Title Page

Selected Decisions of the International Monetary Fund

and Selected Documents

SIXTH ISSUE

INTERNATIONAL MONETARY FUND

Washington, D.C., September 30, 1972

Contents

• PREFACE

• REFERENCE LIST OF DECISION NUMBERS

• INTERPRETATIONS UNDER ARTICLE XVIII (a)

• 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 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, 5, AND 8

  • 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))

    • Central Rates and Wider Margins: A Temporary Regime (3463-(71/126))

    • 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)

    • Rates for Computations and Adjustment of the Fund’s Holdings of Currencies (3637-(72/41) G/S)

• 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), as amended by 876-(59/15) and 1151-(61/6))

    • II. Stand-By Credit Arrangements

    • Stand-By Arrangements (876-(59/15))

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

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

    • 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-(69/47))

    • Fourth International Tin Agreement: Buffer Stock Financing Facility (3179-(70/102), 3351-(71/51))

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

    • Gold Tranche Purchases and Buffer Stock Financing Facility (3386-(71/83))

    • 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 1(b) (447-5)

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

    • Repurchase Obligations: Article V, Section 7(c) (iii) and (iv) and Schedule B, Paragraph 1(d) and (e) (3049-(70/44))

    • Voluntary Repurchases (7-(648))

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

• ARTICLE VI, SECTION 1

  • USE OF FUND’S RESOURCES FOR CAPITAL TRANSFERS (See also page 20)

• 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: First Extension of Association of Switzerland (2377-(67/85))

    • General Arrangements to Borrow: Second Extension of Association of Switzerland (3363-(71/60))

• 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))

  • PAYMENTS ARREARS (3153-(70/95))

  • MULTIPLE CURRENCY PRACTICES

    • Statement to Members Transmitting Fund’s Decisions on Multiple Currency Practices (237-2)

    • Multiple Currency Practices (649-(57/33))

    • Multiple Currency Practices and Exchange Rates: Fund Approval (3504-(71/134))

• 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 XII, SECTION 6

  • ESTABLISHMENT OF A GENERAL RESERVE FROM NET INCOME (753-(58/17))

• 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)

• ARTICLE XX, SECTION 4(i)

  • USE OF FUND’S RESOURCES: POSTPONEMENT UNDER ARTICLE XX, SECTION 4(i) (284-2)

• ARTICLE XXV, SECTION 6(a)

  • PRINCIPLES AND PROCEDURES FOR RECONSTITUTION (3457-(71/121) G/S)

• ARTICLE XXV, SECTION 7

  • USE OF SPECIAL DRAWING RIGHTS IN REPURCHASES AND PAYMENT OF CHARGES

    • Exclusion of Special Drawing Rights: Financial Year Ending April 30, 1970 (2901-(69/122) G/S)

    • Exclusion of Special Drawing Rights: Financial Years Ending April 30, 1971 and 1972 (3034-(70/38))

    • Exclusion of Special Drawing Rights: Financial Year Ending April 30, 1970 (3032-(70/38) G/S)

    • Exclusion of Special Drawing Rights: Financial Years Ending April 30, 1971 and 1972 (3320-(71/34) G/S)

    • Use of Special Drawing Rights in Repurchases Outside Article V, Section 7(b) (2901-(69/122) G/S, 3188-(70/106) G/S)

  • TRANSFER OF SPECIAL DRAWING RIGHTS HELD IN THE GENERAL ACCOUNT TO PARTICIPANTS MAKING PURCHASES FROM THE FUND (3414-(71/98) 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)

• ARTICLE XXXII (b) (2)

  • SPECIAL DRAWING ACCOUNT: CURRENCY CONVERTIBLE IN FACT

    • 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 (2965-(70/8) S)

    • Representative Exchange Rate: Netherlands Guilder (3338-(71/44) 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))

  • * * * *

  • Selected Resolutions of the Board of Governors

  • A. International Monetary System (Resolution No. 26-9)

  • B. Establishment of a Committee on Reform of the International Monetary System and Related Issues (Resolution No. 27-10)

  • Selected Documents

  • A. Agreement Between the United Nations and the International Monetary Fund

  • B. United Nations Convention on the Privileges and Immunities of the Specialized Agencies, Annex V, and List of Countries Which Have Accepted the Convention with Respect to the Fund as of September 30, 1972

  • Index

Preface

This volume, entitled “Selected Decisions of the International Monetary Fund and Selected Documents,” follows the Fifth Issue of “Selected Decisions of the Executive Directors and Selected Documents.” The change in title has been made because of the inclusion of more Resolutions of the Board of Governors of the Fund than in the preceding volume. The present volume contains selected decisions and interpretations of the Executive Directors and resolutions of the Board of Governors of the International Monetary Fund adopted prior to September 30, 1972, as well as 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 earlier issues (September 1962, September 1963, January 1965, April 1970, and July 1971), and general decisions taken since then. Decisions of the Executive Directors that are published in the By-Laws, Rules and Regulations are not included.

This collection will be kept up to date by the issue of later editions.

JOSEPH GOLD

General Counsel

and

Director, Legal Department

Reference List of Decision Numbers

Number		Page
2-	1	116
71-	2	16, 20
117-	1	119
124-	2	63
170-	3	2
180-	5	117
233-	2	7
237-	2	104
269-	2	11
278-	3	17
284-	2	126
284-	3	35
284-	4	20
286-	1	35
287-	3	21
292-	3	36
298-	3	2, 122
408-	2	1
411-	1	16
419-	1	64
446-	4	91
447-	5	63
486-	2	140
510-	2	141
534-	3	114
574-	2, as amended by 2620-(68/141)	116
595-	3	6
597-	4	117
7-	(648)	66
75-	(705)	8
102-	(52/11)	22
103-	(52/12)	143
119-	(52/30)	67
144-	(52/51)	93
155-	(52/57)	26
201-	(53/29)	96
270-	(53/95), as amended by 876-(59/15) and
1151-	(61/6)	28
316-	(54/27)	143
343-	(54/47)	120
433-	(55/42)	94
451-	(55/52)	21
541-	(56/39)	69
572-	(56/55)	144
649-	(57/33)	111
753-	(58/17)	118
876-	(59/15), see also
270-	(53/95)	31
904-	(59/32)	11
955-	(59/45)	98
1033-	(60/26)	144
1034-	(60/27)	99
1116-	(60/51)	145
1151-	(61/6), see 270-(53/95)
1238-	(61/43)	20
1289-	(62/1)	70
1345-	(62/23), as amended by 2620-(68/141)	34
1371-	(62/36)	36
1477-	(63/8), as amended by 2192-(66/81)	42
1543-	(63/39)	52
1687-	(64/22)	56
1712-	(64/29)	84
1951-	(65/54)	83
2192-	(66/81), see 1477-(63/8)
2377-	(67/85)	87
2493-	(68/74)	121
2603-	(68/132)	32
2620-	(68/141), see 574-2 and 1345-(62/23)
2772-	(69/47)	47
2836-	(69/87)	50
2858-	(69/96)	84
2901-	(69/122) G/S	128, 130
2914-	(69/127)	57
2916-	(69/127)	62
2918-	(69/128) S	133
2955-	(70/8) S	133
2956-	(70/8) S	133
2957-	(70/8) S	134
2958-	(70/8) S	134
2959-	(70/8) S	135
2960-	(70/8) S	135
2961-	(70/8) S	136
2962-	(70/8) S	135
2963-	(70/8) S	137
2964-	(70/8) S	136
2965-	(70/8) S	138
2966-	(70/8) S	137
2988-	(70/19) S	138
3006-	(70/24)	34
3010-	(70/25) G/S	132
3032-	(70/38) G/S	129
3034-	(70/38)	128
3049-	(70/44)	64
3153-	(70/95)	102
3179-	(70/102)	48
3188-	(70/106) G/S	130
3320-	(71/34) G/S	129
3338-	(71/44) S	138
3351-	(71/51)	49
3363-	(71/60)	89
3386-	(71/83)	51
3414-	(71/98) G/S	131
3457-	(71/121) G/S	127
3463-	(71/126)	12
3504-	(71/134)	113
3637-	(72/41) G/S	17

View Table

Number		Page
2-	1	116
71-	2	16, 20
117-	1	119
124-	2	63
170-	3	2
180-	5	117
233-	2	7
237-	2	104
269-	2	11
278-	3	17
284-	2	126
284-	3	35
284-	4	20
286-	1	35
287-	3	21
292-	3	36
298-	3	2, 122
408-	2	1
411-	1	16
419-	1	64
446-	4	91
447-	5	63
486-	2	140
510-	2	141
534-	3	114
574-	2, as amended by 2620-(68/141)	116
595-	3	6
597-	4	117
7-	(648)	66
75-	(705)	8
102-	(52/11)	22
103-	(52/12)	143
119-	(52/30)	67
144-	(52/51)	93
155-	(52/57)	26
201-	(53/29)	96
270-	(53/95), as amended by 876-(59/15) and
1151-	(61/6)	28
316-	(54/27)	143
343-	(54/47)	120
433-	(55/42)	94
451-	(55/52)	21
541-	(56/39)	69
572-	(56/55)	144
649-	(57/33)	111
753-	(58/17)	118
876-	(59/15), see also
270-	(53/95)	31
904-	(59/32)	11
955-	(59/45)	98
1033-	(60/26)	144
1034-	(60/27)	99
1116-	(60/51)	145
1151-	(61/6), see 270-(53/95)
1238-	(61/43)	20
1289-	(62/1)	70
1345-	(62/23), as amended by 2620-(68/141)	34
1371-	(62/36)	36
1477-	(63/8), as amended by 2192-(66/81)	42
1543-	(63/39)	52
1687-	(64/22)	56
1712-	(64/29)	84
1951-	(65/54)	83
2192-	(66/81), see 1477-(63/8)
2377-	(67/85)	87
2493-	(68/74)	121
2603-	(68/132)	32
2620-	(68/141), see 574-2 and 1345-(62/23)
2772-	(69/47)	47
2836-	(69/87)	50
2858-	(69/96)	84
2901-	(69/122) G/S	128, 130
2914-	(69/127)	57
2916-	(69/127)	62
2918-	(69/128) S	133
2955-	(70/8) S	133
2956-	(70/8) S	133
2957-	(70/8) S	134
2958-	(70/8) S	134
2959-	(70/8) S	135
2960-	(70/8) S	135
2961-	(70/8) S	136
2962-	(70/8) S	135
2963-	(70/8) S	137
2964-	(70/8) S	136
2965-	(70/8) S	138
2966-	(70/8) S	137
2988-	(70/19) S	138
3006-	(70/24)	34
3010-	(70/25) G/S	132
3032-	(70/38) G/S	129
3034-	(70/38)	128
3049-	(70/44)	64
3153-	(70/95)	102
3179-	(70/102)	48
3188-	(70/106) G/S	130
3320-	(71/34) G/S	129
3338-	(71/44) S	138
3351-	(71/51)	49
3363-	(71/60)	89
3386-	(71/83)	51
3414-	(71/98) G/S	131
3457-	(71/121) G/S	127
3463-	(71/126)	12
3504-	(71/134)	113
3637-	(72/41) G/S	17

Interpretations Under Article XVIII (A)

Interpretation of Articles of Agreement (71-2)

Extent of Drawing Rights: Meaning of Article V, Section 3(a) (iii) (451-(55/52))

Unenforceability of Exchange Contracts: Fund’s Interpretation of Article VIII, Section 2(b) (446-4)

Interpretation of Article IX, Section 7 (534-3)

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

Interpretation of Article XV, Section 2 (343-(54/47))