1. Where on any April 30 the Fund holds a member’s currency in an amount exceeding 75 per cent of the member’s quota, the member shall make a provisional monetary reserves report to the Fund not later than May 31, preferably by cable.
IN many respects the past year was a highly satisfactory one for the world economy. World industrial production and, in particular, international trade—including the exports of the primary producing countries—were substantially higher than in the preceding year. However, within 1964 there was a slowing down of economic activity in several major countries, and the rate of increase in world trade was somewhat lower than during the preceding year, although still substantial. In the last quarter of the year, while there were signs of a moderate upturn in industrial activity, an exceptionally large imbalance in world payments, concentrated in the two main reserve centers, put more strain on the international monetary system than had been experienced for some time. For all these reasons, economic prospects at the end of the year appeared much more uncertain.
IN recent years, there has been increasing discussion in official, financial, and academic circles of the present international monetary system. This system comprises a spectrum of customary institutional and legal arrangements which govern the conduct of international economic transactions, the methods of financing deficits and surpluses in international payments, and the manner in which countries are expected to respond to such deficits and surpluses.
IN its relations with developing countries, as with other members, the Fund is guided primarily by a desire to implement the purposes outlined in the first of its Articles of Agreement, and in particular