Chapter

Appendix I: DECISION ON EXTENT OF DRAWING RIGHTS-MEANING OF ARTICLE V, SECTION 3(a)(iii)

Author(s):
International Monetary Fund
Published Date:
September 1956
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The Executive Board, acting pursuant to Article XVIII(a) of the Fund Agreement, interprets the quantitative limit of twenty-five per cent of quota in relation to drawing rights under Article V, Section 3(a)(iii) as follows:

Where the Fund’s holdings of a member’s currency are not less than seventy-five per cent of its quota, and to the extent that such holdings would not be increased above two hundred per cent of its quota, the purchases which the member may make during a period of twelve months ending on the date of a proposed purchase shall be determined as follows:

  • (a) The total purchases shall not exceed twenty-five per cent of its quota;

  • (b) Provided that, if the member has made purchases during the period, it may then purchase an amount equal to the difference between twenty-five per cent of its quota and the total of such purchases adjusted on the basis that a repurchase by the member or sale of its currency during the period is deducted from a previous, but not subsequent, purchase or purchases during the period.

August 24, 1955

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