Abstract

INTERNATIONAL MONETARY FUND

Title Page

INTERNATIONAL MONETARY FUND

ANNUAL REPORT OF THE EXECUTIVE DIRECTORS FOR THE FISCAL YEAR ENDED APRIL 30, 1964

WASHINGTON, D. C.

Contents

  • Letter of Transmittal

  • PART I. THE WORLD ECONOMY AND THE FUND

    • 1. General Survey

    • 2. The Activities of the Fund

      • Membership, Quotas, and Executive Directors

      • Par Values

      • General Arrangements to Borrow

      • Fund Transactions

        • Purchases and Stand-By Arrangements, 1963-64

        • Monetary Reserves and Repurchase Obligations

        • Repurchases, 1963-64

        • Currency Composition of Purchases and Repurchases

        • Summary of Transactions

        • Fund Charges

      • Consultations with Members

        • International Indebtedness

      • Cooperation with Other International Organizations

      • Technical Assistance and Training Program

        • Training Program

      • Management and Staff

      • Administrative Finance

      • Publications

  • PART II. INTERNATIONAL LIQUIDITY

    • 3. International Liquidity: The Issues

      • Introduction

      • Nature and Components of International Liquidity

      • The Relation Between International Liquidity and the Process of Adjustment of International Payments

      • Adequacy of International Liquidity

        • Demand for Liquidity

        • Supply of Liquidity

      • Shorter-Term Variations in the Need for and Supply of International Liquidity

      • Concluding Observations

    • 4. The Fund and International Liquidity

      • The Fund as a Source of Liquidity

      • Fund Quotas and Quota Increases

      • Quota Increases and the Fund’s Gold Policies

      • General Arrangements to Borrow

      • Potential Further Contribution by the Fund Toward the Supply of Unconditional Liquidity

  • PART III. REVIEW OF THE YEAR

    • 5. Economic Developments in the Industrial Countries

      • Introduction

      • Output, Employment, and Wages

      • Prices

      • Financial Policies

        • Monetary Policies

        • Debt Management

        • Measures to Influence International Capital Movements

        • Interest Rates

        • Fiscal Policies

    • 6. Economic Developments in the Primary Producing Countries

      • Prices of Primary Products

      • Trade of Primary Producing Countries

      • Causes of Price Movements

      • Domestic Developments

      • The Problem of Growth

    • 7. World Trade, Payments, and Reserves

      • World Trade

        • Manufacturing Countries

      • Balance of Payments Developments

        • Primary Producing Countries

      • Reserve Developments

    • 8. Balances of Payments of Selected Countries

      • United States

      • United Kingdom

      • Italy

      • France

      • Federal Republic of Germany

      • Japan

      • Other Manufacturing Countries

      • Argentina

      • Australia

      • Canada

      • India

      • Nigeria

    • 9. Gold and Soldilver

      • Gold Production

      • Gold Holdings

      • Gold Markets and Prices

        • New York

        • London

        • Other Developments

      • Gold Transactions Service

      • Changes in National Policies Affecting Gold

        • Gold Subsidy Programs

      • Silver

  • SUPPLEMENTARY NOTES

    • A. International Money and Security Markets

    • B. Incomes Policies

    • C. Export Performance of Manufacturing Countries

      • Growth of Export Markets

      • Market Growth and Actual Exports

      • Export Performance and Relative Price Changes

    • D. The Gold Pool

  • APPENDICES

    • I. Executive Board Decisions

      • A. Quota Increases: Gold Subscriptions

      • B. Gold Collateral Transactions

      • C. General Arrangements to Borrow: Association of Switzerland

      • D. Exchange Transactions Prior to the Establishment of Initial Par Value: Membership Resolutions

      • E. Exchange Transactions Prior to the Establishment of Initial Par Value

    • II. Executive Directors and Voting Power

    • III. Changes in Membership of Executive Board

    • IV. Administrative Budget

    • V. Comparative Statement of Income and of Total Administrative Expenditure

    • VI. Financial Statements of International Monetary Fund and Staff Retirement Fund

      • Letter of Transmittal

      • International Monetary Fund

        • Memorandum by the Audit Committee

        • Balance Sheet

        • Statement of Income and Expenditure

        • Statement of Reserves

      • Staff Retirement Fund

        • Memorandum by the Audit Committee

        • Balance Sheet

  • Index

  • LIST OF TABLES AND CHARTS

    • Table

      • 1. New Fund Members, Fiscal Year Ended April 30, 1964

      • 2. Increases in Quotas, Fiscal Year Ended April 30, 1964

      • 3. Initial Par Values Established, 1963

      • 4. Purchases of Currencies from the Fund, Fiscal Year Ended April 30, 1964

      • 5. Fund Stand-By Arrangements with Members, Fiscal Year Ended April 30, 1964

      • 6. Repurchase Obligations Under Article V, Section 7 (b), of the Fund Agreement, at April 30, 1948-63

      • 7. Repurchases of Currencies from the Fund, Fiscal Year Ended April 30, 1964

      • 8. Drawings and Repurchases by Currency, Fiscal Year Ended April 30, 1964

      • 9. Summary of Fund Transactions, Fiscal Years Ended April 30, 1948-64

      • 10. Primary Producing Countries: Trade in 1962 and 1963

      • 11. Selected Less Industrialized Countries: Percentage Changes in Money Supply, 1956-63, and Factors Affecting Changes in Money Supply, 1962 and 1963

      • 12. Export Unit Values, 1961-63

      • 13. Direction of World Trade, 1960-63

      • 14. Annual Increases in Value of Trade in Various Directions, 1961-63

      • 15. Trade of Manufacturing Countries

      • 16. Over-All Balances of International Payments, First and Second Half, 1962 and 1963

      • 17. Primary Producing Countries: Balance of Payments Summaries, 1962 and 1963

      • 18. Countries’ Official Reserves, Including Gold Tranche Positions in the International Monetary Fund, End of Calendar Years, 1960-63

      • 19. United States: Balance of Payments Summary, 1962–First Quarter 1964

      • 20. United Kingdom: Balance of Payments Summary, 1962–First Quarter 1964

      • 21. Italy: Balance of Payments Summary, 1962–First Quarter 1964

      • 22. Franc Area: Balance of Payments Summary, 1962 and 1963

      • 23. Federal Republic of Germany: Balance of Payments Summary, 1962–First Quarter 1964

      • 24. Japan: Balance of Payments Summary, 1962 and 1963

      • 25. Other Manufacturing Countries in Continental Europe: Balance of Payments Summaries, 1962 and 1963

      • 26. Argentina: Balance of Payments Summary, 1959-63

      • 27. Australia: Balance of Payments Summary, 1960-63

      • 28. Canada: Balance of Payments Summary, 1962 and 1963

      • 29. India: Balance of Payments Summary, 1960-63

      • 30. Nigeria: Balance of Payments Summary, 1960-63

      • 31. Gold: Value of World Production, 1940, 1945, and 1959-63

      • 32. World Gold Reserves: Sources of Changes, 1961-63

      • 33. United Kingdom: Imports and Exports of Gold, 1962-63

      • 34. Gold: Prices in Various World Markets, End of April 1963 and 1964

      • 35. Actual Growth in Each Manufacturing Country’s Exports Related to Average Growth in Its Export Markets, 1961-63

      • 36. Summary of the Comparison Between the Actual Growth in Countries’ Exports and the Estimated Growth in Their Markets, 1960-63

      • 37. Summary of the Changes in the Relation Between Each Country’s Export Unit Value and the Average Unit Value of Other Manufacturing Countries’ Exports, 1961-63

    • Chart

      • 1. Outstanding Balances of Drawings from the Fund, and Unused Stand-By Arrangements, on April 30, 1948-64

      • 2. All Countries’ Official Reserves, Imports, and Payments Imbalance, 1953-63

      • 3. International Liquidity: Countries’ Gold and Foreign Exchange Reserves and Positions in the International Monetary Fund, 1953-63

      • 4. Selected Countries’ Official Reserves, 1953-63

      • 5. Selected Areas and Countries: Industrial Production, Seasonally Adjusted, 1961–April 1964

      • 6. Selected Areas and Countries: Wage Rates, 1961–April 1964

      • 7. Selected Countries: Wage Costs Per Unit of Output in Manufacturing, 1961–First Quarter 1964

      • 8. Selected Areas and Countries: Wholesale Prices, 1961–April 1964

      • 9. Selected Areas and Countries: Cost of Living, 1961–April 1964

      • 10. Selected Areas and Countries: Export Prices, 1961–April 1964

      • 11. Selected Countries: Central Bank Discount Rates, 1961–April 1964

      • 12. Selected Countries: Short-Term Interest Rates, 1961–April 1964

      • 13. Selected Countries: Long-Term Government Bond Yields, 1961–April 1964

      • 14. United Kingdom: Term Interest Differentials, 1963–April 1964

      • 15. United Kingdom: Rates on Three-Month Deposits and Premium on Three-Month Forward Dollars, 1962–April 1964

      • 16. Primary Producing Countries: Prices of Commodities Exported (Excluding Petroleum), 1957-63

      • 17. Selected Primary Products: Changes in Average Prices from 1961 to 1962 and 1962 to 1963

      • 18. International Trade: Direction of Exports, 1960-63

      • 19. Manufacturing Countries: Seasonally Adjusted Trade Balances, 1960-63

      • 20. Selected Areas and Countries: Balances of Payments, 1956-63

      • 21. Primary Producing Countries: Balances on Account of Goods, Services, and Private Transfers, and Basic Balances, 1956-63

      • 22. Primary Producing Countries: Basic and Over-All Balances of Payments, 1956-63

      • 23. Selected Manufacturing Countries: Over-All Surpluses and Deficits, 1958-63

      • 24. Gold: Estimated Supply and Absorption, 1951-63

      • 25. Gold: Price in London Market, Monthly Averages, March 1954–April 1964

      • 26. Manufacturing Countries: Growth of Export Markets, 1960-63

      • 27. Manufacturing Countries: Relative Importance of Different Export Markets for Japan, United States, United Kingdom, Germany, Other EEC Countries, anl Other EFTA Countries

INTERNATIONAL MONETARY FUND

Pierre-Paul Schweitzer

Managing Director and Chairman of the Executive Board

Frank A. Southard, Jr.

Deputy Managing Director

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Directors of Departments and Offices

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LETTER OF TRANSMITTAL TO THE BOARD OF GOVERNORS

July 2, 1964

My dear Mr. Chairman:

In accordance with Section 10 of the By-Laws of the International Monetary Fund, I have the honor to present to the Board of Governors the Annual Report of the Executive Directors for the fiscal year ended April 30, 1964.

Yours sincerely,

/s/

Pierre-Paul Schweitzer

Chairman of the Executive Board

Chairman of the Board of Governors

International Monetary Fund