SUPPLEMENTARY NOTE
Author:
International Monetary Fund
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English
Print Publication Date:
01 Sep 1965
Keywords:
AR; AREA; sc; fund transaction; fund's holding; fund representative; fund member; fund staff; Currencies; Reserve assets; Gold; Africa
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Abstract

THIS note supplements the information given in Chapter 4 about the activities of the Fund during the past year.

Activities of the Fund

THIS note supplements the information given in Chapter 4 about the activities of the Fund during the past year.

Par Values

Initial par values were established by agreement between the Fund and three members during the fiscal year, as shown in Table 46.

Table 46

Initial Par Values Established, Fiscal Year Ended April 30, 1965

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Article VIII Countries

It was noted earlier (p. 31) that Australia, Costa Rica, and Nicaragua have been added to the countries that have accepted the obligations of Article VIII, Sections 2, 3, and 4. The 27 countries that had accepted these obligations down to July 1, 1965 are listed in Table 47.

Quotas

The quotas of 11 Fund members were increased during the fiscal year 1964/65. The countries concerned, their previous quotas, their new quotas, and the effective dates of their quota increases are shown in Table 48.

The increases for Jordan, Luxembourg, and Tunisia were the fifth, and final, installments of their quota increases by installments, to which they had consented under the 1959 Resolutions on the Enlargement of Fund Resources. The increase for Malaysia was the first of three equal installments by which its quota will be increased to $100 million. The increases for Ceylon, Costa Rica, Ghana, Iraq, and Sudan were approved under the terms of the Fund’s Decision on the Compensatory Financing of Export Fluctuations, which provides that the Fund is willing to give sympathetic consideration to requests for quota adjustments from countries exporting primary products, especially those with relatively small quotas.1

Table 47.

Countries That Have Accepted Article VIII

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During the fiscal year, four other quota increases under the terms of the Compensatory Financing Decision were approved by the Board of Governors: Guatemala, from $15 million to $20 million; Saudi Arabia, from $55 million to $72 million; the Syrian Arab Republic, from $25 million to $30 million; and Thailand, from $45 million to $76 million. These increases become effective when the members concerned notify the Fund that they consent to the increases. In the period May 1-June 30, 1965, notifications were received from Guatemala, Saudi Arabia, and Thailand. In that same period the Board of Governors approved, under the terms of the Compensatory Financing Decision, increases in the quotas of Iraq, from $55 million to $64 million, and of Jordan, from $11.25 million to $12.25 million.

Table 48.

Increases in Quotas, Fiscal Year Ended April 30, 1965

(In millions of U.S. dollars)

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Table 49

Purchases of Currencies from the Fund, Fiscal Year Ended April 30, 1965

(In millions of U.S. dollars)

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Fund Transactions

Table 49 lists the purchases of currencies from the Fund during the year, Table 50 Table 50 the position of each participant in the General Arrangements to Borrow after the completion of the two transactions with the United Kingdom discussed in Chapter 4, and Table 51 the currencies purchased with gold in connection with these transactions. Table 52 gives details of stand-by arrangements in force during the fiscal year. Some particulars of these arrangements follow.

Table 50

Position of Participants in General Arrangements to Borrow

(In millions of U.S. dollars)

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Table 51

Currencies Purchased by the Fund with Gold, December 1964 and May 1965

(In millions of U.S. dollars)

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Table 52

Fund Stand-By Arrangements with Members, Fiscal Year Ended April 30, 1965

(In millions of U.S. dollars)

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Canceled on August 31,1964.

Canceled on January 5,1965.

Canceled on January 18,1965.

Brazil

In January 1965, the Fund agreed to a standby arrangement with Brazil authorizing purchases equivalent to $125 million; $75 million had been drawn by June 30. The purpose of the arrangement is to support the efforts of the Brazilian authorities to bring about a sharp reduction in the rate of inflation, to achieve a better balance of external accounts, and to facilitate the country’s further economic development, as discussed in Chapter 8.

Burundi

Also in January 1965 a stand-by arrangement for $4 million was agreed with Burundi in conjunction with the establishment of an initial par value for the Burundi franc and the introduction of a comprehensive set of stabilization measures. Under the stand-by arrangement, $2 million was drawn by Burundi in April.

Costa Rica

In conjunction with Costa Rica’s acceptance of the obligations of Article VIII, Sections 2, 3, and 4, the Fund agreed in February 1965 to a standby arrangement which permits Costa Rica to purchase from the Fund currencies equivalent to $10 million; the equivalent of $5 million had been drawn by June 30. The arrangement was designed to provide additional resources to support the efforts of Costa Rica to maintain financial stability and preserve the convertibility of the colón.

Dominican Republic

A stand-by arrangement with the Dominican Republic for the equivalent of $25 million was introduced in August 1964 to support the Government’s policies in the fields of exchange, taxation, and monetary control, aimed at strengthening the country’s balance of payments, stabilizing internal costs and prices, bringing about an early settlement of outstanding payment arrears, and restoring full convertibility of the peso. Under the arrangement, $20 million had been drawn by June 30.

India

A stand-by arrangement with India, agreed in March 1965, authorizes purchases of currencies equivalent to $200 million; $150 million had been drawn by June 30. The arrangement was designed to strengthen India’s reserve position and support the efforts being made by the authorities to overcome the country’s balance of payments difficulties. These efforts include the introduction of higher rates of interest, restraints on the expansion of bank credit, the imposition of a regulatory duty on certain imports, and the adoption of a budget aimed at providing a better balance in the Government’s own financial accounts.

Korea

A stand-by arrangement with Korea, also entered into in March 1965, authorizes drawings equivalent to $9.3 million, to reinforce Korea’s foreign exchange reserves and support the steps being taken by the Korean authorities to reform the present exchange system and relax restrictions on trade and payments. No drawing under this arrangement was made in the fiscal year.

Mali

A stand-by arrangement with Mali, introduced in July 1964, permits drawings equivalent to $9.9 million and provides support for a comprehensive stabilization program introduced by the Mali authorities. The full amount available under the arrangement has been drawn.

Pakistan

In March 1965 the Fund entered into a standby arrangement with Pakistan, authorizing drawings up to a total of $37.5 million. Pakistan’s foreign exchange reserves had been declining as a result of a sharp rise in its imports, associated with an import liberalization program and also reflecting a substantial increase in bank credit, especially in the private sector. The stand-by arrangement will assist Pakistan to meet its temporary balance of payments difficulties while taking appropriate steps to restore external equilibrium. Nothing was drawn under this arrangement during the fiscal year.

Paraguay

A stand-by arrangement with Paraguay, agreed in November 1964, authorizes drawings equivalent to $5 million. It is intended to provide support for the country’s reserve position in the event of temporary balance of payments difficulties and to assist in the country’s efforts to accelerate economic growth in conditions of monetary stability. Paraguay did not find it necessary to draw under the arrangement during the fiscal year.

Somalia

Under its first stand-by arrangement, effective from May 1, 1964, Somalia drew a total of $4.7 million, which was the full amount available. This arrangement was canceled on January 18, 1965 and a new arrangement permitting drawings equivalent to $5.6 million was agreed, effective from January 19, under which the equivalent of $3 million had been drawn by June 30. Both arrangements were in support of a unified and liberal exchange and trade control system being established by Somalia.

Tunisia

The stand-by arrangement with Tunisia, agreed in October 1964, authorizes drawings up to $14.25 million; the equivalent of $11.25 million had been drawn by June 30. The arrangement will support stabilization measures introduced by the Tunisian authorities, aimed at an improvement in the balance of payments and the restoration of financial stability while at the same time allowing a satisfactory rate of growth of the Tunisian economy. These measures accompanied the establishment of a par value which effectively devalued the dinar by some 20 per cent.

United Arab Republic

To provide financial support for the renewed efforts being made by the United Arab Republic to stabilize its economy, the Fund agreed to a stand-by arrangement in May 1964 permitting purchases equivalent to $40 million; the full amount has been drawn.

In addition to the stand-by arrangements already discussed, arrangements were agreed during the year with Bolivia, Chile, Ecuador, Haiti, Honduras, Liberia, Peru, the Philippines, and Turkey. All were in continuation of the financial support that the Fund had accorded in the preceding year. Those with Bolivia, Chile, and Ecuador replaced arrangements for smaller amounts; those with Haiti, Honduras, Peru, the Philippines, and Turkey replaced arrangements for similar amounts; and that with Liberia replaced a larger one.

The stand-by arrangements agreed during the year were all for a period of one year, except that with Turkey, which was for 11 months.

Any drawing or stand-by arrangement that would increase the Fund’s holdings of a member’s currency by more than 25 per cent of its quota within any 12-month period (except to the extent that the Fund’s holdings of the member’s currency are less than 75 per cent of its quota) requires a waiver under Article V, Section 4, of the Articles of Agreement. During the fiscal year, waivers for this purpose were required for all the stand-by arrangements except those with Turkey and the United States. However, no purchases made during the year, other than those under stand-by arrangements, required a waiver.

Repurchases

During 1964/65, 25 members made repurchases equivalent to $517 million (Table 53). Of these members, 12 were in the Western Hemisphere, 4 in Europe, 4 in the Middle East, 4 in Asia, and 1 in Africa. Article V, Section 1(b), of the Articles of Agreement provides that a member shall repurchase annually an amount of the Fund’s holdings of its currency in excess of 75 per cent of its quota, equivalent to one half of any increase in the Fund’s holdings of its currency that has occurred during the Fund’s financial year, plus or minus one half of any increase or decrease in its monetary reserves during the same period. Repurchases effected pursuant to Article V, Section 1(b), are discussed below (p. 113). Of the repurchases not made pursuant to Article V, Section 7(b), most were made on dates when repayments became due, in accordance with schedules to which members had committed themselves, either at the time of their purchases from the Fund or later. Improvements in the monetary reserves positions of several members enabled them to make repurchases before the expiration of the period for which their drawings had been made available, thus

Table 53

Repurchases of Currencies from the Fund, Fiscal Year Ended April 30, 1965

(In millions of U.S. dollars)

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Less than $5,000.

Total does not equal sum of items because of rounding.

strengthening their secondary line of reserves in the form of potential recourse to the Fund’s resources. The drawing by Italy in 1963/64 and the drawing by Canada in 1962/63 have been completely reversed through repurchases by the members and through sales of Italian lire and Canadian dollars by the Fund to other members.

On the other hand, because of balance of payments difficulties, 6 members were unable to meet their repurchase commitments to the Fund when they fell due. The Executive Board agreed to new repurchase schedules for 5 of these members. Under these schedules, repurchases are to be made not later than 5 years from the purchase date. The commitments of 4 members were related to purchases made under stand-by arrangements with undertakings to repurchase within 3 years from the date of purchase. Those of the fifth member related to a purchase under a stand-by arrangement and to another purchase, made initially with a 6-month repurchase commitment, to which postponements had been agreed by the Executive Board on three previous occasions. One member’s payment of the repurchase obligation that it had incurred under Article V, Section 7(b), as at April 30, 1964 was postponed until July 1965 to coincide with the member’s commitment to repurchase in respect of a purchase made under a stand-by arrangement.

In addition, when the Fund’s holdings of the currencies of 3 members that had undertaken to repurchase within 3 to 5 years in compliance with the Executive Board Decision on the Use of Fund’s Resources and Repurchases, adopted on February 13, 1952,2 had not been reduced correspondingly after 3 years, these members submitted repurchase schedules providing for repurchases within 5 years from each purchase, and the Fund agreed to these schedules.

Purchases and Repurchases by Currency

Purchases and repurchases during the year ended April 30, 1965 are classified by currency in Table 54, in which the largest drawings, the equivalent of $1,000 million by the United Kingdom and of $475 million by the United States, and repurchases equivalent to $107.15 million by Canada and $65.34 million by Italy are shown separately. Mainly as a result of these transactions, the Fund’s holdings of sterling rose to 125.6 per cent of quota on April 30, 1965; its holdings of U.S. dollars rose to 82.8 per cent; its holdings of Canadian dollars were reduced by the equivalent of US$210 million, from 96 per cent to 58 per cent; and its holdings of Italian lire were reduced by the equivalent of $120 million, to 64 per cent of quota. The Fund’s holdings of Austrian schillings became proportionately the lowest Fund holdings of any currency, falling, by the equivalent of $25 million, to 3½ per cent of the member’s quota by April 30, 1965, and the Fund’s holdings of deutsche mark fell by the equivalent of $59.4 million, to 11.4 per cent. During the year there was a net use of the equivalent of $25 million of Australian pounds, $18 million of Belgian francs, $48.6 million of French francs, $25 million of Japanese yen, $5 million of Mexican pesos, $6 million of Netherlands guilders, $40 million of Spanish pesetas, and $15 million of Swedish kronor.

Table 54

Drawings and Repurchases by Currency, Fiscal Year Ended April 30, 1965

(In millions of U.S. dollars)

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Including discharges in respect of previous years.

Total does not equal sum of items because of rounding.

The peseta is not formally convertible and cannot be accepted for repurchases.

Monetary Reserves and Repurchase Obligations

In accordance with Executive Board Decision No. 1510-(63/23), adopted on May 3, 1963, each member, the amount of whose currency held by the Fund on any April 30 exceeds 75 per cent of its quota, is required to report provisional monetary reserves data to the Fund not later than the following May 31.3 Furthermore, Rule I-6 of the Fund’s Rules and Regulations requires all members to provide final monetary reserves data to the Fund within six months of the end of each financial year of the Fund, i.e., by October 31.

On April 30, 1964 the above-mentioned decision applied to 39 members. Repurchase obligations for 10 members were calculated on a provisional basis, and the same 10 members subsequently incurred repurchase obligations calculated on a final basis. Their total amounted to the equivalent of $4,344,368.05, which was payable in gold and convertible currencies, as indicated in Table 55. This table sets out the total net repurchase obligations incurred by members under Article V, Section 7(b), since the inception of the Fund. It reflects the fact that Canadian dollars, Salvadoran colones, Guatemalan quetzales, Honduran lempiras, Italian lire, and U.S. dollars could not be accepted by the Fund in discharge of repurchase obligations incurred on April 30, 1964, since on that date the Fund’s holdings of each of these currencies were above 75 per cent of the respective member’s quota. As a result, an amount equivalent to $20,292,923.73 was abated. Further, repurchase obligations in pounds sterling could be discharged only to the extent that the Fund’s holdings of that currency on April 30, 1964 were below 75 per cent of the U.K. quota; of the repurchase obligations that accrued in this currency an amount equivalent to $1,140,702.68 was abated. Simultaneously, the limitation on repurchase obligations imposed by Article V, Section 7(c) (i), which provides that repurchases shall not be carried to a point at which the repurchasing member’s monetary reserves are below its quota, has become applicable to a wider extent as members’ quotas have been increased. Of the total gross repurchase obligations at April 30, 1964, calculated on a final basis, no less than 83 per cent was abated.

Table 55

Repurchase Obligations Under Article V, Section 7(b), of the Fund Agreement, at April 30, 1948–64

(In thousands of U.S. dollars)

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Includes the equivalent of $22,000 in Italian lire, $49,000 in Netherlands guilders, and $28,000 in Swedish kronor.

Includes the equivalent of $56,000 in Austrian schillings, $148,000 in Belgian francs, and $332,000 in Netherlands guilders.

At the end of October 1964, a total of 32 members had not submitted monetary reserves data. Most of these were new Fund members in the process of establishing reporting systems to collect the information necessary to comply with the Fund’s requirements. By the end of April 1965, data from 9 members were still outstanding. None of these members could have incurred a repurchase obligation at April 30, 1964, as the currencies of 8 members were not held by the Fund on that date, and the Fund’s holdings of the ninth member’s currency were below 75 per cent of the member’s quota.

Summary of Transactions, 1948-65

Between the inception of Fund operations and April 30, 1965, 58 members purchased currency from the Fund and 3 other members had standby arrangements without drawing under them. Of these 61 members, 20 were in Central and South America, 14 in Europe, 9 in Africa, 8 in the Far East and Western Pacific, 7 in the Middle East, and 3 in North America. Total sales by the Fund were equivalent to $9.37 billion. The transactions are summarized in Table 56. Drawings outstanding at April 30 in each year, together with the amounts available (but not used) under stand-by arrangements on the same date, are shown in Chart 30.

By April 30, 1965, drawings made by 47 members had been wholly or partly reversed, either through repurchases in gold or convertible currencies or as a result of purchases of their currencies by other members. On that date the total amount of members’ purchases still outstanding was equivalent to US$2,789.3 million: the amounts drawn had been outstanding for the following periods:

Chart 30.
Chart 30.

Outstanding Balances of Drawings from the Fund, and Unused Stand-By Arrangements, on April 30, 1948–65

(In millions of U.S. dollars)

1 United States included in 1964 and 1965 only.2 Belgium, Canada, Denmark, France, Italy, Japan, Netherlands, and Norway.
Table 56

Summary of Fund Transactions, Fiscal Years Ended April 30, 1948–65

(In millions of U.S. dollars)

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Totals may not equal sums of items because of rounding.

Including $281.6 million repurchased in excess of drawings. Of this amount, $257.5 million represents repurchases that reduced the Fund’s holdings of members’ currencies below the amounts originally paid on subscription account, and $24.1 million represents repurchases of members’ currencies paid as charges. Repurchases do not include sales of currencies equivalent to $1,067.2 million offset by adjustments of $8.7 million, making a net total of $1,058.5 million having the effect of repayment.

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Fund Charges

Currently, 26 members are paying the charges levied by the Fund on its holdings of members’ currencies in excess of their quotas; the amount of such charges incurred during the year totaled $35.9 million, compared with $31.5 million during the preceding year. Since the beginning of the Fund’s operations, 48 members have been subject to such charges. At present, part of these charges is paid by 4 members in their own currencies, in accordance with Article V, Section 8(f), of the Fund Agreement, which permits such payments if a member’s monetary reserves are less than half of its quota. The present schedule of charges to be levied on the Fund’s holdings of a member’s currency in excess of quota, which has been in effect from May 1, 1963, was reviewed by the Executive Board and extended until April 30, 1966. The schedule is reproduced in each issue of International Financial Statistics. Service charges on drawings totaled $9.5 million during the year under review, compared with $3.1 million in 1963/64. Charges collected on stand-by arrangements, after deduction of the amounts credited against service charges if and when drawings were made under the arrangements, and of refunds resulting from changes in the level of the Fund’s holdings of members’ currencies that re-created or increased the member’s gold tranche, totaled $0.9 million during the year ended April 30, 1965. These charges are not considered as income until the expiration or cancellation of the stand-by arrangement; the income derived from them in the past fiscal year was $2.1 million. Charges paid by the Fund in accordance with paragraph 9(a) of the General Arrangements to Borrow amounted to $2 million, and interest paid by the Fund in accordance with paragraph 9(b) amounted to a total of $2.5 million. Both charges and interest were paid in gold.

Consultations with Members

Member countries that are availing themselves of transitional arrangements in accordance with Article XIV, Section 2, of the Fund Agreement are required by that Article to consult with the Fund annually on the retention of their exchange restrictions. These consultations have continued to provide opportunities for the examination of the economic and financial problems that have given rise to restrictive and discriminatory practices, and the Fund has again continued its endeavors to help in the elimination of such practices. Several of the consultations under Article XIV have been combined with discussions of new financial programs or have included reviews of such programs already being implemented. During the fiscal year 1964/65, consultations under Article XIV were concluded with 43 countries; with others, the procedure had been initiated but had not been completed by the end of the fiscal year.

Consultations were also held with 22 members that have accepted the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement. Consultations with one Article VIII country were still in progress at the end of the fiscal year. The Executive Board Decision No. 1034-(60/27) of June 1, 19604 stressed the merit of holding periodic discussions between the Fund and its members even if no question involving action under Article VIII should arise. These discussions include exchanges of views on monetary and fiscal developments and enable the Fund to further the objective of securing the fullest possible degree of consultation and collaboration on international monetary problems.

Relations with Other International Organizations

As in previous years, many of the organizations which have responsibilities in fields related to the Fund’s, and with which the Fund maintains particularly close contacts—the United Nations (UN), the Contracting Parties to the General Agreement on Tariffs and Trade (GATT), the Organization for Economic Cooperation and Development (OECD), the Bank for International Settlements (BIS), and the Inter-American Development Bank (IDB)—were represented at the joint Annual Meetings in Tokyo of the Fund and the International Bank for Reconstruction and Development (IBR D), with which the Fund has a special relationship. During the fiscal year, Fund representatives attended meetings of these organizations and continued direct working relationships with their staffs.

The Managing Director of the Fund addressed the 38th Session of the UN Economic and Social Council (ECOSOC), at which the Annual Report of the Fund was presented. Fund representatives attended, among other UN meetings, the 19th Session of the General Assembly, the 37th and 38th Sessions of ECOSOC, the 13th and 14th Sessions of the Governing Council of the Special Fund, meetings of the Economic Commissions for Africa, Asia and the Far East, Europe, and Latin America, and the 1st Session of the newly created UN Trade and Development Board. The Managing Director and the Deputy Managing Director attended meetings of the UN Administrative Committee on Coordination, and Fund representatives participated in meetings of its Preparatory Committee and subsidiary Consultative Committees. Members of the staff participated in meetings of the UN Inter-Regional Workshop on Problems of Budget Classification and Management in Copenhagen, the Inter-Agency Meeting on Selected Management Problems in Paris, and the Conference of European Statisticians’ Working Group on National Accounts and Balances in Geneva. In the area of commodities, a Fund representative attended the International Tin Conference in New York and meetings in Washington of the International Rubber Study Group’s Management Committee and the International Cotton Advisory Commitee.

The Fund, in cooperation with the IBRD, assisted the UN Economic Commission for Africa in making arrangements for, and was represented at, a meeting of African monetary authorities in Tokyo, held after the joint Annual Meetings, and Fund representatives attended the inaugural meeting of the African Development Bank in Lagos.

Following the extension of existing arrangements for cooperation with the OECD, Fund representatives have attended meetings of its Economic Policy Committee’s Working Party 3, which is concerned with policies for the promotion of better international payments equilibrium. The Managing Director and other Fund representatives attended meetings of the BIS in Basle.

In Latin America, Fund representatives attended the third annual meetings in Lima of the Organization of American States (OAS) Inter-American Economic and Social Council at the Expert and Ministerial Levels, the sixth annual meeting of the Board of Governors of the IDB in Asunciön, and the first Regional Meeting of Latin American’Bankers in Mar del Plata, Argentina; participated informally in an advisory capacity in a series of meetings of the Inter-American Committee on the Alliance for Progress (CIAP) held in Washington; and participated in the eighth operational meeting of the Latin American Center for Monetary Studies (CEMLA) in Caracas.

A Fund staff member attended the 51st Conference of the International Law Association in Tokyo.

Fund representatives have attended sessions and other meetings of the Contracting Parties to the GATT in Geneva. The Contracting Parties consulted the Fund in connection with their consideration of import restrictions maintained by individual countries for balance of payments reasons, as well as in other connections where balance of payments or exchange matters were involved. The Fund transmitted to the Contracting Parties the decisions and background material resulting from its own consultations with various governments consulting under the balance of payments provisions of the GATT; Fund representatives cooperated with the Committee on Balance of Payments Restrictions and with other GATT bodies dealing with related matters.

Staff

At the end of the fiscal year, the Fund staff numbered 674, including 19 temporary employees and 1 on extended leave. This total represents a net increase of 79 over the total at the beginning of the year. During the year, 153 new staff members were appointed from 42 member countries. Nationals of 64 countries are now on the staff.

The Exchange Restrictions Department has been reorganized and renamed the Exchange and Trade Relations Department, in consideration of a number of changes in its role and responsibilities. It will continue to work in the field of exchange restrictions and multiple currency practices. In addition, it will study and evaluate the Fund’s activities with regard to exchange reforms, stabilization policies, and stand-by arrangements and will be concerned with a number of other matters, including regional payments arrangements and debt renegotiations. The Department will be primarily responsible for the Fund’s collaboration with the GATT and with the United Nations Conference on Trade and Development (UNCTAD), which was established in January 1965 as an organ of the UN General Assembly.

Publications

The Fund’s regular program of publications was continued in 1964-65: Annual Report of the Executive Directors for the Fiscal Year Ended April 30, 1964 (Nineteenth Annual Report), with shortened versions in French, German, and Spanish; Balance of Payments Yearbook, Volume 16, 1959-63; Fifteenth Annual Report on Exchange Restrictions; International Financial News Survey, weekly; International Financial Statistics, monthly, Supplement to 1964/65 Issues, and Supplement on Money; Schedule of Par Values, 38th and 39th issues; Staff Papers, Volume XI, Nos. 2 and 3, and Volume XII, No. 1; and Summary Proceedings of the Nineteenth Annual Meeting of the Board of Governors.

In conjunction with the International Bank for Reconstruction and Development, the Fund published Direction of Trade, monthly, and Finance and Development, quarterly (English, French, and Spanish editions).

Other publications of the Fund in 1964-65 were Selected Decisions of the Executive Directors and Selected Documents (third issue, January 1965—previously entitled Selected Decisions of the Executive Directors) and four pamphlets descriptive of the Fund’s activities: Introduction to the Fund; The International Monetary Fund: Its Form and Functions; The International Monetary Fund and Private Business Transactions: Some Legal Effects of the Articles of Agreement; and The International Monetary Fund and International Law: An Introduction. All these pamphlets have been published in English and some in French and Spanish; French and Spanish translations of the others are in preparation.

All the above are available without charge except for the Balance of Payments Yearbook, International Financial Statistics (and Supplements), Staff Papers, and Direction of Trade, which are available by subscription. Hitherto these publications have cost a total of $33.50 a year to general subscribers and $30.50 a year to universities; they have now been made available to university libraries, faculties, and students at the special rate of $3 a year for any one of them or $10 a year for all four.

Administrative Finance

During the financial year, the Fund’s operating income, equivalent to $47.7 million, exceeded its total expenditure by $25.5 million. This amount was transferred provisionally to the General Reserve pending action by the Board of Governors. The General Reserve now totals the equivalent of $141.8 million.

The Fund continued to invest a part of its gold holdings in U.S. Government securities, with the understanding that the same quantity of gold can be reacquired whenever the investment is terminated. The amount so invested was $800 million. The income therefrom amounted to $30.75 million for the financial year; it was credited to a Special Reserve, which showed a balance of $148.3 million on April 30, 1965.

The administrative budget approved by the Executive Directors for the period May 1, 1965-April 30, 1966 is presented in Appendix IV. Comparative income and expenditure figures for the fiscal years ended 1963, 1964, and 1965 are given in Appendix V.

The Executive Board requested the Governments of El Salvador, Thailand, and the United Kingdom to nominate members of the Audit Committee for 1965. The following nominations were made and confirmed: Mr. Juan Samuel Quinteros, Superintendent, Superintendency of Banks and Other Financial Institutions, Central Bank of El Salvador; Mr. Panas Simasathien, Chief of Accounting and Fiscal Systems Division, Comptroller General’s Department, Ministry of Finance, Thailand; Mr. Ronald William Tizard, Deputy Director of Audit, Exchequer and Audit Department, United Kingdom. The report of the Committee is submitted separately. Appendix VI gives the Auditors’ Certificate, together with the audited Balance Sheet as at April 30, 1965 and the audited Statement of Income and Expenditure for the financial year.

1

Selected Decisions, pages 40-43.

2

Decision No. 102-(52/11); see Selected Decisions, pages 21-24.

3

This procedure was confirmed, after review by the Executive Directors, by Decision No. 1813-(65/4), adopted on January 18, 1965 (reproduced in Appendix I, below, and in Selected Decisions, p. 53).

4

Selected Decisions, pages 81-83.

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Cover International Monetary Fund Annual Report 1965
International Monetary Fund Annual Report 1965
ISBN:
9781616351779
ISSN:
2227-8915
Publication Date:
01 Sep 1965
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781616351779.011
Pages:
174
  • Chart 30.
    View in gallery
    Chart 30.

    Outstanding Balances of Drawings from the Fund, and Unused Stand-By Arrangements, on April 30, 1948–65

    (In millions of U.S. dollars)

Chart 30.

Outstanding Balances of Drawings from the Fund, and Unused Stand-By Arrangements, on April 30, 1948–65

(In millions of U.S. dollars)