Abstract

This paper explains various selected decisions of the IMF’s Executive Directors. The IMF has examined certain problems relating to the adjustment of its holdings of fluctuating currencies and to transactions and computations involving such currencies and has come to several conclusions. The IMF does not intend to apply the rules set forth in in the section II to its holdings of members' currencies having fluctuating rates when there is no practical interest for the IMF or members to do so. Whenever the IMF revalues its holdings of a fluctuating currency under paragraph 3, it will establish an account receivable or an account payable in respect of the amount of the currency payable by or to the member under Article IV, Section 8. Despite the improvement in the payments position of many members, sound gold and exchange policy of members continues to require that to the maximum extent practicable, gold should be held in official reserves rather than go into private hoards.

Selected Decisions of the Executive Directors

INTERNATIONAL MONETARY FUND

FIRST ISSUE

Washington, D. C., September 1962

61119

Preface

This volume presents a collection of decisions and interpretations of the Executive Directors of the International Monetary Fund which were taken or made prior to August 1, 1962. The selection has been made with the objective of bringing together the texts of general decisions relating to certain obligations, policies, and procedures under the Articles of Agreement to which frequent reference is made.

Decisions of the Executive Directors which have been incorporated in the By-Laws, Rules and Regulations, such as the schedule of charges, or published in the Explanatory Memorandum on Monetary Reserves, Repurchase Obligations, and Voluntary Repurchases under the Articles of Agreement of the International Monetary Fund (Fund Circular No. 9, Revision 2), are not included here.

It is intended to issue later editions which will keep the collection up to date.

Contents

  • ARTICLE III, SECTION 2

  • ADJUSTMENT OF QUOTAS (408-2)

  • ARTICLE III, SECTION 4

  • PAYMENTS WHEN QUOTAS ARE CHANGED (595-3)

  • ARTICLE IV, SECTION 1

  • TRANSACTIONS AND COMPUTATIONS INVOLVING FLUCTUATING CURRENCIES

    • Transactions and Computations Involving Fluctuating Currencies (321-(54/32))

    • Transactions and Computations Involving Fluctuating Currencies (1245-(61/45))

    • Transactions and Computations Involving Fluctuating Currencies (1283-(61/56))

  • ARTICLE IV, SECTION 2

  • GOLD

    • Premium Gold Transactions: Statement to Members (75-(705))

    • Statement of Policy Concerning Subsidies for Gold Production (233-2)

  • ARTICLE IV, SECTIONS 3 AND 5

  • PAR VALUES AND MARGINS

    • Foreign Exchange Dealings Based on Parity: Article IV, Section 3 (269-2)

    • Exchange Dealings and Margins Under Conditions of Increasing Convertibility (904-(59/32))

    • Interpretation of Articles of Agreement (71-2)

    • Changes in Par Values: Fundamental Disequilibrium (278-3)

  • ARTICLE V, SECTIONS 3, AND 5

  • USE OF FUND’S RESOURCES AND STAND-BY ARRANGEMENTS

    • Use of Fund’s Resources: Meaning of Article V, Section 3(a)(i) (284-4)

    • Use of Fund’s Resources: Meaning of “Consistent with the Provisions of This Agreement” in Article V, Section 3 (287-3)

    • Extent of Drawing Rights: Meaning of Article V, Section 3 (a) (iii) (451-(55/52))

    • Use of Fund’s Resources and Repurchases (102-(52/11))

    • Stand-By Credit Arrangements (155-(52/57))

    • I. Use of Fund’s Resources and Repurchases (270-(53/95))

    • II. Stand-By Credit Arrangements (270-(53/95))

    • Charges for Transactions and Stand-By Arrangements (876-(59/15))

    • Stand-By Arrangements: Refund of Charges (1345-(62/23))

    • Stand-By Arrangements (1151- (61/6))

    • Use of Fund’s Resources: Limitation and Ineligibility Under Article V, Section 5 (284-3)

    • Use of Fund’s Resources: Postponement and Limitation Under Article V, Section 5 (286-1)

    • Use of Fund’s Resources: Meaning of “Is Using” in Article V, Section 5 (292-3)

    • Currencies to Be Drawn and to Be Used in Repurchases (1371-(62/36))

  • ARTICLE VI, SECTION 1

  • USE OF FUND’S RESOURCES FOR CAPITAL TRANSFERS

    • Interpretation of Articles of Agreement (71-2)

    • Use of Fund’s Resources for Capital Transfers (1238-(61/43))

  • ARTICLE VI, SECTION 3

  • CONTROLS ON CAPITAL TRANSFERS (541-(56/39))

  • ARTICLE VII, SECTION 2

  • GENERAL ARRANGEMENTS TO BORROW (1289-(62/1)

  • ARTICLE VIII, SECTION 2(b)

  • UNENFORCEABILITY OF EXCHANGE CONTRACTS

    • Unenforceability of Exchange Contracts: Fund’s Interpretation of Article VIII, Section 2(b) (446-4))

  • ARTICLE VIII AND ARTICLE XIV

  • PAYMENTS RESTRICTIONS

    • Payments Restrictions for Security Reasons: Fund Jurisdiction (144-(52/51))

    • Bilateralism and Convertibility (433-(55/42))

    • Retention Quotas: Decision and Letter of Transmittal (201-(53/29))

    • Discrimination for Balance of Payments Reasons (955-(59/45))

    • Article VIII and Article XIV (1034- (60/27))

  • MULTIPLE CURRENCY PRACTICES

    • Statement to Members Transmitting Fund’s Decisions on Multiple Currency Practices (237-2)

    • Multiple Currency Practices (649-(57/33))

  • ARTICLE IX, SECTION 7

  • PRIVILEGE FOR COMMUNICATIONS

    • Interpretation of Article IX, Section 7 (534-3)

  • ARTICLE XII, SECTION 3

  • EXECUTIVE DIRECTORS

    • Executive Directors: Article XII, Section 3 (c) (574-2)

    • Additional Appointed Directors (597-4)

    • Adjustment of Quota and Voting Power (180-5)

  • ARTICLE XIV, SECTION 1

  • USE OF FUND’S RESOURCES: PURPOSE

    • Use of Fund’s Resources by Countries Undergoing Reconstruction (196-2)

  • ARTICLE XIV, SECTION 4

  • RESTRICTIONS ON PAYMENTS AND TRANSFERS: WITHDRAWAL

    • Meaning of “Exceptional Circumstances” in Article XIV, Section 4 (117-1)

  • ARTICLE XX, SECTION 4(i)

  • USE OF FUND’S RESOURCES: POSTPONEMENT UNDER ARTICLE XX, SECTION 4(i) (284-2)

  • GENERAL

  • INVESTMENT OF FUND’S ASSETS

    • Investment of Fund’s Assets (488-(56/5))

    • Fund’s Investment Program (708-(57/57))

    • Fund’s Investment Program (905-(59/32))

    • Fund’s Investment Program (1107-(60/50))

    • Fund’s Investment Program (1272-(61/53))

Contents: Reference List of Decision Numbers

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