Abstract

Selected Decisions of the Executive Directors and Selected Documents

Title Page

Selected Decisions of the Executive Directors and Selected Documents

FOURTH ISSUE

INTERNATIONAL MONETARY FUND

Washington, D.C., April 1, 1970

Preface

This volume presents selected decisions and interpretations of the Executive Directors of the International Monetary Fund which were taken or made prior to April 1, 1970, and certain selected documents of the Fund and of the United Nations to which frequent reference is made. With few exceptions, the decisions are of a general nature and relate to certain obligations, policies, and procedures under the Articles of Agreement.

This issue contains most of the decisions that were published in the first, second, and third issues (September 1962, September 1963, and January 1965), general decisions taken since then, some amendments of decisions, and certain earlier decisions and interpretations which were not incorporated in the previous issues. This issue includes some of the first decisions taken on special drawing rights. Decisions of the Executive Directors which are published in the By-Laws, Rules and Regulations are not included. Member legislation included in earlier issues in the section devoted to Selected Documents has been omitted from the present issue.

Some of the decisions that were adopted before the modifications of the Articles of Agreement became effective on July 28, 1969 may be affected by those modifications. Any amendments of those decisions will be included in later issues of this collection.

Joseph Gold

General Counsel and Director, Legal Department

Contents

  • Selected Decisions of the Executive Directors

  • ARTICLE III, SECTION 2

  • Adjustment of Quotas (408-2)

  • ARTICLE III, SECTION 3

  • Subscriptions

    • Gold and Currency Subscribed to the Fund and Accounting by Members for Transactions with the Fund (170-3)

    • Net Official Holdings: Principles of Interpretation (298-3)

  • ARTICLE III, SECTION 4

  • Payments when Quotas are Changed

    • Interpretation (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

  • Production Subsidies and Premium Prices for Gold

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

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

  • ARTICLE IV, SECTIONS 3, 4, 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)

    • Purchase and Sale of Gold Within the Meaning of Article IV, Section 4(b) (411-1)

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

  • ARTICLE V, SECTIONS 3, 4, AND 5

  • Use of Fund’s Resources and Stand-By Arrangements

    • Interpretation of Articles of Agreement (71-2)

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

    • 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))

    • Use of Fund’s Resources and Stand-By Arrangements (2603-(68/132))

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

    • Stand-By Arrangements: Refund of Charges (1345-(62/23), as amended by 2620-(68/141))

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

    • Procedure for Purchases Under Stand-By Arrangements (3006-(70/24))

    • 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))

    • Compensatory Financing of Export Fluctuations (1477-(63/8), as amended by 2192-(66/81))

    • The Problem of Stabilization of Prices of Primary Products (2772-(69/87))

    • Gold Tranche Purchases Under Article V, Section 3(d) (2836-(69/87))

    • Gold Collateral Transactions (1543-(63/39))

    • Exchange Transactions Prior to the Establishment of Initial Par Value (1687-(64/22))

  • ARTICLE V, SECTION 6

  • Sales of Gold to the Fund

    • Policy on Sales of Gold to the Fund: South Africa (2914-(69/127))

    • Sale of Gold to the Fund by Participant Designated Under Article XXV, Section 5 (2916-(69/127))

  • ARTICLE V, SECTION 7

  • Repurchase Obligations

    • Effect of Payment of Gold Subscriptions on Repurchase Obligations (124-2)

    • Repurchase Obligations: Article V, Section 7(b) (i) or (ii) (447-5)

    • Repurchase Obligations: Article V, Section 7(c)(419-1)

    • Voluntary Repurchases (7-(648))

    • Repurchase and Rule G-7 (119-(52/30))

    • Repurchases: Small Amounts Included in Article V, Section 7(b) Obligations (2499-(68/77))

    • Calculation of Repurchase Obligations: Prompt Reporting of Monetary Reserves Data (1813-(65/4), as amended by 2499-(68/77))

  • ARTICLE VI, SECTION 1

  • Use of Fund’s Resources for Capital Transfers (See also pages 17 and 19)

  • ARTICLE VI SECTION 3

  • Controls on Capital Transfers (541-(56/39))

  • ARTICLE VII, SECTION 2

  • Borrowing

    • General Arrangements to Borrow (1289-(62/1))

    • General Arrangements to Borrow: First Renewal (1951-(65/54))

    • General Arrangements to Borrow: Second Renewal (2858-(69/96))

    • General Arrangements to Borrow: Association of Switzerland (1712-(64/29))

    • General Arrangements to Borrow: Extension of Association of Switzerland (2377-(67/85))

    • Bilateral Borrowing (2151-(66/66))

  • 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

    • Interpretation of Article XII, Sections 3(b)(i) and 3(f) (2-1)

    • Executive Directors: Article XII, Section 3(c) (574-2, as amended by 2620-(68/141))

    • Additional Appointed Directors (597-4)

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

  • ARTICLE XIV, SECTION 4

  • Restrictions on Payments and Transfers: Withdrawal

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

  • ARTICLE XV, SECTION 2

  • Interpretation (343-(54/47))

  • ARTICLE XVII

  • Amendment of the Articles of Agreement

    • Board of Governors Resolution No. 22-8: Report of Executive Directors and Proposed Amendment to the Articles of Agreement (2493-(68/74))

  • ARTICLE XIX

  • Monetary Reserves and Official Holdings

    • Net Official Holdings: Principles of Interpretation (298-3)

    • Currency Liabilities: Article XIX(e) (486-2)

    • Currency Liabilities: Article XIX(e) (493-3)

  • ARTICLE XX, SECTION 4 (i)

  • Use of Fund’s Resources: Postponement Under Article XX, Section 4(i) (284-2)

  • ARTICLE XXV, SECTION 7

  • Use of Special Drawing Rights in Repurchases and Payment of Charges (2901-(69/122) G/S)

  • ARTICLE XXVI, SECTION 5

  • Special Drawing Account: Payment of Interest, Charges, and Assessments (3010-(70/25) G/S)

  • ARTICLE XXXII(b) (1)

  • Special Drawing Account: Currencies Convertible in Fact

    • Currency Convertible in Fact: U.S. Dollar (2918-(69/128) S)

    • Representative Exchange Rate: Sterling (2956-(70/8) S)

    • Currency Convertible in Fact: Sterling (2955-(70/8) S)

    • Representative Exchange Rate: French Franc (2958-(70/8) S)

    • Currency Convertible in Fact: French Franc (2957-(70/8) S)

    • Representative Exchange Rate: Belgian Franc (2960-(70/8) S)

    • Currency Convertible in Fact: Belgian Franc (2959-(70/8) S)

    • Representative Exchange Rate: Deutsche Mark (2962-(70/8) S)

    • Currency Convertible in Fact: Deutsche Mark (2961-(70/8) S)

    • Representative Exchange Rate: Italian Lira (2964-(70/8) S)

    • Currency Convertible in Fact: Italian Lira (2963-(70/8) S)

    • Representative Exchange Rate: Mexican Peso (2966-(70/8) S)

    • Currency Convertible in Fact: Mexican Peso (2963-(70/8) S)

    • Representative Exchange Rate: Netherlands Guilder(2989-(70/19) S)

    • Currency Convertible in Fact: Netherlands Guilder (2988-(70/19) S)

  • SCHEDULE B

  • Calculation of Repurchase Obligations

    • Calculation of Monetary Reserves (486-2)

    • Calculation of Members’ Repurchase Obligations: Schedule B, Paragraph 3 (510-2)

  • GENERAL

  • Fund Assistance in Gold Transactions

    • Members’ Gold Transactions (103-(52/12))

    • Fund Assistance in Gold Transactions (316-(54/27))

    • Fund Assistance in Gold Transactions (572-(56/55))

    • Fund Assistance in Gold Transactions (1033-(60/26))

    • Fund Assistance in Gold Transactions (1116-(60/51))

  • Investment of Fund’s Assets

    • Investment of Fund’s Assets (488-(56/5), as amended by 2844-(69/90))

    • 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))

  • Selected Documents

  • Index to Selected Decisions

Reference List of Decision Numbers

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Interpretations Under Article XVIII (a)

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