Abstract

This paper reviews key findings of the IMF’s Annual Report for the fiscal year ended April 30, 1955. The report highlights that in the course of 1954 and the first half of 1955, further considerable progress was made in the direction of free and less discriminatory trade. There was a continuation of the movement noted in the previous year, when steps were taken to relax the restrictions previously imposed for balance-of-payments reasons on imports, on currency transfers, and on dealings in foreign exchange.

APPENDICES

Appendix I LETTER OF MANAGING DIRECTOR TO ALL MEMBERS AND EXECUTIVE BOARD DECISION ON BILATERALISM

June 27, 1955

Sir:

I transmit to you herewith the policy decision on bilateralism adopted by the Executive Board on June 22, 1955. In so doing, I invite your attention particularly to the request it contains for the full collaboration of all Fund members to reduce and to eliminate as rapidly as practicable reliance on bilateralism.

The Fund believes that efficient collaboration to this end would be increased if members would now review their bilateral practices and arrangements which contain an element of exchange discrimination. This review would usefully serve as a preparation for consultations with the Fund during the year under Article XIV, and also for the close cooperation referred to in paragraph 3 of the attached policy decision.

Very truly yours,

/S/

Ivar Rooth

Managing Director

Policy Decision on Bilateralism

1. This decision records the Fund’s views on the use of bilateral arrangements.

2. Fund policies and attitude on bilateral arrangements which involve the use of exchange restrictions and represent limitations on a multilateral system of payments are an integral part of its policy on restrictions. This policy aims at the elimination of foreign exchange restrictions and the earliest possible establishment of a multilateral system of payments in respect of current transactions between members. The Fund’s policies and procedures on such restrictions rest on Articles I, VIII and XIV of the Fund Agreement.

3. Certain members have already taken steps to reduce their dependence on bilateral arrangements, but many members still use them. The Fund welcomes the reduced reliance on these arrangements and believes that the improvement in the international payments situation makes it less necessary for members to rely on such arrangements. The Fund urges the full collaboration of all its members to reduce and to eliminate as rapidly as practicable reliance on bilateralism. In this respect the Fund recommends close cooperation of those who plan to make their currencies convertible in the near future. Unless this policy is energetically pursued by all countries, both convertible and inconvertible, there is serious risk that widespread restrictions, particularly of a discriminatory character, will persist. Moreover, the persistence of bilateralism may impede the attainment and maintenance of convertibility. This whole problem is one not only for countries which maintain bilateral arrangements but also for other countries whose domestic and foreign economic policies may adversely affect the balance of payments of other members.

4. The Fund will have discussions with its members on their need to retain existing bilateral arrangements or their ability to facilitate the reduction of bilateral arrangements by other countries. During the coming year, the Fund will explore with all countries which are parties to bilateral arrangements which involve the use of exchange restrictions the need for the continuation of these arrangements, the possibilities of their early removal, and ways and means, including the use of the Fund’s resources, by which the Fund can assist in this process. In its examination of the justification for reliance on such bilateral arrangements the Fund will, without excluding other considerations, have particular regard to the payments position and prospects of the members concerned.

Appendix II DECISION ON TRANSACTIONS AND COMPUTATIONS INVOLVING FLUCTUATING CURRENCIES

The Fund 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 the following conclusions:

I. The Fund does not intend to apply the rules set forth in II below to its holdings of members’ currencies having fluctuating rates when there is no practical interest for the Fund or members to do so. To avoid misunderstanding, it may be useful to point out that these rules do not constitute a formula for dealing with the currencies of countries in which current transactions are conducted at multiple rates.

II. Subject to I above, the following rules are adopted:

Where the foreign exchange value of a currency fluctuates so that exchange transactions in that currency are not based on parity in accordance with Article IV, Section 3, and the Fund decides to apply Article IV, Section 8, computations by the Fund relating to that currency (hereinafter referred to as “fluctuating currency”) for the purpose of applying the provisions of the Articles of Agreement of the Fund will be made as follows:

  1. (i) Computations will be based on the mid-point between the highest rate and the lowest rate for the United States dollar quoted, for cable transfers for spot delivery, in the main financial center of the country of the fluctuating currency on the day specified in sub-paragraph (ii) below; provided, however, that when prescribed by sub-paragraph (iii) below computations will be based on the mid-point between the highest rate and the lowest rate for the fluctuating currency quoted in New York for cable transfers for spot delivery. Arrangements will be made with the Fund’s depository in the country of the appropriate exchange market as determined hereunder to communicate to the Fund the rates referred to in this sub-paragraph (i).

    • (ii) For the purpose of sub-paragraph (i) the specified day will be:

      • (a) For the sale or purchase by the Fund of a fluctuating currency in exchange for another currency, or the purchase of gold by the Fund under Article V, Section 6(a), or voluntary repurchase, the last business day, in the main financial center of the country of the fluctuating currency, before the Fund instructs its depository to transfer or receive the fluctuating currency.

      • (b) For computations for the purpose of Article V, Section 7(b) or Article V, Section 8(f), the day as of which the computation is made.

    • (iii) If a mid-point cannot be determined in the main financial center of the country of the fluctuating currency in accordance with sub-paragraph (i) for the day specified in sub-paragraph (ii), there will be substituted therefor the mid-point for the fluctuating currency in New York determined in accordance with sub-paragraph (i) for the same calendar day. If no such mid-point can be deter-mined for that day, there will then be substituted, to the extent necessary, first the previous business day in the main financial center of the country of the fluctuating currency, and secondly the same calendar day in New York. This procedure will be followed, to the extent necessary, until a mid-point is determined in accordance with sub-paragraph (i), except where the Fund decides to make a special determination under paragraph 6 below.

  2. Where as the result of the application of paragraph 1 the amount of currency which the Fund has agreed to sell would exceed the amount that the purchasing member is entitled to purchase under Article V, Section 3(a)(iii), the amount of currency to be sold will be reduced to the amount the purchasing member is entitled to purchase under that provision unless the Fund makes a waiver under Article V, Section 4.

  3. The Fund will revalue all of its holdings of a fluctuating currency on the basis of the mid-point employed for a computation under paragraph 1, and such revaluation will take effect as of the day specified for the computation in sub-paragraph (ii) of paragraph 1. As a minimum, revaluation will be made as of each July 31, October 31, January 31, and April 30.

  4. Whenever the Fund revalues its holdings of a fluctuating currency under paragraph 3, it will establish an account receivable or an account payable, as the case may be, in respect of the amount of the currency payable by or to the member under Article IV, Section 8. For the purpose of applying the provisions of the Articles as of any date, the Fund’s holdings of the fluctuating currency will be deemed to be its actual holdings plus the balance in any such account receivable or minus the balance in any such account payable as of that date.

  5. Any account receivable or payable established under paragraph 4 above will be settled promptly after each July 31, October 31, January 31, and April 30, provided, however, that settlement will not be necessary for any July 31, October 31, or January 31 on which the mid-point as determined under paragraph 1 above does not differ by more than five per cent from the rate for the last settlement. Settlement of any account receivable or payable established under paragraph 4 above will always be made when requested by either the Fund or the member.

  6. In any case in which it appears to the Fund that any of the provisions of paragraphs 1 to 5 above are not adequate or satisfactory, the Fund will make a special determination for the treatment of such case.

III. Sections I and II above of this decision shall be communicated to members together with SM/54/25 as amended by SM/54/25, Supplement 1 as an explanatory memorandum.

June 15, 1954

Appendix III SUMMARY OF FUND TRANSACTIONS

from the beginning of operations to April 30, 19551

(In millions of U.S. dollars)

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Totals may not equal sum of items because of rounding.

$1,197.7 million sold for currency and $6.2 million for gold.

$577.9 million repurchased with convertible currency and $108.3 million with gold.

Appendix IV DECISION ON GOLD MARGINS—AMENDMENT OF RULE F-4

The following amendment of Rule F-4 adopted at Meeting 54/52 [October 15, 1954] shall continue to be effective after November 15, 1954:

For transactions in gold by a member the margin above and below par value shall be, at the option of the member, either:

  • 1. One quarter of one per cent plus the following charges:

    • (a) The actual or computed cost of converting the gold transferred into good delivery bars at the normal center for dealing in gold of either the buying member or the member whose currency is exchanged for the gold;

    • (b) The actual or computed cost of transporting the gold transferred to the normal center for dealing in gold of either the buying member or the member whose currency is exchanged for the gold;

    • (c) Any charges made by the custodian of the gold transferred for effecting the transfer; or

  • 2. One per cent, which one per cent shall be taken to include all of the charges set forth in 1 above.

November 5, 1954

Appendix V MEMBERSHIP, QUOTAS, GOVERNORS, AND VOTING POWER

as of April 30, 1955

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Voting power varies on certain matters with use by members of Fund resources.

This total is not equal to the sum of the items because of rounding.

Appendix VI CHANGES IN MEMBERSHIP OF THE BOARD OF GOVERNORS

Changes in the membership of the Board of Governors between May 1, 1954 and April 30, 1955 have been as follows:

David Horowitz was appointed Governor for Israel, June 14, 1954. Martin Rosenbluth was appointed Alternate Governor for Israel, June 14, 1954.

Sjafruddin Prawiranegara was appointed Governor for Indonesia, June 28, 1954.

Soetikno Slamet was appointed Alternate Governor for Indonesia, June 28, 1954.

M. D. H. Jayawardene succeeded Sir Oliver Goonetilleke as Governor for Ceylon, July 6, 1954.

Abdel Hamid El Cherif succeeded Abdel Galeel El Emary as Governor for Egypt, July 11, 1954.

Guillermo Mac Lean succeeded Alfredo Oporto Crespo as Alternate Governor for Bolivia, July 14, 1954.

Walter Edward Harris succeeded Douglas Charles Abbott as Governor for Canada, July 22, 1954.

Clemente de Althaus, Governor for Peru, died July 22, 1954.

Prince Viwat was reappointed Governor for Thailand, July 28, 1954.

Puey Ungphakorn succeeded Kajit Kasemsri as Alternate Governor for Thailand, July 28, 1954.

Peh-Yuan Hsu succeeded Chia Kan Yen as Governor for China, July 29, 1954.

Ezio Vanoni succeeded Giuseppe Pella as Governor for Italy, July 30, 1954.

Andres F. Dasso was appointed Governor for Peru, August 3, 1954.

Nicolaas Christiaan Havenga was reappointed Governor for the Union of South Africa, August 5, 1954.

Erik Brofoss succeeded Gunnar Jahn as Governor for Norway, August 6, 1954.

Gustavo Miron Porras succeeded Manuel Noriega Morales as Governor for Guatemala, August 17, 1954.

Carlos Leonidas Acevedo resigned as Alternate Governor for Guatemala, August 17, 1954.

Abdul Qadir succeeded Anwar Ali as Alternate Governor for Pakistan, August 20, 1954.

Manuel Bendfeldt Jauregui was appointed Alternate Governor for Guatemala, August 26, 1954.

Dhya Jafar succeeded Abdul Kerim Al-Uzri as Governor for Iraq, September 2, 1954.

Saleh Kubba succeeded Abdul Ghani Al-Dalli as Alternate Governor for Iraq, September 2, 1954.

Abdel Moneim El Kaissouni succeeded Abdel Hamid El Cherif as Governor for Egypt, September 7, 1954.

U Kyaw Nyein succeeded U Tin as Governor for Burma, September 11, 1954.

U San Lin succeeded U Kyaw Nyun as Alternate Governor for Burma, September 11, 1954.

Feridun Cemal Erkin succeeded Hasan Polatkan as Governor for Turkey, September 21, 1954.

Munir Mostar succeeded Burhan Ulutan as Alternate Governor for Turkey, September 21, 1954.

Jorge Rossi succeeded Angel Coronas as Governor for Costa Rica, September 23, 1954.

Mario Saborio succeeded Mario Fernandez as Alternate Governor for Costa Rica, September 23, 1954.

Jens Otto Krag succeeded Svend Nielsen as Governor for Denmark, September 23, 1954.

Carlos J. Canessa succeeded Catalino Herrera as Governor for El Salvador, September 23, 1954.

Awni Khalidy succeeded Dhya Jafar as Governor for Iraq, September 23, 1954.

Pedro A. Caballero succeeded Hermogenes Gonzalez Maya as Governor for Paraguay, September 23, 1954.

Angel Coronas succeeded Jorge Rossi as Governor for Costa Rica, September 30, 1954.

Mario Fernandez succeeded Mario Saborio as Alternate Governor for Costa Rica, September 30, 1954.

Svend Nielsen succeeded Jens Otto Krag as Governor for Denmark, September 30, 1954.

Catalino Herrera succeeded Carlos J. Canessa as Governor for El Salvador, September 30, 1954.

Dhya Jafar succeeded Awni Khalidy as Governor for Iraq, September 30, 1954.

Sir Arthur Ranasinha succeeded N. U. Jayawardena as Alternate Governor for Ceylon, November 10, 1954.

J. J. Gomez succeeded S. Salvador Ortiz as Governor for the Dominican Republic, December 1, 1954.

Hisato Ichimada succeeded Sankuro Ogasawara as Governor for Japan, December 17, 1954.

Eikichi Araki succeeded Hisato Ichimada as Alternate Governor for Japan, December 17, 1954.

James Elliott Coyne succeeded Graham Ford Towers as Alternate Governor for Canada, January 13, 1955.

Epifanio Mendez succeeded Pedro A. Caballero as Governor for Paraguay, February 4, 1955.

Pedro Juan Mayor succeeded Augusto Urbieta Fleitas as Alternate Governor for Paraguay, February 4, 1955.

Ahmed Nabih Younis succeeded Mustapha El Kouni as Alternate Governor for Egypt, February 10, 1955.

Gabriel Orellana succeeded Manuel Bendfeldt Jauregui as Alternate Governor for Guatemala, February 18, 1955.

Hasan Polatkan succeeded Feridun Cemal Erkin as Governor for Turkey, February 23, 1955.

Burhan Ulutan succeeded Munir Mostar as Alternate Governor for Turkey, February 23, 1955.

R. v. Fieandt succeeded Sakari Tuomioja as Governor for Finland, March 17, 1955.

Eric Hendrik Louw succeeded Nicolaas Christiaan Havenga as Governor for the Union of South Africa, April 13, 1955.

Hector Garcia Godoy succeeded Pedro Pablo Cabral B. as Alternate Governor for the Dominican Republic, April 14, 1955.

Appendix VII EXECUTIVE DIRECTORS AND VOTING POWER

as of April 30, 1955

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Voting power varies on certain matters with use by members of Fund resources.

This total is not equal to the sum of the items because of rounding.

Appendix VIII CHANGES IN MEMBERSHIP OF THE EXECUTIVE BOARD

Changes in the membership of the Executive Board between May 1, 1954 and April 30, 1955 have been as follows:

J. H. Warren was appointed Alternate Executive Director to Louis Rasminsky, effective May 1, 1954.

Erling Sveinbjornsson served as Temporary Alternate Executive Director to Alf K. Eriksen, May 5, 1954.

C. A. Annis served as Temporary Alternate Executive Director to Louis Rasminsky, May 14 to 19, 1954.

Thomas Basyn served as Temporary Alternate Executive Director to Hubert Ansiaux, May 19 to June 9, 1954.

Alejandro Baca-Muñoz resigned as Alternate Executive Director to Enrique Delgado, May 28, 1954.

Sir Edmund Hall-Patch resigned as Executive Director for the United Kingdom, June 30, 1954.

D. H. F. Rickett was appointed Executive Director for the United Kingdom, effective July 1, 1954.

F. J. Portsmore, formerly Alternate Executive Director to Sir Edmund Hall-Patch, was appointed Alternate Executive Director to D. H. F. Rickett, effective July 1, 1954, and to Viscount Harcourt, effective November 1, 1954.

Günther Grosse served as Temporary Alternate Executive Di-rector to Otmar Emminger, July 7 to 9 and July 23 to August 18, 1954.

C. W. Conron served as Temporary Alternate Executive Director to L. H. E. Bury, August 11, 1954.

D. H. F. Rickett resigned as Executive Director for the United Kingdom, September 30, 1954.

Viscount Harcourt was appointed Executive Director for the United Kingdom, effective October 1, 1954.

José Luna-Guerra was appointed Alternate Executive Director to Enrique Delgado, effective October 15, 1954.

Veikko Makkonen served as Temporary Alternate Executive Director to Alf K. Eriksen, October 20, 1954.

Hubert Ansiaux completed his term of service as Executive Director for Belgium and Luxembourg, October 31, 1954.

Enrique Delgado completed his term of service as Executive Director for Colombia, Costa Rica, Cuba, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, and Venezuela, October 31, 1954.

Alf K. Eriksen completed his term of service as Executive Director for Denmark, Finland, Iceland, Norway, and Sweden, October 31, 1954.

William Tennekoon completed his term of service as Alternate Executive Director to Takeo Yumoto, October 31, 1954.

S. T. G. Åkermalm completed his term of service as Alternate Executive Director to Alf K. Eriksen, October 31, 1954, and was elected Executive Director by Denmark, Finland, Iceland, Norway, and Sweden, effective November 1, 1954.

L. H. E. Bury was re-elected Executive Director by Australia and the Union of South Africa, effective November 1, 1954.

B. B. Callaghan was reappointed Alternate Executive Director to L. H. E. Bury, effective November 1, 1954.

D. Crena de Iongh completed his term of service as Executive Director for the Netherlands, October 31, 1954, and was elected Executive Director by Israel, the Netherlands, and Yugoslavia, effective November 1, 1954.

H. M. H. A. van der Valk was reappointed Alternate Executive Director to D. Crena de Iongh, effective November 1, 1954.

Otmar Emminger completed his term of service as Executive Director for the Federal Republic of Germany and Yugoslavia, October 31, 1954, and was elected Executive Director by the Federal Republic of Germany, effective November 1, 1954.

Otto Donner was reappointed Alternate Executive Director to Otmar Emminger, effective November 1, 1954.

Jean C. Godeaux completed his term of service as Alternate Executive Director to Hubert Ansiaux, October 31, 1954, and was elected Executive Director by Austria, Belgium, Luxembourg, and Turkey, effective November 1, 1954.

Maurice Toussaint was appointed Alternate Executive Director to Jean C. Godeaux, effective November 1, 1954, and to André van Campenhout, effective December 1, 1954.

Carlo Gragnani completed his term of service as Executive Director for Austria, Greece, Italy, and Turkey, October 31, 1954, and was elected Executive Director by Greece, Indonesia, and Italy, effective November 1, 1954.

Costa P. Caranicas was reappointed Alternate Executive Director to Carlo Gragnani, effective November 1, 1954.

José Luna-Guerra completed his term of service as Alternate Executive Director to Enrique Delgado, October 31, 1954, and was elected Executive Director by Colombia, Costa Rica, Cuba, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, and Venezuela, effective November 1, 1954.

Jorge Sol was appointed Alternate Executive Director to Jose Luna-Guerra, effective November 1, 1954.

Octavio Paranaguá completed his term of service as Executive Director for Bolivia, Brazil, Chile, Dominican Republic, Ecuador, Panama, Paraguay, Peru, and Uruguay, October 31, 1954, and was elected Executive Director by Bolivia, Brazil, Chile, Dominican Republic, Ecuador, Haiti, Panama, Paraguay, Peru, and Uruguay, effective November 1, 1954.

Joaquim Cândido Gouvêa Filho was reappointed Alternate Executive Director to Octavio Paranaguá, effective November 1, 1954.

Louis Rasminsky was re-elected Executive Director by Canada, effective November 1, 1954.

J. H. Warren was reappointed Alternate Executive Director to Louis Rasminsky, effective November 1, 1954.

Ahmed Zaki Saad was re-elected Executive Director by Egypt, Ethiopia, Iran, Iraq, Jordan, Lebanon, Pakistan, Philippines, and Syria, effective November 1, 1954.

Takeo Yumoto was re-elected Executive Director by Burma, Ceylon, Japan, and Thailand, effective November 1, 1954.

Boonma Wongswan was appointed Alternate Executive Director to Takeo Yumoto, effective November 1, 1954.

Torben Friis was appointed Alternate Executive Director to S. T. G. Akermalm, effective November 10, 1954.

Jean C. Godeaux resigned as Executive Director for Austria, Belgium, Luxembourg, and Turkey, November 30, 1954.

André van Campenhout was elected Executive Director by Austria, Belgium, Luxembourg, and Turkey, effective December 1, 1954.

R. G. C. Smith served as Temporary Alternate Executive Director to Louis Rasminsky, December 22, 1954.

F. J. Portsmore resigned as Alternate Executive Director to Viscount Harcourt, December 31, 1954.

P. J. Keogh was appointed Alternate Executive Director to Viscount Harcourt, effective January 1, 1955.

Appendix IX (i) ADMINISTRATIVE BUDGET Letter of Transmittal

July 1, 1955

My dear Mr. Chairman:

The administrative budget of the Fund for the Fiscal Year ending April 30, 1956, as approved by the Board of Executive Directors, is presented for the information of the Board of Governors in accordance with Section 20 of the By-Laws.

The presentation includes the actual experience for the Fiscal Year 1953-54, and the budget and actual expenditures for the Fiscal Year 1954-55 as compared with the administrative budget for the Fiscal Year 1955-56.

I should like to reiterate that it is of course impossible to predict whether the amounts budgeted will, in fact, meet the requirements of the Fund’s program. The amounts shown are an estimate of requirements on the basis of the expected level of activities. Should contingencies arise or present plans change materially, the management may have to recommend an appropriate amendment to the Executive Board.

Yours sincerely,

/s/

Ivar Rooth

Chairman of the Executive Board

Chairman of the Board of Governors

International Monetary Fund

Appendix IX (ii) ADMINISTRATIVE BUDGET

As Approved by the Executive Board for the Fiscal Year Ending April 30, 1956, Compared with Actual Expenditures for the Fiscal Years 1953-54 and 1954-55

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Includes $16,600 for liquidation of prior year commitments.

Appendix IX (iii) COMPARATIVE STATEMENT OF INCOME

(Values expressed in U. S. dollars on basis of established parities)

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See Appendix X (vi), footnote 4.

Excludes transfers to Stand-By Charge Reserve for the years 1954 and 1955 of $42,091.77 and $42,091.78, respectively.

Appendix X (i) BALANCE SHEET, STATEMENT OF INCOME AND EXPENDITURE, AND SUPPORTING SCHEDULES Letter of Transmittal

July 1, 1955

My dear Mr. Chairman:

In accordance with Section 20(b) of the By-Laws of the Fund, I have the honor to submit for the consideration of the Board of Governors the audited Balance Sheet and the audited Statement of Income and Expenditure of the Fund for the year ended April 30, 1955, together with the Auditors’ Certificate, as well as audited financial statements of the Staff Retirement Fund.

In conformity with the By-Laws, the external audit of the Fund has been performed by an Audit Committee consisting of auditors nominated by three member countries. At the Fund’s request, Australia, the Federal Republic of Germany, and Turkey nominated auditors to serve on this Committee. They respectively nominated Mr. Lindsay G. D. Farmer, Chief Auditor in New York for the Commonwealth of Australia; Mr. Josef Heiliger, Director of the Procedures and Auditing Department of the Bank deutscher Länder; and Mr. Münir Mostar, Financial Counselor of the Turkish Embassy in Washington, D. C. The auditors thus nominated were confirmed by the Executive Directors.

It will be noted that, in the period under review, expenditure exceeded income by $2,522,941.94, and that the total excess of expenditure over income from inception to April 30, 1955 is thus increased to $10,512,715.31.

The detailed report of the Audit Committee is being submitted separately to the Board of Governors.

Yours sincerely,

/s/

Ivar Rooth

Chairman of the Executive Board

Chairman of the Board of Governors

International Monetary Fund

Appendix X (ii) AUDITORS’ CERTIFICATE

We have made an independent examination of the Balance Sheet of the International Monetary Fund as at April 30, 1955, of the Statement of Income and Expenditure for the fiscal year then ended, and of the schedules related to such financial statements. As required by Section 20 of the Fund’s By-Laws, our examination was made in accordance with generally accepted auditing standards and included all procedures which we considered necessary in the circumstances. We have examined or tested, to the extent deemed appropriate, the accounting records of the Fund and other supporting evidence of its financial transactions; we have ascertained generally and to the extent practicable that financial transactions have been conducted in compliance with the Fund’s requirements; and we have obtained from the officers and staff of the Fund all such information and representations as we have required in the conduct of our audit. We have also reviewed the accounting methods and system of internal control.

In our opinion, based on our examination, such Balance Sheet and related Statement of Income and Expenditure, together with the notes appearing thereon, present fairly the financial position of the International Monetary Fund as at April 30, 1955, and the results of its operations for the fiscal year then ended, and were prepared in conformity with generally accepted accounting principles applied on a basis consistent with that of previous fiscal years.

/s/ L. G. D. Farmer (Australia)

/s/ Josef Heiliger (Germany)

/s/ Münir Mostar (Turkey)

Appendix X (iii) BALANCE SHEET April 30, 1955

Values expressed in United States dollars n the basis of established parities (See Note 1)

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NOTES: 1. With the exception of Canadian dollars, French francs, Indonesian rupiah, and Peruvian soles which, for bookkeeping purposes, are computed at provisional rates of 0.988750 dollar, 349.600 francs, 11.4000 rupiah, and 19.0000 soles per U. S. dollar.2. Excludes 2,022.522 fine ounces earmarked for members.3. After deduction of $91,085.33, representing transfers of provisions for meeting potential costs in respect of gold, shown in previous balance sheets as separate reserves.4. A stand-by charge has, under certain circumstances, to be credited against the service charge for a drawing under the stand-by arrangement. The maximum amount on April 30, 1955 is $84,183.55. A portion of the stand-by charge is refundable to a member if the arrangement is cancelled. The maximum amount on April 30, 1955 is $36,174.64.5. The assets and liabilities of the Staff Retirement Fund are not included in this balance sheet.

Appendix X (iv) STATEMENT OF INCOME AND EXPENDITURE for the year ended April 30, 1955

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Excludes $42,091.78 (net) transferred to Stand-By Charge Reserve.

Appendix X (v) GOLD WITH DEPOSITORIES April 30, 1955 Valued at US$35 per fine ounce

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The gold shown above does not include 2,022.522 fine ounces held under earmark by the Fund as follows:

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Appendix X (vi) STATEMENT OF CURRENCIES AND SECURITIES April 30, 1955

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In accordance with Article IV, Section 8.

Parity rates, except for those marked * which are provisional rates for bookkeeping purposes. Rates marked † represent U. S. cents per currency unit; all other rates represent currency units per U. S. dollar.

Checking accounts are maintained with the Riggs National Bank in Washington, D. C. for the purpose of making local payments for administrative expenditure.

With reference to Czechoslovakia’s unilateral action of June 1, 1953, in regard to a change in the par value of the koruna, the Fund was advised by Czechoslovakia that a provisional account has been opened in “new currency” and that various entries have been made therein to reflect currency payments due to or from the Fund in connection with charges on balances in excess of quota. Since this method of settlement has not been approved by the Fund, no entries have been made in our koruna accounts here in respect of these items, which are carried on the Fund’s books as Accounts Receivable and Payable at the rate of 50 korunas per U. S. dollar, the par value agreed with the Fund on December 18, 1946.

Appendix X (vii) STATUS OF SUBSCRIPTIONS TO CAPITAL April 30, 1955

(expressed in U.S. dollars)

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As per Article XX, Section 2(d), of the Articles of Agreement.

Accepted provisionally at the rate of 11.4000 rupiah per U. S. dollar, subject to such adjustment as may be necessary when a par value for the rupiah is agreed upon.