N–15. Official travel will be undertaken by staff members only with the approval of the Managing Director or officials designated by him. Official travel outside the continental limits of the United States will be undertaken only with the further approval of the Executive Board.

Adopted by the Executive Directors of the International Monetary Fund' September 25, 1946.

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