During the fiscal year ended April 30, 1955, one change in a member’s par value was made in agreement with the Fund. On August 18, 1954, the Fund concurred in a proposal by the Government of Paraguay for a change in the par value of the Paraguayan guaraní from 15 guaraníes to 21 guaraníes per U. S. dollar. About the same time, significant modifications, which reflected the change of par value, were made in Paraguay’s system of multiple exchange rates. The main effect of these modifications was an upward revision of the effective selling rates amounting to 6 guaraníes per dollar for the most important import categories. This move was designed to overcome the inflationary effects which the operations of the exchange system had increasingly produced as effective export rates had been subjected to upward adjustments. Inflationary conditions, the effects of which had been accumulating for some time, led to substantial increases in minimum prices for agricultural products and in minimum wages early in 1954. All these factors had contributed to a monetary expansion which the exchange rate adjustments were intended to correct. The decline of foreign exchange reserves had also had a contractionary effect throughout the period under review, and the increase in prices and money supply proceeded at a slower rate in 1954 than in previous years. More recently, however, there have been further readjustments of minimum wages and of minimum prices for agricultural products which may tend to offset to some extent the contractionary effects anticipated from the exchange budget for the year 1955.