Chapter

Supplementary Notes

Author(s):
International Monetary Fund
Published Date:
September 1967
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A. Activities of the Fund

This note sets forth, in somewhat more detail than given in Chapter 5, information about the activities of the Fund during the past year and provides some statistics on its operations since its inception.

Membership

Fund membership rose to 106 during 1966/67, with the admission of two new members and the readmission of one that had previously withdrawn. Singapore joined the Fund on August 3, 1966, with a quota of $30 million and Guyana on September 26, 1966, with a quota of $15 million; Indonesia, which originally became a member on April 15, 1954 and withdrew on August 17, 1965, resumed membership on February 21, 1967, with a quota of $207 million. Applications for membership by The Gambia and Malta were under consideration at the end of the fiscal year. With the additional members and the increases in quotas shown in Table 62, the aggregate of Fund quotas on April 30, 1967 was $20,921 million, compared with $19,411 million at the end of the previous fiscal year.

Executive Directors

A list of the Executive Directors and Alternate Executive Directors and their voting power as of April 30, 1967 is given in Appendix II, and changes in membership of the Executive Board during 1966/67 are shown in Appendix III.

Article VIII

Four countries accepted the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement during and shortly after the fiscal year: Guyana, with effect from December 27, 1966; Denmark, with effect from May 1, 1967; Norway, with effect from May 11; and Bolivia, with effect from June 5. The 31 members that have rendered their currencies convertible under the Articles of Agreement are listed in Table 60.

Table 60.Countries That Have Accepted Article VIII, June 30, 1967
MemberEffective Date of Acceptance
AustraliaJuly 1, 1965
AustriaAugust 1, 1962
BelgiumFebruary 15, 1961
BoliviaJune 5, 1967
CanadaMarch 25, 1952
Costa RicaFebruary 1, 1965
DenmarkMay 1, 1967
Dominican RepublicAugust 1, 1953
El SalvadorNovember 6, 1946
FranceFebruary 15, 1961
GermanyFebruary 15, 1961
GuatemalaJanuary 27, 1947
GuyanaDecember 27,1966
HaitiDecember 22, 1953
HondurasJuly 1, 1950
IrelandFebruary 15,1961
ItalyFebruary 15, 1961
JamaicaFebruary 22, 1963
JapanApril 1, 1964
KuwaitApril 5, 1963
LuxembourgFebruary 15, 1961
MexicoNovember 12, 1946
NetherlandsFebruary 15,1961
NicaraguaJuly 20, 1964
NorwayMay 11, 1967
PanamaNovember 26, 1946
PeruFebruary 15, 1961
Saudi ArabiaMarch 22, 1961
SwedenFebruary 15, 1961
United KingdomFebruary 15, 1961
United StatesDecember 10, 1946

Par Values

The Fund concurred in the proposal of the Government of India for a change in the par value of the rupee from Rs 4.7619 per U.S. dollar to Rs 7.5 per U.S. dollar, effective June 6, 1966. The Fund concurred in the par value proposed by the United Kingdom for the new monetary unit of the Bahama Islands, in respect of which the United Kingdom has accepted the Fund Agreement, at the rate of 1.02041 Bahamian dollars per U.S. dollar, effective May 25, 1966. The Bahamian dollar, a decimal currency, replaced the Bahamas pound. The Fund also concurred in the par value proposed by the Government of Ghana for the “new cedi,” which was introduced to replace the cedi as the legal unit of value; the agreed par value was N

0.714286 per U.S. dollar, effective February 23, 1967.

Initial par values were established by agreement between the Fund and five members during the fiscal year, as shown in Table 61.

Table 61.Initial Par Values Established, Fiscal Year Ended April 30, 1967
MemberCurrency UnitEffective DateUnits of Member’s Currency per U.S. Dollar
GuyanaDollarFebruary 13, 19671.71429
KenyaShillingSeptember 14, 19667.14286
MalawiPoundMay 27, 19660.357143
TanzaniaShillingAugust 4, 19667.14286
UgandaShillingAugust 15, 19667.14286

After the close of the fiscal year, the Fund concurred in a proposal of the Government of Singapore for an initial par value for the new currency unit, the Singapore dollar, of S$3.06122 per U.S. dollar, effective June 12, 1967. The Fund concurred in a proposal of the Government of Ghana for a change in the par value of the new cedi, from N

0.714286 per U.S. dollar to N
1.02041 per U.S. dollar, effective July 8, 1967. The Fund also concurred in a proposal of the Government of New Zealand for the establishment of a par value for that member’s new decimal currency unit, the New Zealand dollar, which replaced the New Zealand pound; the par value agreed was $NZ 0.719194 per U.S. dollar, effective July 10, 1967.

Quotas

During the year under review, the quotas of 34 members were increased in accordance with Board of Governors’ Resolutions Nos. 20-6 and 20-7 entitled “Increases in Quotas of Members—Fourth Quinquennial Review,”1 which provided for a general increase of 25 per cent in the quotas of all members and special increases for 16 members, as described in the 1965 and 1966 Annual Reports.2 As of April 30, 1967, 92 members, representing 94.82 per cent of the Fund’s quotas as of February 26, 1965, the date specified in the Executive Directors’ Report to the Governors recommending approval of the general increase in Fund quotas,1 had taken up their authorized increases, either in full or by installments. Thus, only 9 countries that were Fund members on February 26, 1965 had not formally consented to an increase in their quotas and paid the corresponding amount of the increase (25 per cent in gold and the rest in the member’s currency); 3 of those members had indicated to the Fund that they did not intend to consent to the increase. The Executive Directors extended the period for consent under the above-mentioned Resolutions to October 31, 1967.

Table 62.Increases in Quotas, Fiscal Year Ended April 30, 1967(In millions of U.S. dollars)
MemberFormer QuotaNew QuotaEffective Date
Algeria63.0066.00 1Apr. 27, 1967
Argentina280.00350.00Aug. 10, 1966
Belgium337.50422.00July 26, 1966
Cameroon15.0015.80 2May 4, 1966
16.60 1Apr. 18, 1967
Canada550.00740.00May 31, 1966
Central African Republic7.508.00 2May 3, 1966
8.50 1Apr. 28, 1967
Chad7.508.00 2June 28, 1966
Congo (Brazzaville)7.508.00 2June 22, 1966
Congo, Dem. Rep. of45.0047.40 2Sept. 23, 1966
Costa Rica20.0025.00Aug. 19, 1966
Dahomey7.508.00 2June 18, 1966
Dominican Republic26.4027.80 1Mar. 29, 1967
France787.50985.00Aug. 17, 1966
Gabon7.508.00 2May 20, 1966
Germany787.501,200.00May 27, 1966
Guinea15.0019.00July 27, 1966
Ivory Coast15.8016.60 1Mar. 25, 1967
Jordan13.0013.75 1Mar. 30, 1967
Lebanon6.759.00Feb. 3, 1967
Luxembourg15.0015.80 2Aug. 16, 1966
Malaysia84.1789.17 1Mar. 28, 1967
110.00 3Apr. 7, 1967
Mauritania8.008.50 1Apr. 25, 1967
Morocco75.6079.20 1Apr. 15, 1967
Netherlands412.50520.00May 25, 1966
Niger7.508.00 2Aug. 30, 1966
Nigeria50.0063.00Nov. 16, 1966
Norway100.00150.00May 5, 1966
Philippines75.00110.00Sept. 30, 1966
Rwanda12.0012.75 1Apr. 3, 1967
Tanzania25.0032.00June 13, 1966
Tunisia28.0035.00May 31, 1966
Turkey86.00108.00Jan. 28, 1967
Upper Volta7.508.00 2May 17, 1966
Viet-Nam23.8029.00 1Feb. 24, 1967

In addition to the increases noted above, Malaysia completed payment of the final of 3 installments of a special increase in its quota approved by the Board of Governors on September 10, 1964. The changes in quotas during the year are shown in Table 62.

After the end of the fiscal year, the Board of Governors approved increases in the quota of Peru from $47 million to $85 million and subsequently in the quotas of Korea from $24 million to $50 million and of Viet-Nam from $29 million to $39 million. Each action was in accordance with the Compensatory Financing Decision, which specifies that the Fund is willing to give sympathetic consideration to requests for adjustment of the quotas of certain primary exporting countries, and in particular countries with relatively small quotas, where adjustment would be appropriate to make them more adequate in the light of fluctuations in export proceeds and other relevant criteria. These increases become effective when the member concerned notifies the Fund of its consent; by June 30, 1967 notification had been received from Peru.

Compensatory Financing of Export Fluctuations

In September 1966 the Fund made a number of changes in its compensatory financing facility, established in 1963. The principal changes concern the amount of compensatory assistance available and the floating character of outstanding compensatory drawings. First, the limit on outstanding drawings, which had normally been 25 per cent of a member’s quota, was extended to 50 per cent. Except in the case of shortfalls resulting from disasters or major emergencies, however, outstanding compensatory drawings may not increase by more than 25 per cent of quota in any 12-month period. In addition, requests for drawings which would increase outstanding compensatory drawings beyond 25 per cent of the member’s quota will be met only if the Fund is satisfied that the member has been cooperating with it in an effort to find, where required, appropriate solutions for its balance of payments difficulties. Second, in the method of calculating shortfalls greater weight is to be given to qualitative estimates (and thereby account taken of the fact that for most countries a rising trend of exports is normal). Third, compensatory drawings no longer affect the nature of the policy criteria which are applied to members’ subsequent requests for ordinary drawings, which might otherwise be subject to the more severe criteria for drawings in the higher credit tranches. This is achieved by separating the compensatory facility from other drawing facilities in the sense that the Fund’s tranche policies are applied as if the Fund’s holdings of a member’s currency were less than they actually are by the amount of outstanding compensatory drawings. Fourth, as a means of rendering more rapid assistance in cases of short-term export difficulties, ordinary drawings may within a certain period be reclassified as compensatory drawings if the requirements for a compensatory drawing of the same amount are met. Thereby, the member’s other drawing rights are restored for use in future contingencies. Finally, the Fund has recommended that, as soon as possible after the end of each of the four years following a compensatory drawing, members use in repurchase an amount approximately equal to one half of any excess of exports over the medium-term (five-year) trend value of their exports. Thus, the amended facility links repurchases in respect of compensatory drawings more closely to recovery in exchange earnings, thereby emphasizing the character of the facility as an offset to fluctuations in export receipts.3

In the years immediately following its introduction in 1963, the compensatory facility was not used very frequently. There had been a sharp upturn in prices of many primary commodities in 1963-64 and export proceeds of most primary producing countries had developed favorably during this period. It was chiefly as a result of this development that only three members made use of the facility during the first three years of its existence. Brazil and the United Arab Republic made compensatory drawings in 1963 and the Sudan in the middle of 1965. These three drawings taken together amounted to somewhat more than $87 million. Since the change in the compensatory facility in September 1966, less favorable tendencies in export earnings of primary producing countries, together with greater familiarity of member countries with the operation of the facility, brought about an increase in the number of requests for compensatory drawings. To June 30, 1967 five members—Ceylon, Colombia, the Dominican Republic, Ghana, and New Zealand—have used this special form of assistance with total drawings amounting to approximately $91 million. On the basis of this experience, it seems likely that the compensatory facility will tend to be actively used by Fund members during periods when export proceeds of primary producing countries develop less favorably, so that this facility, together with drawings from the Fund under ordinary tranche policies, should be of increased value in mitigating the effects of instability of export earnings.

Fund Transactions

Purchases

During the past fiscal year, 25 members purchased currencies from the Fund totaling the equivalent of $1,061.3 million. Of this amount, the equivalent of $676 million was purchased by 3 members in direct purchase transactions, $301.1 million was purchased by 19 members under stand-by arrangements, $62.3 million by 4 members under the Compensatory Financing Decision, and $21.9 million by 5 members in connection with increases in their quotas. Three of these members, Guinea, Iraq, and Sierra Leone, purchased currency from the Fund for the first time. The United States accounted for almost half of total purchases, and 24 primary producing countries for the balance. Of the total purchases made during the year, approximately $710 million fell within the members’ gold tranche position in the Fund, $92 million in the first credit tranche, $84 million in the second, $127 million in the third, and $48 million in the fourth credit tranches. Table 63 lists the purchases of currencies from the Fund during the year ended on April 30, 1967.

The largest purchase during the fiscal year was made by the United States in August 1966 for the equivalent of $250 million in Italian lire. In connection with this drawing, the Fund borrowed the equivalent of $250 million in lire from the Government of Italy.

The Fund’s arrangement with Italy marks its first borrowing outside the $6 billion General Arrangements to Borrow (GAB). The financial terms agreed between the Fund and the Italian Government are similar, however, to those applied under the GAB.4

The purchase of Italian lire was the second drawing by the United States not associated with repurchases by other members of the Fund; the first was made late in July 1965 for the equivalent of $300 million. Since February 1964 the Fund’s holdings of U.S. dollars have been above 75 per cent of the U.S. quota, which, as explained in earlier Reports,5 has precluded the Fund from accepting U.S. dollars in repurchases from members. From time to time, therefore, the United States has purchased other currencies from the Fund and made them available for U.S. dollars at par to members who keep their international reserves mainly in U.S. dollars and who have had to make repurchases from the Fund. During the year ended on April 30, 1967, the United States purchased Canadian dollars equivalent to US$210 million and deutsche mark equivalent to US$30 million for this purpose. Altogether, the United States has purchased currencies from the Fund for this purpose equivalent to $1,090 million; 25 members have availed themselves of the facility offered, and have purchased currencies totaling the equivalent of $1,087 million. Meanwhile, other members have continued to purchase U.S. dollars from the Fund, and these purchases, together with other movements of U.S. dollars, reduced the United States’ outstanding balance of drawings to $933.3 million on April 30, 1967.

Stand-By Arrangements

For members in need of financial assistance from the Fund, the stand-by arrangement has continued to be a valuable instrument. During the past fiscal year stand-by arrangements were approved for 25 members authorizing purchases equivalent to $591 million. By April 30, 1967 currencies equivalent to $189.6 million had been drawn by 13 members under these arrangements. Table 64 gives details of stand-by arrangements in force during the fiscal year. Some particulars of these arrangements follow.

Colombia. A stand-by arrangement authorizing Colombia to purchase up to the equivalent of $60 million was agreed by the Fund in April 1967; by the end of that month, $22.5 million had been drawn. The arrangement was in support of efforts by the Colombian authorities to improve the country’s balance of payments position and to maintain financial stability, and followed the introduction of a new exchange system in March 1967.

Table 63.Purchases of Currencies from the Fund, Fiscal Year Ended April 30, 1967(In millions of U.S. dollars)
Member PurchasingUnder Stand-By ArrangementsUnder Decision on Compensatory FinancingIn Connection With Quota Increases Under First ResolutionDirect Purchase TransactionsTotal
Afghanistan7.697.69
Argentina17.5017.50
Burundi8.008.00
Ceylon25.0019.5044.50
Chile30.0030.00
Colombia40.5018.9059.40
Costa Rica3.501.254.75
Dominican Republic6.606.60
Ecuador5.005.00
El Salvador20.0020.00
Finland55.0055.00
Ghana31.4017.2548.65
Guatemala7.007.00
Guinea1.001.00
Haiti3.500.443.94
Iraq20.0020.00
Liberia4.604.60
Rwanda2.002.00
Sierra Leone3.503.50
Spain166.00166.00
Sudan19.5019.50
Tunisia5.401.757.15
Turkey24.5024.50
United States490.00490.00
Uruguay5.005.00
Total301.0962.2521.94676.001,061.28

Finland. In March 1967 the Fund agreed to a stand-by arrangement for Finland authorizing purchases equivalent to $93.75 million; $55 million had been drawn by April 30. The arrangement was in support of efforts by the Finnish authorities to restore equilibrium in the balance of payments.

Ghana. The stand-by arrangement for Ghana was approved in May 1966. It authorized drawings up to $36.4 million to provide support for the Government’s comprehensive program of economic rehabilitation and financial reform. Under the arrangement $31.4 million had been drawn by April 30, 1967.

Guyana. A stand-by arrangement for Guyana, the first for this member, was approved in February 1967. It authorized drawings up to $7.5 million to support a program designed to strengthen the country’s financial position. No drawing under this arrangement was made during the fiscal year.

Paraguay. The stand-by arrangement for Paraguay was approved in August 1966. It authorized drawings up to $7.5 million to support the Government’s efforts to promote the country’s economic growth while maintaining financial equilibrium. No drawing under this arrangement was made during the fiscal year.

Sierra Leone. The first stand-by arrangement for Sierra Leone was approved in October 1966. It authorized drawings up to $7.5 million to provide support for the efforts of the Sierra Leonean authorities to improve the country’s balance of payments and fiscal position. Under this arrangement $3.5 million had been drawn by April 30, 1967.

Table 64.Fund Stand-By Arrangements for Members, Fiscal Year Ended April 30, 1967(In millions of U.S. dollars)
MemberDate of InceptionDate of ExpirationAmountNew or Renewed in 1966/67Amount Available April 30, 1967
AfghanistanJune 17,1965June 16,19666.75
Aug. 3,1966Aug. 2,19678.008.002.00
BoliviaSept. 1,1965Nov. 30,1966 114.00
Dec. 2,1966Dec. 1,196718.0018.0018.00
BrazilFeb. 1,1966Jan. 31,1967125.00
Feb. 13,1967Feb. 12,196830.0030.0030.00
BurundiMar. 28,1966Mar. 27,19675.00
Mar. 28,1967Mar. 27,19686.006.001.00
CeylonJune 15,1965June 14,196630.00
June 15,1966June 14,196725.0025.00
ChileMar. 1,1966Feb. 28, 196740.00
ColombiaJan. 1,1966Dec. 31,196636.50
Apr. 15,1967Apr. 14,196860.0060.0037.50
Costa RicaMar. 1,1966Feb. 28,196710.00
EcuadorJuly 1,1965June 30,196612.00
July 15,1966July 14,196713.0013.008.00
El SalvadorOct. 15,1965Oct. 14, 196620.00
FinlandMar. 6,1967Mar. 5,196893.7593.7538.75
GhanaMay 17,1966May 16, 196736.4036.405.00
GuatemalaJan. 1,1966Dec. 31,196615.00
Apr. 1,1967Mar. 31,196813.4013.4013.40
GuyanaFeb. 15,1967Feb. 14,19687.507.507.50
HaitiOct. 1,1965Sept. 30,19664.00
Oct. 1,1966Sept. 30,19674.004.002.50
HondurasJan. 1,1966Dec. 31,196610.00
KoreaMar. 22, 1966Mar. 21,196712.00
Mar. 22,1967Mar. 21,196818.0018.0018.00
LiberiaJune 1,1965May 31,19664.00
June 1,1966May 31, 19676.006.001.40
MoroccoSept. 23, 1965Sept. 22,196645.00
Sept. 23,1966Sept. 22,196750.0050.0050.00
PanamaJuly 26,1965July 25,19667.00
ParaguaySept. 1, 1966Aug. 31,19677.507.507.50
PeruMar. 31, 1966Mar. 30,196737.50
PhilippinesApr. 12, 1966Apr. 11,1967 226.70
Jan. 5, 1967Jan. 4, 196855.0055.0055.00
RwandaApr. 15,1966Apr. 14,19675.00
Apr. 20,1967Apr. 19,19682.002.002.00
Sierra LeoneNov. 1,1966Oct. 31,19677.507.504.00
SomaliaJan. 19,1966Jan. 18,19672.80
Jan. 19,1967Jan. 18,19685.005.005.00
SudanSept. 22,1966Sept. 21,196728.5028.509.00
TunisiaNov. 12,1965Nov. 11,19665.60
Dec. 5,1966Dec. 4,19679.609.607.00
TurkeyFeb. 1,1966Dec. 31,196621.50
Feb. 15,1967Dec. 31,196727.0027.0024.00
UruguayJune 9,1966June 8,196715.0015.0010.00
YugoslaviaJuly 26,1965July 25,196680.00
Jan. 1,1967Dec. 31,196745.0045.0045.00
Total as of April 30, 1967591.15401.55

Sudan. The stand-by arrangement for the Sudan, approved in September 1966, was also the first for the member. It authorized drawings up to $28.5 million to provide support for the efforts of the national authorities to reduce existing pressures on resources and to lay the ground for achieving internal and external equilibrium. Under this arrangement $19.5 million had been drawn by April 30, 1967.

Uruguay. A stand-by arrangement for Uruguay, which became effective in June 1966, authorized drawings up to $15 million. The arrangement was in support of a financial program aimed at slowing the pace of domestic inflation, removing distortions in the economy, strengthening the balance of payments, and reducing short-term foreign indebtedness, thereby establishing the foundations for sound economic development. Under the arrangement $5 million had been drawn by April 30, 1967.

Stand-by arrangements approved during the year for Afghanistan, Bolivia, Brazil, Burundi, Ceylon, Ecuador, Guatemala, Haiti, Korea, Liberia, Morocco, the Philippines, Rwanda, Somalia, Tunisia, Turkey, and Yugoslavia were in continuation of the financial support the Fund had accorded to them under stand-by arrangements in the preceding year. Those for Brazil, Ceylon, Guatemala, Rwanda, and Yugoslavia were for smaller amounts, those for Afghanistan, Bolivia, Burundi, Ecuador, Korea, Liberia, Morocco, the Philippines, Somalia, Tunisia, and Turkey were for larger amounts than the preceding arrangements, and the one for Haiti was for a similar amount.

Waivers

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 for Brazil and Turkey. Four of the purchases, not under stand-by arrangements, made during the year also required waivers—the purchases by Ceylon and Ghana under the Fund’s Compensatory Financing Decision and the purchases made by Costa Rica and Tunisia in connection with the increases in their quotas.

Repurchases

During 1966/67, 30 members made repurchases equivalent to $340.1 million. Of this amount, the equivalent of $268.9 million was repurchased in accordance with agreed schedules providing for repurchase not later than five years from the date of purchase. Also included was the equivalent of $28.4 million repurchased in discharge of obligations under Article V, Section 7(b), of the Articles of Agreement; this 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. In addition, $3.8 million was repurchased before the expiration of the three-year period in respect of purchases under stand-by arrangements and $1 million in respect of a gold tranche purchase; $22 million at the expiration of three years from the date of purchases made under stand-by arrangements; and $13.5 million at the expiration of one year and $2.5 million at the expiration of two years from the date of purchase, representing the first and second installments in respect of purchases made in connection with quota increases. One member did not repurchase at the agreed dates and discussions with that member were in progress. Repurchases of currencies from the Fund during the fiscal year ended on April 30, 1967 are listed in Table 65.

For 8 members, the Executive Board agreed at the end of the three-year period to repurchase schedules permitting repurchases not later than five years from the date of purchase. One member was permitted to postpone payment of its repurchase obligation, incurred under Article V, Section 7(b), of the Articles of Agreement, as at April 30, 1966, to coincide with scheduled repurchases.

Currency Composition of Drawings and Repurchases

The Fund sold 15 members’ currencies to other members of the Fund during 1966/67. Brazilian cruzeiros, Malayan dollars, Norwegian kroner, and Venezuelan bolivares were sold to other members of the Fund for the first time. All of these sales were consistent with the statement on Currencies to Be Drawn and to Be Used in Repurchases, approved by the Executive Directors on July 20, 1962.6 The sale of Brazilian cruzeiros, pounds sterling, and U.S. dollars had the effect of reducing the Fund’s holdings of these currencies, which were above 75 per cent of the members’ quotas, and thus reduced the amounts to be repurchased by these members.

Purchases and repurchases during the year ended on April 30, 1967 are classified by currency in Table 66, which shows separately the largest drawings, the equivalent of $490 million by the United States, and repurchases made during the Fund’s financial year in discharge of repurchase obligations incurred by members under Article V, Section 7(b), of the Articles of Agreement. The Fund’s holdings of U.S. dollars on April 30, 1967 were equivalent to 93 per cent of the U.S. quota and those of pounds sterling to 173 per cent of the U.K. quota. The Fund’s holdings of Italian lire were the lowest of any currency as a percentage of the member’s quota, 4.7 per cent, on April 30, 1967.

Summary of Transactions, 1948-67

From the inception of Fund operations, 64 members have purchased currencies from the Fund, and 4 members have had stand-by arrangements without drawing under them. Total sales by the Fund were equivalent to $13.2 billion. All Fund transactions are summarized in Table 67. Drawings outstanding at April 30 of each year, together with the amounts available (but not used) under stand-by arrangements on the same date, are shown in Chart 27.

Drawings made by 55 members have been wholly or partly repaid, either through repurchases in gold or convertible currencies, or as a result of purchases of their currencies by other members. On April 30, 1967, the total amount of members’ purchases still outstanding was equivalent to $5.21 billion. On that date the amounts drawn had been outstanding for the following periods:

Table 65.Repurchases of Currencies from the Fund, Fiscal Year Ended April 30, 1967(In millions of U.S. dollars)
Member RepurchasingAmount
Afghanistan4.36
Argentina64.00
Bolivia2.50
Brazil27.03
Burundi3.19
Ceylon7.50
Chile38.50
Colombia34.00
Costa Rica2.50
Cyprus1.16
Ecuador0.25
Ghana4.00
Guatemala0.40
Haiti3.10
Honduras5.25
India57.50
Ireland1.31
Jamaica
Jordan0.01
Liberia5.00
Nicaragua5.59
Pakistan1.90
Philippines10.80
Sudan3.10
Syrian Arab Republic3.22
Tunisia0.46
Turkey18.00
United Arab Republic16.00
Uruguay8.00
Yugoslavia11.50
Total340.12
Amount in millions of U.S. dollarsNumber of members involved
12 months or less1,154.527
13 to 18 months786.027
19 to 24 months1,843.217
25 to 30 months1,061.119
31 to 36 months121.415
37 to 42 months30.95
43 to 48 months120.07
49 to 54 months50.75
55 to 60 months42.44

Fund Charges

As of April 30, 1967, 31 members were 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 $82.5 million, compared with $65.7 million during the preceding year. Since the beginning of the Fund’s operations, 54 members have been subject to such charges. At present, part of these charges is paid by 6 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 in April 1967 and continues in effect. The decision is to be reviewed by the Executive Board annually. The schedule is reproduced in each issue of International Financial Statistics.

Table 66.Drawings and Repurchases by Currency, Fiscal Year Ended April 30, 1967(In millions of U.S. dollars)
DrawingsRepurchases
CurrencyUnited StatesOther countriesTotalUnder Article V, Section 7(b) 1OtherTotal
Gold14.314.3
Australian dollars21.321.3
Austrian schillings20.020.00.20.2
Belgian francs10.010.022.72.7
Brazilian new cruzeiros 315.015.0
Canadian dollars210.043.8253.80.7227.8228.5
El Salvadoran colones22
French francs46.246.26.56.613.1 4
Deutsche mark30.052.082.03.234.938.1
Italian lire250.059.3309.226.96.9
Japanese yen0.430.430.9
Malayan dollars 35.05.0
Mexican pesos14.014.022
Netherlands guilders10.010.01.40.92.3
Norwegian kroner 35.05.0
Swedish kronor1.01.52.5
Pounds sterling120.4120.40.20.2
U.S. dollars139.5139.50.50.5
Venezuelan bolivares 310.010.0
Total490.0571.31,061.328.4311.7340.1

Service charges on drawings totaled $5.3 million during the year under review, compared with $14.1 million in 1965/66. Charges collected on stand-by arrangements, after deductions 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 restored or increased the members’ gold tranches, totaled $0.9 million during the year ended on April 30, 1967. 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 $0.6 million, compared with $0.4 million in 1965/66.

Charges paid by the Fund in accordance with the loan agreement with Italy amounted to $1.25 million. Interest paid by the Fund in accordance with paragraph 3(b) of the loan agreement with Italy and paragraph 9(b) of the General Arrangements to Borrow amounted to a total of $15.6 million. Both charges and interest were paid in gold.

Chart 27.Outstanding Balances of Drawings from the Fund and Unused Stand-By Arrangements, on April 30, 1948-67

(In millions of U.S. dollars)

1 Belgium, Canada, Denmark, France, Italy, Japan, Netherlands, and Norway.

Consultations with Members

Member countries that are availing themselves of the transitional arrangements of 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. During the fiscal year 1966/67 such consultations were completed with 45 countries; with others the procedures had been initiated but had not been completed by the end of the fiscal year. These consultations have continued to provide opportunities for the examination of the economic and financial problems of the members and of their efforts to reduce and simplify exchange restrictions. Again, 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.

Table 67.Summary of Fund Transactions, Fiscal Years Ended April 30, 1948-67(In millions of U.S. dollars)
Total Purchases by MembersTotal Stand-By Arrangements in Force at End of Fiscal YearTotal Repurchases by Members
1948606.04
1949119.44
195051.8024.21
195128.0019.09
195246.2536.58
195366.1253.00184.96
1954231.2990.00145.11
195548.7590.00276.28
195638.7597.50271.66
19571,114.05968.9075.04
1958665.73884.2886.81
1959263.521,132.84537.32
1960165.53291.88522.41
1961577.00338.62658.60
19622,243.201,942.881,260.00
1963579.971,287.25807.25
1964625.901,970.15380.41
19651,897.44516.15516.97
19662,817.29421.04406.00
19671,061.28401.55340.12
Total13,247.356,548.80 1

Consultations were also held with 18 members that have accepted the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement. The Executive Board Decision No. 1034-(60/27) of June 1, 1960 7 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 financial developments and enable the Fund to further the objective of securing the fullest possible degree of collaboration on international monetary problems.

Technical Cooperation

The fiscal year 1966/67 saw a further strengthening and expansion of the technical services provided by the Fund to member countries. During the year staff members have been assigned, in teams or individually, to countries requesting assistance on a variety of problems in fields related to the work of the Fund. These assignments have covered advice on the preparation and the carrying out of monetary, exchange, and fiscal policies, the drafting of central banking legislation, the organization of central banks, and the development of financial statistics. The Fund has also sent its representatives to a number of member countries to assist them in the implementation of programs related to stand-by arrangements. Many of these assignments have been for a relatively short duration, but some have been for a year or longer. In the fiscal year regular Fund staff members were assigned for six months or more to 17 countries and one regional organization.

Only part of the technical expertise made available to member countries, however, has been provided from the Fund’s own staff. A growing number of those assigned have been outside experts with suitable experience in central banking, financial, and fiscal management. For these experts, the Fund has again had to rely heavily on the assistance offered by the older and more experienced central banks and Treasuries, who have been most generous in releasing qualified staff members, often senior officials, for assignment by the Fund. It is evident that the demand for these specialized services is an expanding one, and the Fund is doing its best to meet, from the limited pool of trained personnel available, all the requests of its members.

Since the establishment of the Fiscal Affairs Department in 1964, the Fund has been able to respond to members’ requests related to public finance problems with far greater effectiveness. In the three years since its inception the Department made 17 assignments from its panel of fiscal experts for assistance to countries in Africa, Asia, the Middle East, and Latin America. Twelve of these assignments, to 10 countries, and covering all aspects of public finance, were made in the past fiscal year. To some countries the Fund has sent a general fiscal advisor to evaluate the existing sources of government revenue and recommend new sources of taxation, to advise on new measures and institutions for the mobilization of domestic savings, and to advise on the desirability of modifying the budgetary process. Fund experts have been called upon to advise on improving the management and control of treasury operations, on the formulation and organization of budgets, on the improvement of government accounts and reporting systems, and on administrative procedures for the collection and enforcement of taxation.

The Central Banking Service, also established in 1964, has similarly experienced a continuous increase in the demand for its services. During the year, 42 experts carried out assignments in 25 countries under its auspices. Much, but not all, of this assistance went to the central banks of 18 countries in Africa and the Middle East. Twenty missions were sent to provide advice on the functions and organization of the central bank, as well as on the appropriateness of projected changes in its legal framework. Advice was sought on analysis of existing credit structures and systems and on possible needs for reform. Arrangements for cooperation between central banks were also discussed. Seventeen countries received assistance with legislation governing the central bank, the commercial banking system, and negotiable instruments. Many of the requests have come from newer institutions, but a number of inquiries were received from institutions which have been in operation for some years, reflecting a need to modernize the application of the instruments of monetary policy.

The widening and consolidation of the Fund’s facilities for providing technical assistance, including that by the IMF Institute noted below, has reflected the growing needs of its member countries, particularly of its newer members who joined the Fund after becoming independent. For many of these countries, the difficulties of achieving rapid economic growth, the need to utilize the more advanced techniques of financial and economic control, and the general shortage of skilled and experienced economic administrators pose problems akin to those arising from the rather more widely publicized technological gap in science and industry. In endeavoring to meet the requests of its members, the Fund is providing a service which, though narrowly specialized, is crucial for the achievement of the broader aim of economic development.

The IMF Institute

The IMF Institute continued to broaden the scope of its programs in the third year of its existence.

As in previous years, the principal task of the Institute has been the preparation and presentation of the regular courses on financial analysis and policy. The Institute began two such courses in 1966/67. The first one, which was conducted in French over a 16-week period beginning on September 6, 1966, was attended by 25 officials from central banks and Ministries of Finance, Commerce, and Economic Affairs, mostly from French-speaking African countries. This course, which was 6 weeks longer than the one given in the previous year, closely followed the outline of the 20-week regular course in English which ended in July 1966. The second course, which began on March 6, 1967 for a 20-week period, was given in English to 26 participants from 24 member countries. The regular courses on financial analysis and policy have, as their principal focus, the formulation of appropriate monetary, fiscal, and balance of payments policies, with special emphasis on the problems of developing countries. These courses draw extensively on the experience gained by the Fund in its contacts with member countries.

In addition to the above courses, the Institute organized two shorter courses in 1966/67. A course, in English, on balance of payments methodology was given from January 4 to February 24, 1967, in cooperation with the Fund’s Balance of Payments Division. A course on public finance, in English, was arranged for the first time for the period May 15-July 7, 1967, with the help of the Fund’s Fiscal Affairs Department.

During 1967/68, the Institute will further expand its activities, with the organization of the first course on financial analysis and policy in Spanish. The first course given by the Institute in Spanish was a course in balance of payments methodology held in May-June 1966 in San Salvador under the auspices of the Central American Monetary Council.

The increase in the scope of the Institute’s programs has been facilitated by the recruitment of additional staff and the acquisition of improved office space and expanded living quarters for the participants during 1966. The Institute was able to organize two courses simultaneously, for the first time, in 1966/67. In 1967/68, further progress will be made in this direction. Because of the improved facilities, the Institute has also been able to increase the duration of the various courses.

Relations with Other International Organizations

The Fund has continued to maintain close relations with international and regional organizations with which it has common concerns—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), the OAS Inter-American Committee on the Alliance for Progress (CIAP), and the Inter-American Development Bank (IDB)—and with the International Bank for Reconstruction and Development (IBRD), with which it has a special relationship. These and other international organizations having related fields of interest were represented at the joint Annual Meetings of the Fund and the Bank, and Fund representatives attended meetings of those organizations and maintained direct working relationships with their staffs.

The Managing Director addressed the United Nations Economic and Social Council (ECOSOC) on the occasion of the presentation of the Fund’s Annual Report to the Resumed Forty-First Session in December 1966. He also took part in meetings of the UN Administrative Committee on Coordination (ACC) and of the Interagency Consultative Board of the UN Development Program (UNDP). In connection with the liquidity discussions, the Managing Director attended the Ministerial Meeting of the Group of Ten at The Hague in July 1966. He addressed the High Level Meeting of the Development Assistance Committee of the OECD which met in Washington also in July. The Deputy Managing Director attended the ACC Meeting in Geneva in April 1967.

Other Fund representatives attended the Twenty-First Session of the UN General Assembly, the Forty-First Sessions of the ECOSOC, and meetings of the UN regional Economic Commissions for Africa (ECA), Asia and the Far East (ECAFE), and Europe (ECE). Fund staff also attended meetings of the UN Committee of Experts on Development Planning in New York and Santiago, Chile, the Governing Council of the UN Development Program, various subsidiary committees and working groups established by the ACC and its Preparatory Committee, the first session of the UN Industrial Development Board, and the meeting of the UN Expert Group on the measurement of capital flow to the developing countries. The Fund sent observers to the ECA Sub-Regional Meeting on Economic Cooperation in West Africa at Niamey, and to the ECAFE Tenth Session of the Working Party on Economic Development Planning and its Fourth Workshop on Problems of Budget Classification and Management in Countries of the ECAFE Region, both of which were held in Bangkok.

Representatives of the Fund attended the Fourth Session of the UN Trade and Development Board, the permanent organ of the UN Conference on Trade and Development (UNCTAD). The Fund was also represented at numerous meetings of the regular committees and special groups of UNCTAD. The Fourth Session of the Board and most other UNCTAD meetings took place in Geneva, where the Fund has established an office; some meetings at which the Fund was represented were in New York. Of particular interest to the Fund has been the work of the Committee on Invisibles and Financing related to Trade, the Expert Group on International Monetary Issues, and the Intergovernmental Group on Supplementary Financing. The record of the discussions in UNCTAD of international monetary reform was transmitted early in 1966 to the Fund and to other international organizations for due consideration. Pursuant to a resolution adopted by the UN General Assembly in December 1966, the Secretary-General of UNCTAD consulted with the Managing Director on the progress of activity relating to international monetary reform; subsequently the Secretary-General, together with some members of the Expert Group on International Monetary Issues and of the UNCTAD secretariat, discussed this subject informally with the Executive Directors.

In the field of commodities, the Fund sent representatives to the meetings of the Food and Agriculture Organization’s Committee on Commodity Problems in Rome, the UN Cocoa Conference in New York, the International Cotton Advisory Committee in Lima, and the first session of the UNCTAD Permanent Subcommittee on Commodities in Geneva.

In the Latin American area, members of the staff attended the Eighth Meeting of Central Bank Technicians of the American Continent and the Ninth Operational Meeting of the Center for Latin American Monetary Studies (CEMLA) held in Buenos Aires, the Eighth Annual Meeting of the Board of Governors of the Inter-American Development Bank in Washington, and the Third Special Inter-American Conference of the Organization of American States (OAS), which was preceded by an Extraordinary Meeting of the Inter-American Economic and Social Council at the Ministerial Level, in Buenos Aires. Fund representatives also attended several meetings of the OAS Inter-American Committee on the Alliance for Progress (CIAP) and, as in previous years, participated in informal periodic interagency meetings arranged by the CIAP secretariat in connection with the preparation of the CIAP country reviews and other matters of mutual interest. Furthermore, the Fund again made available some of its staff members to give a series of lectures on monetary subjects at the CEMLA in Mexico City.

The Fund was represented at the dedication of new buildings of the Bank of Guatemala and the Central Bank of Venezuela, and at a round table on liquidity and capital markets held after the latter dedication. Fund representatives also attended the formal opening of the premises of the Central Bank of Trinidad and Tobago and the Inaugural Meeting of the Asian Development Bank in Tokyo.

The Fund and the Bank continued their close collaboration on matters of mutual concern, including the coordination of aid. The Fund was represented at meetings of consultative and other groups and consortia held under IBRD auspices for individual countries and the Bank collaborated in the Ghana Aid Meeting convened by the Fund. Fund representatives also attended the second general meeting on aid coordination held by the Bank during the joint Annual Meetings of the Boards of Governors in September.

Fund representatives continued to attend meetings of various committees of the OECD, including the Economic and Development Review Committee; the Economic Policy Committee and its Working Party 3, which is primarily concerned with policies for improving international payments equilibrium; the Development Assistance Committee (DAC) and its various working parties, including the Working Party on Financial Aspects of Development Assistance and the Working Group on Short-Term Economic Prospects; and the Committee for Invisible Transactions, which is undertaking a study, with Fund participation, on the improvement of capital markets. The Fund was represented at the annual meeting of the Ministerial Council of the OECD, and a staff member participated in meetings of the Group of Experts on capital flow statistics convened by the DAC.

Representatives of the Fund attended meetings arranged by the Contracting Parties to the General Agreement on Tariffs and Trade (GATT), including a meeting in Punta del Este in January 1967 of the Committee on Trade and Development. The Contracting Parties consult the Fund in connection with their consideration of import restrictions maintained by contracting parties for balance of payments reasons as well as in other cases involving balance of payments or exchange aspects. For countries consulting with the GATT on such matters, background material and decisions which the Fund reaches at the conclusion of its own Article XIV consultations are regularly furnished to the GATT.

Staff

At the end of the fiscal year, the Fund staff numbered 861, including 35 on temporary appointment. This total represented a net increase of 111 over the beginning of the year. During the year, 211 new staff members were appointed from 51 member countries. Nationals of 72 countries were on the staff on April 30, 1967.

Administrative Finance

During the fiscal year, the Fund’s operating income, equivalent to $89,618,556, exceeded its total expenditure by $50,426,542. This amount was transferred provisionally to the General Reserve pending action by the Board of Governors. The General Reserve totaled $236,783,492 on April 30, 1967.

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 $40,959,870 for the fiscal year; it was credited to a Special Reserve, which showed a balance of $223,141,700 on April 30, 1967.

The administrative budget approved by the Executive Directors for the period May 1, 1967-April 30, 1968 is presented in Appendix IV. Comparative income and expenditure figures for the fiscal years ended 1965, 1966, and 1967 are given in Appendix V.

The Executive Directors requested the Governments of Canada, the Philippines, and Venezuela to nominate members of the Audit Committee for 1967. The following nominations were made and confirmed: Mr. George R. Long, Assistant Auditor General of Canada; Mr. Julian D. Mercado, Executive Assistant to the Deputy Governor, Central Bank of the Philippines; Mr. Guillermo Pimentel, Advisor, Central Bank of Venezuela. The report of the Committee is submitted separately. Appendix VI gives the Auditors’ Certificate, together with the audited Balance Sheet as at April 30, 1967 and the audited Statement of Income and Expenditure for the financial year.

Publications

The Fund’s regular program of publications was continued in 1966/67: Annual Report of the Executive Directors for the Fiscal Year Ended April 30, 1966, with shortened versions in French, German, and Spanish; Balance of Pay-ments Yearbook, Volume 18, 1961-65; International Financial News Survey, weekly; International Financial Statistics (issued in an English edition and in a combined English, French, and Spanish edition), monthly, and Supplement to 1966/67 Issues; Schedule of Par Values, 42nd and 43rd issues; Seventeenth Annual Report on Exchange Restrictions; Staff Papers, Volume XIII, Nos. 2 and 3, and Volume XIV, No. 1; and Summary Proceedings of the Twenty-First Annual Meeting of the Board of Governors.

In conjunction with the IBRD, the Fund published Direction of Trade, monthly, with an annual edition, 1961-65; and Finance and Development, quarterly (English, French, and Spanish editions).

The Fund’s second report on the compensatory financing of fluctuations in exports of primary producing countries, Compensatory Financing of Export Fluctuations: Development in the Fund’s Facility, was published in September 1966 (in English, French, and Spanish editions). The Fund’s first report on this subject was published in February 1963.

In April 1967 the Fund published Central Banking Legislation: A Collection of Central Bank, Monetary and Banking Laws; Volume II, Europe, selected and annotated by Mr. Hans Aufricht, of the Fund’s Legal Department. This volume is a sequel to Mr. Aufricht’s earlier collection of central bank, monetary, and banking laws published by the Fund in 1961. It contains the basic domestic laws that govern the central bank, banking, and monetary regimes of European countries, providing, in English, an up-to-date inventory of the legal and institutional framework within which European central banks operate. The countries covered in detail by this second volume are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and Yugoslavia.

Other publications of the Fund in 1966/67 were a second edition of the pamphlet The Financial Structure of the Fund and three new pamphlets: Balance of Payments: Its Meaning and Uses; The Cuban Insurance Cases and the Articles of the Fund; and The Fund and Non-Member States: Some Legal Effects. There are now nine publications in this Pamphlet Series; all of them are being issued in English, French, and Spanish.

The Balance of Payments Yearbook, International Financial Statistics (and Supplements), Staff Papers, and Direction of Trade are available by subscription. The total cost for all four publications is $33.50 to general subscribers. University libraries, faculty members, and students may subscribe at the reduced rate of $3.00 a year to any one of these publications or $10.00 a year for all four. Central Banking Legislation is being sold by the Fund at $10.00 for each volume. All other publications of the Fund mentioned above are available free of charge.

B. Balance of Payments Statements

The following tables 6876 present recent balance of payments statements for the members of the European Economic Community, Canada, Japan, the United Kingdom, and the United States. Less detailed statements are presented in Table 77 for the primary producing countries. For some countries the tables reflect the latest revisions of the data which could not be incorporated elsewhere in the Report.

Table 68.Belgium-Luxembourg: Balance of Payments Summary, 1965-First Quarter 1967 1(In millions of U.S. dollars)
1966 21967 2
19651966 2First

quarter
Second

quarter
Third

quarter
Fourth

quarter
First

quarter
A. Goods, Services, and Transfer Payments
Exports 35,3145,6481,3741,4131,3931,4681,454
Imports 3−5,210−5,742−1,390−1,419−1,429−1,504−1,390
Trade balance104−94−16−6−36−3664
Services (net)461210−12−82228
Transfer payments (net)2−18−2−6−6−4−6
Total152−100−8−24−50−1886
Memorandum item: Goods, Services, and Private Transfers200−502−12−36−498
B. Long-Term Capital
Private13432 320 328 314 3−30 346 3
Official−88−84−24−12−30−18−58
Total46−52−416−16−48−12
C Total (A plus B)198−152−12−8−66−6674
D. Short-Term Capital, n.i.e. (including net errors and omissions)
Private nonmonetary−18444444
Treasury short-term certificates−26342−2232
Net errors and omissions−61746−29−8
Total−50516441−8
E. Commercial Bank Capital14132−56704078−76
F. Total (C through E)16231−6266−2653−10
G. Official Monetary Movements
IMF accounts−108−58−14−22−22
Foreign exchange (increase—)10210386−6−282
Other claims (net)−48−1736−5024−278
Monetary gold (increase—)−108342302
Total−162−3162−6626−5310
Source: National Bank of Belgium.
Table 69.Canada: Balance of Payments Summary, 1965-First Quarter 1967 1(In millions of U.S. dollars)
19661967
19651966First

quarter
Second

quarter
Third

quarter
Fourth

quarter
First

quarter
A. Goods, Services, and Transfer Payments
Exports8,0899,5002,0462,3922,4812,5812,417
Imports−7,980−9,148−2,046−2,386−2,203−2,513−2,346
Nonmonetary gold1261163127283031
Trade balance235468313330698102
Investment income−704−818−179−180−178−281−175
Other services (net)−446−460−203−16841−130−208
Transfer payments (net)−85−99−239−61−24−33
Total−1,000−909−374−306108−337−314
Memorandum item: Goods, Services, and

Private Transfers
−917−755−344−292188−307−266
B. Long-Term Capital
Direct investment in Canada375611111176134190111
Canadian direct investment abroad−1169−14−3783−23−28
Transactions in Canadian securities
New issues1,1181,339539331269200307
Retirements and other transactions−556−672−128−204−163−177−110
Transactions in foreign securities−78−367−69−110−110−78−50
Columbia River Treaty (net)303030
Other loans by Canadian Government (net)−3−10−4−1−727
Other−110−62−2043−24−608
Total66087941419818384245
C. Total (A plus B)−340−3040−108290−253−69
D. Short-Term Capital (including
net errors and omissions)487−301−168−36823657
E. Total (C plus D)146−332−128−108−79−17−12
F. Official Monetary Movements
IMF accounts−156−95−26−59−188−20
Gold and foreign exchange (increase—)1042715416797932
Total−146332128108791712
Source: Based on data published by the Dominion Bureau of Statistics.
Table 70.Metropolitan France: Balance of Payments Summary, 1965-66 1(In millions of U.S. dollars)
1966
19651966First

quarter
Second

quarter
Third

quarter
Fourth

quarter
A. Goods, Services, and Transfer Payments
Exports f.o.b.8,5969,4922,3372,4452,3542,356
Imports f.o.b.−8,208−9,530−2,290−2,395−2,307−2,538
Trade balance388−38475047−182
Services (net)935450111−13831
Transfer payments (net)3717−2−15−135
Total5183395146−92−116
Memorandum item: Goods, Services, and
Private Transfers581102123179−68−132
B. Long-Term Capital
Private
Direct investment in France33429352917575
Direct investment abroad−233−170−28−54−43−45
Other private lone-term capital260334246−8025
Official3
Advance debt redemption−179−71−71
Other official−66−66−17−5−35−9
Total116194978−15446
C. Total (A plus B)63452144224−246−70
Total, excluding advance debt redemption813123144224−175−70
D. Short-Term Capital, n.i.e. (including
net errors and omissions)
Private nonmonetary−90−114−15−39−35−25
Net errors and omissions
Operations pending settlement−729−32−10863
Other1591308107107−92
Total6245−395880−54
E. Net Transactions of Overseas Franc Area26925297575147
F. Commercial Bank Capital
Liabilities (decrease—)273797−3588453291
Assets (increase—)−527−753−41−111−247−354
Total−25444−76−23206−63
G. Total (C through F)71139312631691−140
H. Official Monetary Movements 3
IMF accounts−265−104−6−38−57−3
Other liabilities−82−7−5−315−14
Other claims (increase—)613250−15−55166154
Monetary gold (increase—)−977−532−100−220−2153
Total−711−393−126−316−91140
Source: Data provided by the French authorities.
Table 71.Federal Republic of Germany: Balance of Payments Summary, 1965-First Quarter 1967 1(In millions of U.S. dollars)
1966 21967 2
19651966 2First

quarter
Second

quarter
Third

quarter
Fourth

quarter
First

quarter
A. Goods, Services, and Transfer Payments
Exports f.o.b.17,89620,1384,7364,9034,9685,5315,191
Imports c.i.f.−17,474−18,024−4,493−4,534−4,370−4,627−4,075
Other merchandise−200−265−125−97−19−24−86
Trade balance2221,8491182725798801,030
Paid services to foreign troops1,0401,239268297341333287
Other services−1,315−1,508−250−343−544−371−279
Total goods and services−531,5801362263768421,038
Transfer payments−1,465−1,475−389−351−334−401−338
Total−1,518105−253−12542441700
Memorandum item: Goods, Services, and
Private Transfers−650892−1660200648895
B. Long-Term Capital
Bonds−72−163−30−13012−15−58
Shares9−4−47139−55−41−30
Other private long-term capital58953821211313281−10
Advance debt redemption−235−39−196
Other government long-term capital−327−395−86−109−84−116−50
Repayments on post-EPU claims272222
Other Bundesbank assets (increase—) 3−136127494226101
Total90−110981653−277−147
C. Total (A plus B)−1,428−5−155−10995164553
Total, excluding certain extraordinary
transactions4−1,31981−204−11247350552
D. Short-Term Capital, n.i.e. (including
net errors and omissions)
Government short-term capital29751−211144−46−87
Commercial bank short-term credits (net)−72−118−1732540−10−130
Other short-term capital205426124992003157
Net errors and omissions47920617710253−126236
Total909565107340297−179176
E. Commercial Bank Liquid Capital (net)−494
Foreign exchange (increase—) 5−8729−22−36−144231
Foreigners’ deposits (decrease—)112−8−15212−13145−196
Total2521−174−24−157376−690
F. Total (C through E)−494581−22220723536139
G. Official Monetary Movements−3
IMF accounts−164−181−24−118−1−38
Bundesbank liabilities411943−4526−5−48
Foreign exchange (increase—) 5779−537195−136−275−32114
Monetary gold (increase—)−162118892153−2
Total494−581222−207−235−361−39
Source: Deutsche Bundesbank, Monthly Report.
Table 72.Italy: Balance of Payments Summary, 1965-First Quarter 1967 1(In millions of U.S. dollars)
1966 21967 2
19651966 2First

quarter
Second

quarter
Third

quarter
Fourth

quarter
First

quarter
A. Goods, Services, and Transfer Payments
Exports f.o.b.7,0957,9241,8632,0101,9632,0882,093
Imports f.o.b.−6,427−7,575−1,848−1,852−1,848−2,027−2,119
Trade balance6683491515811561−26
Travel (net)1,0611,199134288563214144
Other services (net)17624545413750−13
Transfer payments (net)33134670691179078
Total2,2362,139223569932415183
Memorandum item: Goods, Services, and Private

Transfers
2,3332,248248610947443200
B. Capital Movements (excluding Group D)
and Net Errors and Omissions
Remittances of Italian banknotes 3−314−559−178−103−103−175−229
Foreign investments in Italy 338826047131752554
Italian investment abroad−158−425−20−57−204−144−129
Other private capital and net errors
and omissions−622−62340−211−259−193−141
Advance debt redemption−145−145
Other government capital62−70−26−216−29−11
Total−644−1,562−137−379−530−516−456
C. Total (A plus B)1,59257786190402−101−273
Total, excluding advance debt redemption1,59272286190547−101−273
D. Commercial Bank Capital
Liabilities (decrease—)400426−44515487369−257
Assets (increase—)−1,035−834215−31−664−354385
Total−635−408−230−16−17715128
E. Total (C through D)957169−144174225−86−145
F. Official Monetary Movements
IMF accounts−403−335−39−33−255−8−25
Short-term liabilities8−29−33−20−95
Foreign exchange (increase—)−276235202−16442155170
Other net claims (increase—)11−30−5019−45−3
Monetary gold (increase—)−297−1034112−57−2
Total−957−169144−174−22586145
Sources: Ufficio Italiano dei Cambi (UIC), Movimento Valutario, and Bank of Italy.
Table 73.Japan: Balance of Payments Summary, 1965 First Quarter 1967 1(In millions of U.S. dollars)
1966 21967 2
19651966 2First

quarter
Second

quarter
Third

quarter
Fourth

quarter
First

quarter
A. Goods, Services, and Transfer Payments
Exports f.o.b.8,3339,6392,0702,3072,4992,7632,228
Imports f.o.b.−6,432−7,366−1,700−1,859−1,808−1,999−2,077
Trade balance1,9012,273370448691764151
Government special receipts 3345476101117121137123
Other services and transfer payments−1,315−1,498−388−374−334−402−442
Total9311,25183191478499−168
Memorandum item: Goods, Services, and Private Transfers1,0251,380107225505543−130
B. Long-Term Capital
Private
Direct investment−32−75−17−31−13−14
Other−254−595−85−85−173−252−165
Official−128−138−54−13−31−40−23
Total−414−808−156−129−217−306−188
C. Total (A plus B)517443−7362261193−356
D. Short-Term Capital, n.i.e. (including net errors and omissions)
Nonmonetary short-term capital−62−6412−14−11−5190
Net errors and omissions−51−44547−16−89−18
Total−113−10866−7−27−14072
E. Commercial Bank Capital
Liabilities88−276−45−47−21935252
Assets (increase—)−372−11353−18−90−5849
Total−284−3898−65−309−23301
F. Total (C through E)120−541−10−753017
G. Official Monetary Movements
IMF accounts−35−66−56−1039
Official reserves (increase—)−9899541560−30−42
Other13211515−14
Total−12054−11075−30−17
Sources: Bank of Japan, Balance of Payments Monthly and Economic Statistics Monthly.
Table 74.Netherlands: Balance of Payments Summary, 1965-First Quarter 1967 1(In millions of U.S. dollars)
1966 21967 2
19651966 2First

quarter
Second

quarter
Third

quarter
Fourth

quarter
First

quarter
A. Goods, Services, and Transfer Payments
Exports f.o.b.6,0966,4601,4951,5951,6521,7181,591
Imports f.o.b.−6,596−7,054−1,776−1,772−1,694−1,812−1,784
Trade balance−500−594−281−177−42−94−193
Services (net)5564557292136155118
Transfer payments (net)−3−56−10−18−12−16−12
Total53−195−219−1038245−87
Memorandum item: Goods, Services, and Private Transfers49−150−208−919356−76
B. Long-Term Capital, n.i.e.
Private1580−3843867−15
Official−36−25−5−10−3−7−9
Total−2155−4333560−24
C. Total (A plus B)32−140−262−7087105−111
D. Short-Term Capital, n.i.e. (including
net errors and omissions)
Private nonmonetary−20−212411−9−475
Net errors and omissions−421089228−423057
Total−628711639−51−1762
E. Commercial Bank Caoital
Liabilities (decrease—)397427141135−33184−119
Assets (increase—)−295−332−35−14067−224146
Total10295106−534−4027
F. Total (C through E)7242−40−367048−22
G. Official Monetary Movements
IMF accounts−93−55−14−421−10
Short-term liabilities 3−2−4−1−16−81
Other short-term assets (increase—) 391−95553−77−4031
Monetary gold (increase—)−682626
Total−72−424036−70−4822
Source: Data provided by the Netherlands Bank.
Table 75.Netherlands: Balance of Payments Summary, 1965-First Quarter 1967 1(In millions of U.S. dollars)
1966219672
19651966:First

quarter
Second

quarter
Third

quarter
Fourth

quarter
First

quarter
A. Goods, Services, and Transfer Payments
Exports, seasonally adjusted13,39514,3083,5423,3683,6153,7833,802
Imports, seasonally adjusted−14,148− 14,616−3,743−3,651−3,783−3,439−3,856
Payments for U.S. military aircraft−34−115−20−34−31−30−64
Trade balance, seasonally adjusted−787−423−221−317−199314−118
Services and transfer payments, seasonally adjusted45625795225684233
Total seasonally adjusted−331−166−126−295−143398115
Seasonal influences2882−17161−107
Total, unadjusted−331−166−98−213−3144598
Memorandum item: Goods, Services, and Private
Transfers, unadjusted16433253−73−222574151
B. Long-Term Capital Movements, n.i.e.
Official−235−221− 6950−39−163−17
Private investment (net)
Abroad−997−882−255−280173−174−204
In U.K.563745120255134236277
Total−669−358−20425−78−10156
C. Total (A plus B)−1,000−524−302−188−39235864
Memorandum item:
Loan service, due to U.S. and Canada, but deferred−174
Total (A plus B including loan service)−1,174−524−302−188−39235864
D. Net Errors and Omissions30142189−7396−170431
E. Short-Term Capital Movements, n.i.e.
Miscellaneous capital177−265−28−142−1263114
Foreign currency liabilities (net) of banks−182−453−148−18520−140392
Sterling liabilities (net) other than to central monetary institutions
Sterling area countries46764115308−225−13481
Other−107−43173−213−411120356
Total355−1,08512−232−742−123843
F. Total (C through E)−344−1,567−101−493−1,038651,338
G. Official Monetary Movements
IMF accounts1,391−41−18−258−6−59
Gold deposit liability to IMF83425631
Sterling liabilities (net) to central monetary institutions
Sterling area countries−456−75126179−249−131146
Other countries100
859
-349
37
1,161
10
-1,265
Central bank assistance−50
Swiss loan40—.
Transfer of securities from dollar portfolio to reserves885885
Convertible currency reserves (increase—)−560−420−7983021462−423
Gold reserves (increase—)−129325230−6101263
Total3441,5671014931,038−65−1,338
Memorandum item:
Deferment of loan service, due to U.S. and Canada174
Total (Group G including waiver)5181,5671014931,03865−1,338
Source: U.K. Central Statistical Office, Balance of Payments article in Economic Trends for June 1967
Table 76.United States: Balance of Payments Summary, Seasonally Adjusted, 1965-First Quarter 1967 1(In millions of U.S. dollars)
19661967 2
19651966First

quarter
Second

quarter
Third

quarter
Fourth

quarter
First

quarter
A. Goods, Services, and Transfers (excluding aid)
Exports f.o.b.26,24429,1687,2037,1817,3827,4027,690
Imports f.o.b.−21,472−25,510−6,025−6,225−6,580−6,680−6,689
Export surplus4,7723,6581,1789568027221,001
Net military expenditures−2,047−2,847−652−689−747−759−703
Investment income4,1594,1719941,0641,0221,0911,051
Other services, remittances, and pensions
(excluding aid and military transfers)−964−890−247−223−204−216−271
Total5,9204,0921,2731,1088738381,078
B. Aid and Nonmonetary Sectors’ Selected Capital
Advance repayments on U.S. Government loans22142837226192
Other government capital and grants−3,596−3,874−978−995−985−916−1,205
Direct investment abroad−3,418−3,462−634−1,006−900−922−695
Portfolio investment abroad−1,078−257−252−69−569−154
Foreign direct and portfolio investment in United States−601,35826673092270335
Total−7,931−5,807−1,595−1,333−1,572−1,307−1,719
C. Total (A plus B)−2,011−1,715−322−225−699−469−641
D. Net Errors and Omissions−415−383−233−198277−229−206
E. Short-Term Capital, n.i.e.
U.S. private assets753−413−95−60−27−231−157
Foreign nonliquid capital208322−269817377125
Foreign liquid capital15−31371−28967−16250
Total976−404−50−251213−31618
F. Liquid Liabilities to Foreign Commercial Banks1162,6971624991,070966−993
G. Total (D through F)6771,910−121501,560421−1,181
H. Total (C plus G)−1,334195−443−175861−48−1,822
I. “Official Settlements” 3
Liabilities to foreign official agencies
Nonliquid liabilities13083225263111433335
Liauid liabilities−18−1,595−6−156−1,054−379460
IMF accounts165278−1252233546−31
U.S. convertible currency holdings (increase—)−349−540222−163−426−1731,007
Gold sales1,40683032720917312151
Total1,334−195443175−861481,822
J. Main Categories, without seasonal adjustment
Export surplus1,1541,088440974963
Services and transfers (excluding aid)290149−479476541
Aid and nonmonetary sectors’ selected capital−1,498−1,575−1,228−1,506−2,171
Subtotal−54−338−1,267−56−667
Unrecorded transactions3−38165−51330
Short-term capital, n.i.e.50−325363−492109
Liquid liabilities to foreign commercial banks4043161,144833−751
Subtotal457−471,672−172−612
“Official Settlements”−403385−4052281,279
Memorandum item: change (increase—) in monetary reserve assets net of liquid liabilities
Seasonally adjusted651122165419544
Without seasonal adjustment47149695466243
Source: U.S. Department of Commerce, Survey of Current Business, June 1967.
Table 77.Primary Producing Countries: Balance of Payments Summaries, 1965 and 1966 1(In millions of U.S. dollars)
1965
Exports

f.o.b.

(1)
Imports

f.o.b.

3

(2)
Trade

Balance

(Cols.

1 + 2)

(3)
Services

and

Private

Transfer

Payments

(4)
Goods,

Services,

and

Private

Transfer

Payments

(Cols.

3 + 4)

(5)
Central

Government

Capital

and Aid

(6)
Private

Long-Term

Capital

(7)
Basic

Balance

(Cols. 5

through 7)

(8)
Other

Short-Term

Capital

and Net

Errors

and

Omissions

(9)
Total 4

(Cols.

8 + 9)

(10)
A. More Developed
Primary Producers
Australia2,949−3,284−335−619−954−64517−501143−358
Finland1,427−1,6526−22532−193−538−16096−64
Greece331−1.0316−700423−27741170−6633−33
Iceland129−125 6415510−46
Ireland601−1,0166−415299−116255−5923−36
New Zealand1,042−922120−255−13523−13−12525−100
Portugal632−956−324289−352927212344
South Africa2,587−2,54047−469−422101111−21055−155
Spain1,019−2,778−1,7591,270−489−22322−18966−123
Turkey479−505−2617−911929139−6475
Yugoslavia1,120−1,320 6−200235354277−92−15
Total, Group A12,316−16,129−3,8131,223−2,5902661,261−1,063304−759
B. Less Developed
Primary Producers
Latin America
Argentina1,493−1,199 5294−7422042−11115129180
Bolivia116−127−11−27−38341612113
Brazil1,596−941655−4212341196041345458
Chile688−625 563−101−38111275−3639
Colombia591−424167−180−13417098−3266
Costa Rica112−161−49−22−71424−4338−5
Dominican Republic126−1215−32−277447−398
Ecuador181−15526−50−24816−13−13
El Salvador190−201−11−4−159148−9−1
Guatemala192−214−22−31−53727−1918−1
Haiti38−43−5−13−1851−1210−2
Honduras129−11316−25−9786−15
Jamaica217−255−3810−28614−88
Mexico1,146−1,577 6−43134−39721152−224166−58
Nicaragua149−13316−42−26612−82820
Panama93−193−10064−361417−5−5
Paraguay61−538−16−868617
Peru685−66025−186−1617613247−3314
Trinidad and Tobago413−476 6−63−17−801459−76−1
Uruguay196−12373−56832798−917
Venezuela2,436−1,3241,112−1,118−6145664−86−22
Subtotal, Latin America10,848−9,1181,730−2,256−52662160469910709
Asia
Burma239−209 630−48−18−3−21−6−27
Ceylon401−404 6−32−135−133134
China, Republic of451−523−72−14−865123−12208
India1,678−2,9326−1,254−81−1,3351,132−4−207104−103
Korea176−420−244114−1301164026−224
Malaysia1,226−1,048178−161174596158−13721
Pakistan527−1,040−513−75−5885287010−77−67
Philippines784−808−2413511175−22164−179−15
Singapore918−1,166−248195−533316−44
Thailand609−766 6−15776−817945433780
Viet-Nam41−3716−330109−221263−339−237
Subtotal, Asia7,050−9,687−2,637252−2,3852,354260229−257−28
Middle East
Cyprus66−124−58591101425−421
Iran1,169−847 6322−494−172−16291103−4162
Iraq882−452 6430−402285−47−14−1−15
Israel403−735−332123−209162128811394
Jordan28−157 6−12961−68811144963
Saudi Arabia1,162−480682−584984277217−94123
Syrian Arab Republic169−2166−475588−9−1
United Arab Republic568−959 6−391140−251157−16−11037−73
Subtotal, Middle East4,447−3,970477−1,042−565441448324−50274
Africa
Ethiopia117−133−16−14−30311112416
Ghana321−437−116−107−2235486−8310−73
Ivory Coast286−255 631−71−40361713821
Kenya219−273 6−5437−1740225−223
Libya797−322 6475−388876−28651176
Malawi39−57−18−8−263048412
Morocco436−39541−50−91142107−5651
Nigeria742−749 6−7−270−27760173−445814
Sierra Leone83−94−11−27−38826−41−3
Somalia34−53−19−1−20152−3_−3
Sudan209−213 6−4−38−42237−12−14−26
Tanzania199−1945−6−122−219−145
Tunisia120−251−131−50−18110375−31−2
Subtotal, Africa3,602−3,426176−993−817542375100−991
Total, Group B25,947−26,201−254−4,039−4,2933,9581,6871,352−3061,046
C. Total Primary Producers38,263−42,330−4,067−2,816−6,8834,2242,948289−2287
A. More Developed
Primary Producers
Australia3,083−2,972111−646−535−321416−440490 650
Finland1,505−1,7336−22824−204−1750−17145−126
Greece426−1,1536−727489−23872147−194223
Iceland140−147−7−1−815−264
Ireland680−1,043 6−363320−432070473683
New Zealand1,113−947166−288−12248−4−7815−63
Portugal692−1,067−375430551781153−23130
South Africa2,766−2,338428−452−242910911481195
Spain1,257−3,262−2,0051,377−62813330−285103−182
Turkey494−639−14547−981021721−27−6
Yugoslavia1,220−1,575 6−355323−32−1−337744
Total, Group A13,376−16,876−3,5001,623−1,877−371,221−693845152
B. Less Developed
Primary Producers
Latin America
Argentina1,593−1,124 6469−21625349−10292−188104
Bolivia122−132−10−23−3328127−43
Brazil1,730−1,270460−4184277103 7222222
Chile883−735 6148−186−3815115128−6266
Colombia537−627−90−187−27752−14−239187−52
Costa Rica137−161−24−23−47520−2217−5
Dominican Republic138−161−23−44−6741−266−20
Ecuador187−15334−55−21201110111
El Salvador192−220 6−28−13−411714−10−5−15
Guatemala220−222−2−56−58732−1911−8
Haiti35−44−9−6−1541−1010
Honduras144−13410−28−1866−6104
Jamaica227−283−5617−39914−16259
Mexico1,241−1,6196−37828−35010318−22231
Nicaragua141−150−9−50−591418−27303
Panama102−209−10777−30152−132−11
Paraguay55−58−3−12−1564−54−1
Peru787−74641−224−1832044061−83−22
Trinidad and Tobago425−454 6−29−21−501036−42−2
Uruguay188−164624123681256−3719
Venezuela2,343−1,3121,031−1,087−5654−24 7−26−26
Subtotal, Latin America11,427−9,9781,449−2,515−1,066787610331−51280
Asia
Burma191−178 613−35−22308−17
Ceylon352−425 6−73−4−7737−3−43−10−53
China, Republic of544−586−4231−11−44429−722
India1,532−2,600 6−1,06856−1,01295511−46−21−67
Korea250−680−430204−22615617710711118
Malaysia1,246−1,067179−1745236593−128−35
Pakistan569−863−294−118−41237036−6−3−9
Philippines853−85312412438−44118−135−17
Singapore1,035−1,250−215200−159159615
Thailand680−1,0406−360178−1822753012362185
Viet-Nam26−6676−641334−30743211262128
Subtotal, Asia7,278−10,209−2,931796−2,1352,321332518−224294
Middle East
Cyprus73−133−60602461117
Iran1,291−9156376−584−208923334−268
Iraq959−479 6480−491−112095059
Israel475−733−25892−1661337441−60−19
Jordan35−184 6−14968−81100120727
Saudi Arabia1,503−572931−7861454445234−15876
Syrian Arab Republic169−2936−12465−59−5949−10
United Arab Republic597−945 6−348180−168130−9−47503
Subtotal, Middle East5,102−4,254848−1,396−548438348238−77161
Africa
Ethiopia110−133−23−16−393382−11
Ghana280−321−41−93−1344758−296−23
Ivory Coast325−278 647−98−51251−25261
Kenya260−345−8550−353465510
Libya995−405 6590−4601305−30105−1194
Malawi47−75−28−10−38243−116−5
Morocco449−4454−29−2591369−79−10
Nigeria781−695 686−367−28130188−6335−28
Sierra Leone78−86−8−15−2378−82−6
Somalia30−42 6−12−12101−11
Sudan212−236 6−24−30−5446−2−103−7
Tanzania255−2505−8−3221332−725
Tunisia172−313−141−24−1658655−243−21
Subtotal, Africa3,994−3,624370−1,100−73046031242−1131
Total, Group B27,801−28,065−264−4,215−4,4794,0061,6021,129−363766
C. Total Primary Producers41,177−44,941−3,764−2,592−6,3563,9692,823436482918
Source: International Monetary Fund, Balance of Payments Yearbook.

See Annual Report, 1965, pages 124-32.

See Annual Report, 1965, pages 31-34; 1966, pages 33-35 and 123-25.

The Executive Directors’ Decision on Compensatory Financing of Export Fluctuations, taken on September 20, 1966, is reproduced in Appendix I, pages 159-61.

See Annual Report, 1962, pages 33-36.

See Annual Report, 1964, page 11.

See Annual Report, 1962, pages 36-41.

Selected Decisions of the Executive Directors and Selected Documents (third issue, Washington, 1965), pages 81-83.

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