Abstract

In the provisions on the maintenance of gold value, the Articles deal not only with the change in the par or foreign exchange value of one currency in relation to gold and to other currencies but also with uniform changes in the par values of all currencies in relation to gold. With the latter changes, currencies preserve the same relationship among themselves but sustain the same proportionate change in terms of gold. This is often referred to as a change in the price of gold. In order to avoid confusion, it should be clear that it is the Fund’s decision to make a uniform proportionate change for all currencies under Article IV, Section 7, which constitutes a uniform proportionate change for the purposes of the Articles. Any member is permitted to prevent the change from becoming effective in relation to its currency. The fact that a so-called uniform proportionate change may not affect some currencies will not prevent the change from being a uniform proportionate one for the purposes of the Articles. If that were not the position, each member would be able to veto a uniform proportionate change.