Chapter

A. The Fund in 1970/71

Author(s):
International Monetary Fund
Published Date:
September 1971
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THIS note supplements the information given in Chapter 3 on the activities of the Fund during the past year. For some aspects of its operations, data covering the period since the Fund’s inception are included. The data do not, however, cover the period after April 30, 1971, the end of the Fund’s fiscal year.

Membership in the Fund and Participation in the Special Drawing Account

Membership in the Fund rose from 115 to 117, and participation in the Special Drawing Account increased from 105 to 110 by the end of 1970/71. The 2 new members, which also became participants in the Special Drawing Account, were the Yemen Arab Republic, which joined the Fund on May 22, 1970 with a quota of $8 million, and Barbados, which joined on December 29, 1970 with a quota of $13 million. In 1970, 3 other members—Iraq, Nepal, and Thailand—that had not previously been participants in the Special Drawing Account, deposited their instruments of participation with the Fund in accordance with Article XXIII, Section 1, of the Articles of Agreement. Having become participants after the start of a basic period, these 5 countries requested that they be included in the next allocation of special drawing rights, and the Fund decided, pursuant to Article XXIV, Section 2(d), of the Articles, that they would start to receive special drawing rights beginning with the allocation on January 1, 1971. The 7 members of the Fund that have not deposited instruments of participation in the Special Drawing Account are Ethiopia, Kuwait, Lebanon, the Libyan Arab Republic, Portugal, Saudi Arabia, and Singapore.

The Board of Governors approved on April 1, 1971 terms and conditions for the admission of Fiji to membership.1 An application for membership by Western Samoa was under consideration at the close of the fiscal year.

The aggregate of quotas of Fund members on April 30, 1971, including quotas of the new members and reflecting the increases in quotas under Board of Governors Resolution No. 25-3 on “Increases in Quotas of Members—Fifth Getieraf Review,” as amended, and other increases shown in Table 44, was $28,478 million, compared with $21,349 million a year earlier. The aggregate of quotas of participants in the Special Drawing Account at the close of 1970/71 was $28,114 million.

Executive Directors

A list of the Executive Directors and Alternate Executive Directors and their voting power on April 30, 1971 is given in Appendix II. Changes in the membership of the Executive Board during 1970/71 are shown in Appendix III.

Article VIII

Ecuador became the thirty-fifth member to accept the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement, effective August 31, 1970. The members that have rendered their currencies convertible under the Articles of Agreement are listed in Table 43.

Par Values

During the year ended April 30, 1971, the Fund concurred in proposals of three members for changes in the par values of their currencies and in the proposal of one member for the establishment of a par value for its new monetary unit. In addition, two members established initial par values for their currencies in agreement with the Fund.

On the proposal of the Government of Turkey, in which the Fund concurred, the par value of the Turkish lira was changed from LT 9 = US$ 1 to LT 15 = US$1, effective August 9, 1970; this represented a devaluation of the lira by 40 per cent. The Government of Ecuador received Fund concurrence in its proposal for a change in the par value of the sucre from S/ 18 = US$1 to S/ 25 = US$1, effective August 17, 1970—a devaluation by 28 per cent. The Fund also concurred in the proposal of the Government of Yugoslavia for a change in the par value of the Yugoslav dinar from Din 12.5 = US$1 to Din 15 = US$1, effective January 23, 1971—a devaluation by 16.7 per cent.

Initial par values were established by agreement between the Fund and the Government of the Democratic Republic of Congo for the zaïre at Z 0.50 = US$1, effective September 2, 1970, and by agreement between the Fund and the Government of the Republic of China for the new Taiwan dollar at NT$40 = US$1, effective September 4, 1970. Both par values were established at the existing rates of exchange.

The Government of Malawi introduced a new decimal unit, the kwacha, to replace the Malawi pound, effective February 15, 1971. A par value for the Malawi kwacha of MK 0.833333 = US$1 was established with the concurrence of the Fund, effective the same date. The change in the monetary unit of Malawi did not involve any appreciation or depreciation of its currency.

The Governments of Ireland and the United Kingdom notified the Fund of the adoption of a decimal system for the Irish pound and the pound sterling, respectively, effective February 15, 1971. These actions did not involve any change in par values.

Quotas

Increases in quotas became effective during 1970/71 for 107 members under Board of Governors Resolution No. 25-3, as amended, on “Increases in Quotas of Members—Fifth General Review,”2 and for 3 members as a result of payment of the fifth and final installments of their quota increases under Board of Governors Resolution No. 20-6, “Increases in Quotas of Members—Fourth Quinquennial Review,”3 completing the increases authorized under the previous general increase. Table 44 shows the details of these increases and the quotas in effect on April 30, 1971 for the members listed. With the two exceptions noted in the table, all consents for quota increases under the Fifth General Review were for the maximum amounts listed in the Annex to the Resolution. Further details on the quota increases are given in Chapter 3.

General Account

Purchases

Table 45 provides data on members’ purchases of currencies from the Fund during 1970/71 by amount and type of purchase. It shows total purchases of $1,167 million, a reduction of $1,828 million, or 61 per cent, from the amount of $2,996 million purchased in 1969/70.4 Purchases by industrial countries (3 members) amounted to $558 million, compared with $2,617 million (by 5 such members) in the previous year. However, purchases by primary producing countries were larger in 1970/71, amounting to $609 million, or 52 per cent of the total; this represented an increase of $231 million or 61 per cent from the corresponding amount in 1969/70. During the past year, 37 primary producing countries also used special drawing rights totaling SDR 288 million to obtain foreign exchange.

Of the total amount purchased in 1970/71, $810 million consisted of gold tranche purchases.5 Twenty-four members, including the 3 industrial countries, made purchases within their gold tranches. The larger part of these, $678 million or 84 per cent, fell within members’ super gold tranches;6 such purchases are not subject to any obligation to repurchase. The largest amount, equivalent to $400 million, was purchased by the United States in two transactions. Italy, South Africa, and Ireland made purchases of $133 million, $125 million, and $20 million, respectively, within their super gold tranches.

Eighteen countries purchased a total of $305 million under their stand-by arrangements. The corresponding purchases in the previous year amounted to $2,261 million, which included purchases by France and the United Kingdom equivalent to $1,985 million.

Nine members—the Central African Republic, Jamaica, Laos, Lesotho, Malawi, Mauritania, Swaziland, Upper Volta, and the Yemen Arab Republic—purchased for the first time in 1970/71. This brought to 79 the number of members that have acquired currencies from the Fund since the inception of operations in 1947.

Table 46 indicates the currencies obtained by members in purchases, together with members’ sales of gold to the Fund for currency.

Stand-By Arrangements

The Fund approved one-year stand-by arrangements that became effective during the past fiscal year for 18 countries in amounts totaling $502 million.7 This was a significant decline from $2,381 million approved in 1969/70. A summary of stand-by arrangements that became effective during each fiscal year since 1952, when such arrangements were instituted, is shown in Table 47. By April 30, 1971, 306 arrangements had been approved for 58 members.

All stand-by arrangements approved during the year were for primary producing countries. Those for 15 countries—Brazil, Burundi, Ceylon, Colombia, Ecuador, El Salvador, Guatemala, Indonesia, Korea, Liberia, Morocco, Nicaragua, Panama, the Philippines, and Turkey—continued to provide financial assistance available from the Fund in the form of stand-by arrangements in the preceding year. Stand-by arrangements were also approved for 3 members that did not have such arrangements in the previous year, namely, Haiti, Uruguay, and Yugoslavia.

A total of $305 million was purchased by 18 members under arrangements in effect during the fiscal year, of which $131 million was under arrangements approved in 1969/70 and $174 million under those approved in 1970/71. Data on these arrangements and their use are shown in Table 48.

Compensatory Financing of Export Fluctuations

In view of the continuing growth in exports from primary producing countries in 1969 and 1970, there was again little use of the compensatory financing facility during the fiscal year 1970/71. Only one member, Burundi, made use of it for an amount of $2.5 million.

Repurchases of drawings under the compensatory financing facility were made by ten members during the year in the amount of $42 million, reducing the amount outstanding on April 30, 1971 to $111 million, from $151 million at the end of the previous year (Table 49). Four members—El Salvador, Haiti, Iceland, and Uruguay—repurchased a total of $15 million, following recommendations made under paragraph (7) of the Compensatory Financing Decision, as a result of export excesses in years following the shortfall year on which the original need for compensatory financing was based. Repurchases also included those by four members under repurchase schedules.

Further, Burma, Haiti, the Syrian Arab Republic, and Uruguay proposed the scheduling of repurchases falling due three years from the dates of purchases under this decision. These proposals were approved by the Executive Directors.

Repurchases

During the fiscal year 1970/71, repurchases amounting to $1,657 million were made by 48 members (Tables 46 and 50). This total was only marginally below that of the previous year. The repurchase of $685 million by the United Kingdom in March 1971 accounted for 41 per cent of the total.

Repurchases equivalent to $139 million, or 8 per cent of the total, were made by 14 members in respect of purchases under stand-by arrangements (excluding those repurchases under schedules approved by the Fund). Of this amount, the equivalent of $20 million was repurchased before the expiration of one year, the equivalent of $14 million before the expiration of two years, and the remainder, $105 million, before or at the expiration of three years from the date of purchase.

The sum of $983 million, or 59 per cent, was repurchased by 16 members in accordance with schedules approved by the Fund, which provided for repurchase within five years from the date of purchase. Of these members, 4 repurchased drawings under the compensatory financing facility. The largest repurchase in accordance with these schedules was that of $685 million by the United Kingdom, relating to its purchase of $1,400 million in June 1968. At the time of this repurchase, the Fund also completed repayment to its creditors under the General Arrangements to Borrow of the amounts borrowed from them in connection with the U.K. purchase in June 1968.

Repurchases also included a record $484 million, or 29 per cent of the total, in discharge of obligations incurred as of April 30, 1970 under Article V, Section 7(b), of the Fund Agreement. This Article provides that, subject to certain limitations, a member shall repurchase an amount of the Fund’s holdings of its currency 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 one half of any increase, or minus one half of any decrease, in the member’s monetary reserves during the same period, or, if the Fund’s holdings of the member’s currency have decreased, one half of any increase in the member’s monetary reserves minus one half of the decrease in the Fund’s holdings of the member’s currency. While 19 members incurred obligations as of April 30, 1970 totaling the equivalent of $1,201 million, Article V, Section 7 (c)(iv), limited the amount to be discharged forthwith to $471 million.8 Three members—Colombia, Guatemala, and Nicaragua—repurchased additional sums totaling the equivalent of $13 million, thereby reducing the balance payable in subsequent financial years to $717 million, of which $460 million was due to be paid as of April 30, 1971.9

Voluntary repurchases were made in accordance with Executive Board Decision No. 7-(648) by 4 members and amounted to $13 million.10 Three of these members—Haiti, Iceland, and Uruguay—repurchased a total of $9 million drawn under the Compensatory Financing Decision. In addition, Trinidad and Tobago completed repurchase of its gold tranche purchase made in June 1968.

Other repurchases amounted to $38 million and included repurchases by 8 members of amounts purchased in connection with increases in their quotas. Also included were repurchases by 4 members relating to purchases under the Compensatory Financing Decision. The equivalent of $7.5 million was repurchased by Iceland in respect of its purchase in March 1969.

The Executive Directors agreed to the requests of 13 members to schedule their repurchases for payment over periods up to five years from the date of purchase.

During the fiscal year 31 members elected to use special drawing rights equivalent to $357 million in repurchase transactions. Repurchases in gold, almost all of which were in discharge of obligations under Article V, Section 7(b), amounted to $15 million. Members discharged repurchases totaling the equivalent of $1,284 million by paying currencies acceptable to the Fund.

Monetary Reserves and Repurchase Obligations

On April 30, 1970 the Fund’s holdings of the currencies of 63 member countries exceeded 75 per cent of their quotas. As noted above, repurchase obligations pursuant to Article V, Section 7(b), of the Fund Agreement were calculated for 19 of these members. The total amounted to the equivalent of $1,201 million, payable in gold, special drawing rights, and convertible currencies, as indicated in Table 51.

Article V, Section 7(c) (iv), limits the amount to be repurchased under Article V, Section 7(b), in any one year to 25 per cent of the quota of the member concerned. This limitation, which applied to the repurchase obligations of 8 members, reduced the total amount to be discharged as of April 30, 1970 to the equivalent of $471 million. Of this total, the equivalent of $15 million was payable in gold, $0.2 million in special drawing rights, and $456 million in convertible currencies. Of the amount payable in convertible currencies, the equivalent of $10 million was calculated in currencies that the Fund could not accept or could accept only up to a limited amount in repurchases as of April 30, 1970 because of the limitation imposed by Article V, Section 7(c)(iii), providing that repurchases shall not be carried to a point at which the Fund’s holdings of any currency required to be used are above 75 per cent of the quota of the member concerned. The currencies that the Fund could not accept or could accept only in limited amounts at that time were Danish kroner, deutsche mark, French francs, Nicaraguan córdobas, pounds sterling, and Swedish kronor. In accordance with Schedule B, paragraph 1(d), of the Fund Agreement and paragraph 1 of Executive Board Decision No. 3049-(70/44),11 U.S. dollars and Japanese yen were selected in substitution for these currencies; U.S. dollars were thus used for amounts equivalent to $9.6 million and Japanese yen for amounts equivalent to $0.2 million.

On April 21, 1971 the Executive Directors decided to change the previously existing system under which (1) each member whose currency was held by the Fund on any April 30 in an amount in excess of 75 per cent of its quota was required to report provisional monetary reserves data to the Fund not later than the following May 31 and (2) all members had to provide final monetary reserves data by October 31. Rule 1-6 of the Fund’s Rules and Regulations was amended to provide that not later than June 30 of each year all members must furnish to the Fund the data necessary for the calculation of their monetary reserves as of the previous April 30. The requirement of reporting monetary reserves data on a provisional basis was abolished.12

Summary of Purchases and Repurchases, 1947–71

Table 52 lists by fiscal years the total purchases and repurchases by member countries since the Fund began exchange operations in 1947. Chart 29 shows the length of time that purchases above 75 per cent of quota have been outstanding at the end of each of the last ten fiscal years. Purchases outstanding on April 30, 1948-71 and amounts not drawn under stand-by arrangements in effect on the same dates are shown in Chart 30.

Canadian Dollars in General Account Transactions

Subsequent to the announcement by the Canadian authorities on May 31,1970 that the exchange value of the Canadian dollar would not be maintained within the prescribed margins from the established par value, the Fund decided to apply the rules of Executive Board Decision No. 321-(54/32), of June 15, 1954, as amended, to transactions and computations involving this currency.13 This has enabled the Fund to continue using Canadian dollars in General Account transactions. Pursuant to Article IV, Section 8, and the above-mentioned decision, the Fund revalued its holdings of Canadian dollars on 12 occasions in the period ended April 30, 1971. Transactions in this currency since May 31, 1970 included two purchases by other members totaling the equivalent of US$12.5 million, and four repurchases, other than those under Article V, Section 7(b), amounting to the equivalent of US$90.3 million.14

Fund Borrowing

The General Arrangements to Borrow (GAB), which enable the Fund to supplement its resources in the General Account by borrowing up to $5.9 billion in currencies of ten industrial member countries, came into force on October 24, 1962 for an initial period of four years. After one renewal for an additional period of four years, the Arrangements were further renewed for five years, from October 24, 1970, without modification. Since they came into effect, the Arrangements have been activated seven times, and total borrowings have amounted to the equivalent of $2,155 million. Total repayments have amounted to the equivalent of $1,881 million, which reduced outstanding GAB borrowings to $274 million on April 30, 1971.15

During the fiscal year ended April 30, 1971, the Fund did not call upon participants to provide credit.

Repayments equivalent to $541 million in the fiscal year included $330 million paid to Italy in July 1970 in compliance with its request. Repayment was made in five currencies. In connection with the repurchase by the United Kingdom in March 1971, an amount equivalent to $70 million was repaid to two creditor members in their currencies. Further, in connection with the discharge by France of part of its repurchase obligation incurred on April 30, 1970 under Article V, Section 1(b), of the Fund Agreement, the Fund repaid in April 1971 a total equivalent to $141 million to three creditors with their currencies.

In August 1966 the Fund borrowed the equivalent of $250 million in lire from the Government of Italy in connection with a purchase of the same amount in Italian lire by the United States. The financial terms of the agreement between the Fund and the Government of Italy were similar to those of the GAB. In June 1970 the Fund consented to Italy’s request for the transfer to Japan of Italy’s claim. Amounts equivalent to $125 million each were transferred to Japan in June and in July 1970. In April 1971 the Fund repaid to Japan an amount of yen equivalent to $125 million.

Details of transactions under the GAB and the bilateral borrowing arrangements are shown in Table 53.

Gold

As can be seen from Table 54, the gold holdings of the Fund rose by the equivalent of $1,575 million in the fiscal year ended April 30, 1971, compared with an increase of $194 million in 1969/70 and a fall of $445 million in 1968/69. Most important in the increase in gold holdings during the fiscal year 1970/71 were gold subscription payments. Further, in September 1970 the Fund reacquired the equivalent of $400 million of gold from the United States, following the reduction in its investment in U.S. Government securities from $800 to $400 million.16 The Fund also received the equivalent of $87 million from members that repurchased their currency from the Fund and from the payment of charges to the Fund. In addition, the Fund purchased the equivalent of $390 million of gold from South Africa under Article V, Section 6(a), and the Fund’s Decision No. 2914-(69/127), adopted December 30, 1969. During the fiscal year the Fund sold $1,086 million of gold in replenishment of its currency holdings, paid $14 million of interest on its borrowings, and paid $9 million in gold as remuneration on creditor positions of members in the Fund.

Purchases of Gold from South Africa

As was noted in last year’s Annual Report, the Executive Directors decided on December 30, 1969 that the Fund, as a matter of policy, would purchase gold from South Africa when it was offered under agreed circumstances. The text of the decision and the texts of letters in connection with the decision were reproduced in that Report.17

Between January 1, 1970 and April 30, 1971, the Fund purchased the equivalent of $672 million of gold from South Africa, of which $283 million was bought in the first four months of 1970 and the remainder, amounting to $390 million, was purchased in the fiscal year ended April 30, 1971.

In light of price developments in the private gold market and also the balance of payments position of South Africa during 1970, the Fund purchased gold from South Africa under each of the main parts of the arrangements of December 1969 during the period to April 30, 1971.

In view of the fact that the price of gold in the London market was fixed at or below $35 a fine ounce for a considerable period during the first quarter of 1970, the Fund purchased the equivalent of $209 million under paragraph 2(a)(i) of the decision. Throughout the fiscal year 1970/71 the price of gold was above $35 a fine ounce, and South Africa sold the equivalent of $295 million of gold to the Fund under paragraph 2(a)(ii) of the decision to meet its current needs for foreign exchange in excess of the needs that it was able to satisfy by the sale of current gold production on the private market. Further, during the first quarter of 1970 South Africa was designated to provide currency convertible in fact to a user of special drawing rights and, for this purpose, sold $4 million of gold to the Fund under paragraph 2(b) of the decision. In addition, under paragraph 2(c) of the decision, South Africa sold the equivalent of $130 million of gold to the Fund during 1970 out of the stock of gold that it held on March 17, 1968—$35 million in the first four months of the year and $95 million in the remaining eight months. These sales, together with sales of gold to monetary authorities (including Fund-related transactions) in the period commencing March 17, 1968, exhausted by the end of 1970 the stock of gold held by South Africa on March 17, 1968, and no further sales can therefore be made under paragraph 2(c) of the decision. Finally, the figures for 1969/70 in Table 54 also include an amount equivalent to $35 million in respect of a request previously made by South Africa to obtain £14.5 million from the Fund’s currency holdings.

Special Drawing Account

Allocations

The Managing Director’s proposal to allocate special drawing rights for the first basic period, adopted as Resolution No. 24-12 by the Board of Governors of the Fund on October 3, 1969, provided for the allocation of approximately SDR 9.5 billion 18 over a basic period of three years from 1970 through 1972.19 Allocations to individual participants are determined by the relative size of participants’ quotas in the Fund on the day before the allocation. The first allocation, on January 1, 1970, was to 104 participants at a rate equal to 16.8 per cent of their quotas and amounted to SDR 3,414 million. The second allocation was made on January 1, 1971 to 109 participants at a rate of 10.7 per cent of their quotas and amounted to SDR 2,949 million.20

The amounts received by participants in each allocation are shown in Table 55.

Transactions and Operations

During the period January 1, 1970 to April 30, 1971, participants used special drawing rights (1) to obtain currency convertible in fact from other participants designated by the Fund; (2) in agreement with other participants, to obtain equivalent amounts of their own currencies held by those participants; and (3) to make repurchases from and pay charges and assessments to the General Account. Transactions between participants have all been subject to the requirement of balance of payments need.21 The use of special drawing rights in the payment of charges to and repurchases from the General Account was authorized by a decision of the Executive Directors in December 1969,22 which was reviewed in December 1970 and is subject to further review. Such transactions are not subject to the requirement of need.

The Articles provide that the Fund may use special drawing rights by agreement with a participant in any operation or transaction with that participant conducted through the General Account. In addition, a participant that is obligated to acquire special drawing rights for certain purposes may obtain them in a transaction with the General Account. During the period under review special drawing rights held in the General Account were used in each of these ways.

Data on operations and transactions in special drawing rights for the period January 1, 1970 to April 30, 1971 are given in Tables 56 and Tables 57. During the fiscal year 1970/71 there were 252 operations and transactions in the Special Drawing Account for a total value of SDR 1,213 million. Including the first four months of 1970 cumulative operations and transactions in special drawing rights have amounted to SDR 1,601 million.

Transactions with Designation

From January 1, 1970 to April 30, 1971 currency convertible in fact was acquired by 42 participants that used special drawing rights in transactions involving designation (Table 57).

Article XXV, Section 5, provides that the Fund shall ensure that participants can use their special drawing rights under Section 2(a) of that Article by the designation of other participants to provide currency for specified amounts of special drawing rights. This is done through quarterly “designation plans,” which set the upper limits for the designation of individual participants in the ensuing months. During the period January 1, 1970 to April 30, 1971 there were, thus, six quarterly designation plans (and an interim amendment to the first plan for 1971 raising the amounts available under it). The number of participants subject to designation in the plans varied from 22 to 28; a total of 37 participants have been subject to designation. Thirty-two participants have been actually designated to provide currency; the total amounts of special drawing rights these participants obtained through designation during the period under review are shown in Table 57.

Currencies and Conversions

As shown in Table 58, participants that used special drawing rights in transactions with designation generally requested U.S. dollars. Requests for French francs and pounds sterling were made by participants with close economic relations with France and the United Kingdom. A request in 1970 for Belgian francs came from a participant that holds its reserves in that currency. Under similar circumstances, Italian lire were provided direct to a participant early in 1971.

At the start of each plan period, participants subject to designation are asked, for reasons of operational convenience, which currency they will provide when designated. Most participants are able to indicate the currency, thus enabling the Fund to issue any necessary conversion instructions at the same time as the designation instructions.

Transactions by Agreement Between Participants

Under Article XXV, Section 2(b)(i), a participant may use its special drawing rights in agreement with another participant to obtain an equivalent amount of its own currency held by the other participant. During the year ended April 30, 1971, the only such agreements were those entered into by the United States with Belgium, the Netherlands, and Rwanda for a total of SDR 286 million. Footnotes 1 and 2 of Table 57 provide details of the amounts of special drawing rights used and acquired by participants in these transactions.

Transfers by Participants to the General Account

During the first four months of 1970 the General Account received SDR 211 million from participants in repurchases and in the payment of charges, and a further SDR 424 million was received in the first full fiscal year, May 1, 1970 to April 30, 1971. The amounts transferred by individual participants during the entire 16 months are shown in Table 57.

Transfers to Participants from the General Account

In the first four months of 1970 the only transfer of special drawing rights by the General Account was the sale of SDR 251,082 to five participants that needed to acquire them in order to meet charges and their share of the assessments payable in special drawing rights. These amounts are included in the first column of Table 59 together with a similar sale of SDR 610,506 made in April 1971.

During the fiscal year ended April 30, 1971, the Fund transferred to participants SDR 151 million in accordance with options exercised by participants to receive special drawing rights rather than other media of payment. Amounts transferred to individual participants are shown in Table 59.

Holdings in the General Account

On April 30, 1971 the Fund’s holdings of special drawing rights in the General Account were SDR 489,849,181.

Consultations with Members

During the fiscal year 1970/71, 86 regular consultations were completed with 83 member countries, an increase from 80 consultations in 1969/70. In addition, at the end of the fiscal year consultation procedures were under way with a number of other members but had not yet been completed. These consultations are of two kinds. Member countries continuing to avail themselves of the transitional arrangements of Article XIV of the Fund Agreement are required to consult with the Fund annually on the retention of restrictions inconsistent with Article VIII, Sections 2, 3, or 4. Over the years the consultation procedure has come to involve full consideration of all relevant aspects of the economic situation of the member. The number of Article XIV consultations held in 1970/71 was 61. During the same period the Fund also held 25 consultations with member countries that have accepted the obligations of Article VIII, Sections 2, 3, and 4. For these members, consultations are not mandatory, but they have been held regularly for a number of years, because both the Fund and the members concerned have found them useful.

Technical Assistance

Reviews of economic developments by the Fund staff and by the Executive Directors, as part of the regular consultations described above, provide opportunities for bringing an international range of experience to the analysis of a country’s position, and these reviews are of value to any country considering alternative policies. In the course of these consultations, as attention is directed to specific problems, the Fund staff, sometimes drawing on the specialized technical assistance departments, is able to provide advice based on the experience of other countries facing similar problems.

The area departments and the Exchange and Trade Relations Department have other opportunities for providing technical assistance in addition to those mentioned in the preceding paragraph. During 1970/71 officers from these departments visited 4 countries in response to requests for advice on economic and financial problems; and in one country, Indonesia, the Fund has maintained a small staff of general financial advisors since 1967. At the end of April 1971 there were in addition Fund representatives on continuing assignment in 14 other countries. The primary responsibility of these staff members is usually related to the continuing consultations with officials of members implementing stabilization programs that are supported by the Fund’s resources. Their presence in these countries has provided convenient opportunities for national officials to draw on the Fund’s experience with a wide range of financial problems.

As in earlier years, however, the Fund’s more specialized technical assistance was carried on largely through the Central Banking Service, the Fiscal Affairs Department, and the Bureau of Statistics. The Fund continued to draw on experts in monetary and fiscal management from outside its regular staff for this assistance. However, the Bureau of Statistics did not make use of outside experts, the Fiscal Affairs Department continued to rely heavily on the work of its own staff, and an increasing share of the Central Banking Service’s work was undertaken by its staff.

During the fiscal year 1970/71, 40 countries received technical assistance from the Fund through the Central Banking Service. Nine of these countries received such assistance for the first time. A total of 82 executive and advisory posts, including 4 involving short-term appointments, were filled by persons drawn chiefly, though not solely, from other central banks.

The policy of supplying professional assistance to central banks continued along the lines established in earlier years, with assignments made to 34 countries and one regional organization during 1970/71. Since the inception of the Central Banking Service in 1963, 47 countries have received such assignments. Sixteen African countries continued to make that continent the most important recipient of this assistance, with 46 officials assigned during the year. Asia and the Western Hemisphere followed with 6 countries each, the Middle East with 5, and Europe with 2. The 82 assignments were undertaken by 79 individuals from 29 countries. Thirteen came from France, 13 from the United States, and 8 from the United Kingdom; 23 came from less developed countries, including 9 from India.

The gradual decline in demands for executive officers for central banks noted in previous Annual Reports continued during 1970/71, with the further replacement of outsiders by national executives. Almost half of the assignments begun in the past fiscal year could be classified under the broad heading of economic research and statistics; most of the remainder were in various specialized fields or focused on specific problem areas—accounting systems, bank inspection, collection of savings, and training programs for bank staff. The increasing demand for persons with special experience in establishing programs for staff training and development may be evidence of an underlying difficulty in reconciling the two objectives basic to the assignment of outside experts: the provision of direct assistance in helping the central bank to function effectively and the training of local officials to take over the work. Under certain circumstances the practical urgency of developing the central bank as a fully functioning institution and the day-to-day burdens of its operations may have to take priority over the more easily postponed—though no less important—task of developing local staff. This potential hazard has been met partly by urging advisors to give greater attention to the training of their successors, but it must be noted also that—possibly because of local circumstances—some recipient countries have occasionally been slow in making available local personnel as understudies.

Fourteen countries received advisory services from the staff of the Central Banking Service in 1970, 6 more than in 1969/70. As in the past, most of the requests for advisory services were related to banking legislation and the establishment of central banks, although advice was also sought on a variety of other matters ranging from the reorganization of the banking system and the review of problems of central bank operations to the establishment of a training institute and problems associated with the use of negotiable instruments. The area, legal, and Treasurer’s staffs collaborated with the Central Banking Service in drafting revisions of banking statutes, in preparation of advisory reports, and in operational and accounting matters.

Efforts have continued to be made to preserve the purely technical character of these advisory services. Their purpose is to assist in the organization or reorganization of financial institutions or systems so that these can function more effectively in the national environment. The underlying aim is to help countries in their efforts to develop and implement sound monetary and financial policies by advising them on how to make their institutional framework more responsive to the long-term needs of their economies; the question of advising on the direction or strength of policy that would be appropriate at any time is therefore outside the scope of the advice provided by the Central Banking Service.

During the past year the Fund, through the Fiscal Affairs Department, provided technical assistance to 22 countries, 3 fewer than in 1969/70; assistance was also furnished for the first time to a regional organization. There were 41 assignments in 1970/71, almost equally divided between members of the staff and of the fiscal panel. Panel-member assignments, mostly of a long-term nature, accounted for about 80 per cent of the total time spent in the field and were mostly related to technical matters. Many of these assignments were extended beyond one year to ensure maximum long-term benefit to local officials. Most of the staff assignments were for periods up to six weeks, related to advice on policy questions, and usually involved a survey of tax systems.

In addition to participation in field technical assistance, staff members were also involved at headquarters in the support and supervision of the work of experts in the field. Review and revision of legislation by members of the staff of the Fiscal Affairs Department in collaboration with the Legal Department absorbed an increased amount of time. The system of monthly correspondence between the field advisor and Fund headquarters not only ensures compatibility in the advice offered on different subjects but also makes available to the man in the field the wide experience of the Fund as a whole. Supplementary visits by senior staff members, mainly to countries where the advisors have been serving on a long-term basis, provide an opportunity to discuss technical issues in detail, to consult with the country authorities on the development of the assignments, and to confirm progress toward self-sufficiency in the particular area.

A wide range of fiscal advice continued to be sought from the Fund, and many countries received assistance on more than one subject. While the year’s activity again emphasized the need for overall review of tax systems, there was a further increase in requests for advice on administering existing taxes and on training tax officials. Work in the budget area was also varied, with a number of countries receiving assistance on budget preparation, expenditure control, accounting, and general financial policy.

Since 1964, when the Fiscal Affairs Department was formed, assistance in this area has been provided to 46 countries, of which about half are African countries. The Fund has drawn on 20 countries to provide fiscal experts for the panel. While the rate of improvement has varied, benefits are visible in a number of countries in the form of better financial laws and administration.

Most of the technical assistance work of the Bureau of Statistics is directed toward the establishment or improvement of central bank bulletins. The Bureau’s activities are based on the premises (1) that there is a body of interrelated statistics that are useful for the formulation of financial and monetary policies, including data on international reserves, money and banking, government finance, balances of trade and payments, prices, production, and the national accounts; and (2) that their assembly and publication in one place are useful for the authorities, the Fund, and others interested in monetary and payments problems. The development and improvement of data contained in these bulletins make it possible to direct technical assistance activities toward specific objectives and to assess progress in quantitative terms.

The Bureau’s project for the establishment or improvement of central bank bulletins, now in its third year, had, through the end of April 1971, provided assistance to 33 countries. During 1970/71, 15 member countries were assisted. There were six new or substantially revised bulletins, published or well along toward publication; two of these bulletins were completely new, three were substantially revised, and one—which had been an internal bulletin—was both substantially improved and published for general circulation.

As in the first year of the project, staff visits to the countries have continued to follow a plan of four two-week visits during a 12-month period rather than long-term residence. This plan permits the use of Bureau staff rather than the employment of outside experts. The intervals between staff visits are intended to allow time for implementation by local technicians of work agreed on between the Bureau staff and the central bank and to increase the opportunities for training staffs of the central banks. In 1971/72 the Bureau expects to assist 20 member countries, of which 15 are participating in the project for the first time and the remainder continuing the work commenced in 1970/71.

The Bureau also provided technical assistance to member countries outside the central bank bulletin project through participation in Fund missions to seven countries in 1970/71. In six of these countries, there was a resulting improvement in the definition of monetary and fiscal statistics. In the other country, the basic balance sheets from which monetary statistics can be compiled were prepared from the central bank’s books, and bank staff was trained to carry on this work.

The IMF Institute

During the past fiscal year, the IMF Institute completed two training courses (one on financial analysis and policy conducted in English and one on balance of payments methodology also conducted in English), which had begun in 1969/70. In addition, the Institute offered five new courses, which were attended by 125 officials from 75 member countries. For most of the year, two courses were conducted concurrently.

As in previous years, the main task of the Institute was the preparation and presentation of the courses on financial analysis and policy. These courses were given in English, in French, and in Spanish, and each lasted 20 weeks. The first course, which started on August 31, 1970, was presented in English, and was attended by 27 participants from 27 member countries. The second course, presented in Spanish, began on October 5, 1970; it was attended by 20 participants coming from 13 countries in Latin America. The third course, conducted in French, began on February 1, 1971, and was attended by 20 officials, most of them from French-speaking African countries.

The courses on financial analysis and policy, which were given for the first time in the spring of 1965, have as their main objectives to consider the modern tools of economic analysis and their application, to present a survey of the instruments of monetary and fiscal policy and a discussion of their effectiveness under different conditions and policy objectives, and to set forth the Fund’s policies and the instruments that are at its disposal for their implementation. These courses draw extensively on the experience gained by the Fund in its contacts with member countries and are geared, in particular, to the needs of developing countries. No course ever repeats the preceding one, and continuous efforts are undertaken to improve the content and the presentation of the courses. During the past fiscal year, further progress was made in integrating more closely the policy and the theoretical parts of the course. The number of sessions dealing with applied statistics was increased. More seminars and practical exercises, requiring active involvement by the participants, were included in the program. Recourse was made to the Joint Fund-Bank Computer Center, and a medium-sized macroeconomic model designed essentially as a teaching tool was simulated several times during the courses to illustrate the consequences of fiscal and monetary policy actions. The number of lectures dealing with the Fund was expanded to cover recent developments, especially with regard to special drawing rights. The enlargement of the professional staff of the Institute also permitted it to maintain closer contacts with the participants through tutorial or counseling sessions.

From May 25 to July 31, 1970, the Institute presented its third course on public finance to a group of 28 participants from 17 countries. This course, which was given in English in collaboration with the Fiscal Affairs Department, consisted of a survey of the field of public finance, with emphasis on the problems of developing countries.

An eight-week course on balance of payments methodology, given in English, ended on April 30, 1971. It was attended by 30 participants from 28 member countries. In describing the principles and methods of collecting and presenting balance of payments statistics, this course, conducted in collaboration with the Balance of Payments Division, took as basic material the fourth edition of the Fund’s Balance of Payments Manual then in preparation.

In addition to organizing its regular courses, the Institute staff again provided lecturers to a number of other institutions. The Institute also received several groups and individuals from member countries and provided them with lectures and source material.

At the beginning of the fiscal year 1971/72, the Institute’s course on public finance was being presented in French, for the first time, to 21 officials from 16 member countries. The program of the Institute for the period August 1971 to July 1972 consists of seven courses: three on financial analysis and policy (in English, French, and Spanish), three on balance of payments methodology (in English, French, and Spanish), and one on public finance (in English).

Relations with Other International Organizations

The maintenance of close cooperation with other international and regional organizations in the economic and financial field is a continuing responsibility that results in Fund staff attendance at meetings of those organizations at various levels—from plenary session to working group—and attendance by the other organizations at the Annual Meetings of the Boards of Governors of the Fund and the World Bank Group, as well as recurring staff contacts and the exchange of pertinent documents and information on matters of mutual concern.

As in past years, Fund staff attended meetings of organs of the United Nations in the area of the Fund’s interests—the General Assembly; the Economic and Social Council (ECOSOC) and its Committee for Development Planning; the Governing Council of the United Nations Development Program; the United Nations Conference on Trade and Development (UNCTAD) Trade and Development Board, its Committee on Invisibles and Financing Related to Trade, Special Committee on Preferences, and other subsidiary bodies; and the regional Economic Commissions for Africa (ECA), Asia and the Far East (ECAFE), Europe (ECE), and Latin America (ECLA). The Managing Director took part, with the heads of other UN bodies, in meetings of the UN Administrative Committee on Coordination (ACC), including its Joint Meeting with the Committee for Program and Coordination in Geneva; the Deputy Managing Director attended an ACC meeting in New York; and staff members represented the Fund in preliminary meetings and subcommittee activities. The Deputy Managing Director represented the Fund at the anniversary meeting of the United Nations in New York on October 24, 1970. The Managing Director also attended the Forty-Ninth Session of the ECOSOC in Geneva and, as customary, addressed that body on the occasion of his presentation of the Fund’s Annual Report at the resumed Forty-Ninth Session in New York.

Among the special meetings held by UN organs during the year, Fund representatives participated in the ECLA Extraordinary Meetings of the Committee of the Whole in New York: the first to review the work of the Commission, and the second to review the situation in Peru following the earthquake disaster; the ECAFE Meeting of Government and Central Bank Officials on Regional Trade and Monetary Cooperation in Bangkok; the ECE Ad Hoc Meeting on Methods for International Trade Projections in Geneva; the UNCTAD Intergovernmental Group on Trade Expansion, Economic Cooperation, and Regional Integration Among Developing Countries and the Inter-Regional Seminar on the Planning of the Foreign Trade Sector, both in Geneva; and the Fourth Session of the UN Commission on International Trade Law, also in Geneva. Fund observers attended the 54th Session of the International Labor Conference and the 182nd Session of the Governing Body of the International Labor Office. The Managing Director took part in the second meeting of the Consultative Committee of the International Chamber of Commerce and the heads of UN economic agencies and the GATT, held in Paris.

Other organizations with which the Fund has active working relations are the International Bank for Reconstruction and Development (IBRD), the General Agreement on Tariffs and Trade (GATT), the Organization for Economic Cooperation and Development (OECD), the Bank for International Settlements (BIS), the Organization of American States (OAS), and the regional development banks. The Managing Director attended a meeting of the OECD Council at the Ministerial Level, and staff representatives attended meetings of the Economic Development and Review Committee, the Economic Policy Committee and its Working Parties 3 and 4, the Board of Management of the European Monetary Agreement, the Development Assistance Committee (including the Ninth Annual High Level Meeting in Tokyo and various working party meetings), the Committee for Invisible Transactions and its Ad Hoc Group on Financial Statistics, the Group of Governmental Experts on Financial Markets, and the Working Group on Short-Term Economic Prospects. Staff observers attended the annual and other regular meetings of the BIS, and maintained liaison with the European Economic Community in Brussels. The Fund was represented at the annual meetings of the Boards of Governors of the African Development Bank in Fort-Lamy, the Asian Development Bank in Singapore, the Caribbean Development Bank in Antigua, and the Inter-American Development Bank in Lima.

As part of its continuing cooperation with the GATT concerning common members, Fund representatives participated in consultations held by the Committee on Balance of Payments Restrictions on import restrictions, import deposit requirements, and import surcharges imposed for balance of payments reasons; they also attended meetings of the Council of Representatives, the Committees on Trade in Industrial Products and Agriculture, and the Working Party on Border Tax Adjustments.

International efforts for the coordination of aid and for debt renegotiation arrangements for members of the Fund are of special interest. In this connection, the Fund participated in meetings of the OECD-sponsored Turkey Consortium and in meetings sponsored by the IBRD and held in Paris of the Ceylon Aid Group; the newly established Consultative Group for the Philippines; the Consultative Groups for Colombia, Ghana, Morocco, Thailand, and Tunisia; and the India and Pakistan Consortia. The Fund continued its participation in meetings of the Inter-Governmental Group on Indonesia for aid coordination convened by the Netherlands Government and the Debt Conference on Ghana convened by the Government of the United Kingdom. Reflecting its interest in commercial credits, Fund representatives attended the annual meeting and an extraordinary general meeting of the Union d’Assureurs des Credits Internationaux (Berne Union).

The Fund’s concern with developments in the commodity area involved staff attendance at the Seventeenth Session of the International Coffee Council in London; the Twenty-Ninth Plenary Meeting of the International Cotton Advisory Committee in Washington; meetings of several bodies of the Food and Agriculture Organization of the United Nations—Committee on Commodity Problems (CCP), Consultative Committee on Tea, Study Group on Rice, Consultative Committee of the CCP Study Group on Jute, Kenaf, and Allied Fibres; the United Nations Wheat Conference 1971, held to negotiate a new International Wheat Agreement to replace the International Grains Agreement 1967, due to expire on June 30, 1971; the UNCTAD Committee on Commodities meetings and the UNCTAD consultations on a draft International Cocoa Agreement; and the International Tin Council’s Interim Committee meeting concerning the transition to the Fourth International Tin Agreement.

In addition, the Managing Director attended a special meeting in Buenos Aires of the Board of Governors of the Inter-American Development Bank (IDB) on the occasion of the installation of the new President of the Bank. Fund staff participated in a meeting in Paris on Latin American external debt arranged by the Atlantic Institute, in cooperation with OAS, IBRD, and IDB, and in a Panel on Foreign Investment in Latin America, convened in Medellin, by the UN secretariat. The Fund was also represented at the First Sub-regional (Andean Area) Meeting of the Latin American Association of Development Financing Institutions held in Lima, the First Meeting of Central Banks of Signatory States of the Andean Subregional Integration Agreement in Quito, and the Second Meeting of National Accounts Experts for Central America in San José. At the request of the Central American Monetary Council, staff members were sent to San José to review work on the Council’s progress report on economic integration within the Central American Common Market. Fund staff continued to participate in meetings of the OAS, particularly the Inter-American Committee on the Alliance for Progress in connection with its annual country reviews and on other matters of mutual interest.

Staff

During the year there were 192 appointments to the Fund’s regular staff and 81 separations. As of April 30, 1971 the staff numbered 1,106 and was drawn from 82 countries. These figures do not include Assistants to Executive Directors.

Income, Expenditures, and Reserves

Income and Expenditures

Except for income from investment, which is credited direct to the Special Reserve, the income of the Fund is almost entirely operating income. It is derived from the charges paid by members on the Fund’s holdings of their currencies in excess of quotas, the service charge on purchases of currency from the Fund, the stand-by charges, and the charges in connection with purchases of gold. Beginning in 1969/70, receipts also include interest on special drawing rights held by the General Account (treated as income) and the assessments to cover the expenses of conducting the business of the Special Drawing Account, levied under Article XXVI, Section 4, on all participants in proportion to their net cumulative allocations (treated as a deduction from expenditure); these amounts are payable in special drawing rights to the General Account.

All charges are payable in gold or special drawing rights, and, at the member’s option, the stand-by charge may be paid in U.S. dollars. However, the provisions of Article V, Section 8(f), of the Fund Agreement permit total or partial payment in a member’s own currency, if that member’s monetary reserves equal less than one half of its quota.

The rate of charges levied on the Fund’s holdings of members’ currencies in excess of their quotas is based on the extent by which the quota level is exceeded by the holdings and also on the time period during which balances have been outstanding. The present schedule of charges, set forth in Table 60, has been in effect since May 1, 1963. An annual review of this schedule took place in April 1971, and the Executive Directors concluded that it should remain unchanged. Included in the table is a service charge equal to ½ of 1 per cent on amounts purchased from the Fund. However, no service charge is payable in respect of gold tranche purchases. There is also a stand-by charge equivalent to ¼ of 1 per cent per annum on the amount of a stand-by arrangement. Stand-by charges are considered income by the Fund only after the expiration or cancellation of the stand-by arrangement, because of possible refunds and other adjustments that may have to be made during the life of the arrangement.

The largest portion of the Fund’s income has been provided by payments of charges on balances of members’ currencies held by the Fund in excess of their respective quotas. On April 30, 1971, 32 members were subject to such charges, compared with 39 members on April 30, 1970. Aggregate payments of these charges during the fiscal year 1970/71 amounted to $128 million, of which $82 million was paid in gold, $41 million in special drawing rights, and $5 million by members in their own currencies in accordance with provisions of Article V, Section 8(f). During the preceding fiscal year, similar charges amounted to $125 million, of which $64 million was paid in gold, $56 million in special drawing rights, and $5 million in members’ own currencies (after adjustment). Since the beginning of Fund operations, 60 members have been subject to such charges.

The remainder of the Fund’s income stems mainly from interest payments received on holdings of special drawing rights by the General Account and from service charges on purchases from the Fund. Interest payments on holdings of special drawing rights amounted to $0.4 million from January 1, 1970, the date of the first allocation, to April 30, 1970; for 1970/71, the first full fiscal year of operations of the Special Drawing Account, a total of $4 million was received. Service charges on purchases from the Fund amounted to $2 million for 1970/71, compared with $12 million for the previous fiscal year. This decrease reflects not only the decline in the total amount of purchases but also the fact that most of these were gold tranche purchases, in respect of which no charges are levied. Assessments to cover the expenses of the Special Drawing Account amounted to SDR 0.9 million.

Beginning with the fiscal year 1964/65, the Fund’s expenditures have included those incurred in connection with borrowings under the General Arrangements to Borrow (GAB) and, since 1966, in respect of a bilateral borrowing from Italy. In June and July 1970 Italy’s claim on the Fund under the bilateral arrangement was transferred to Japan in two installments and, in April 1971, $125 million of this claim was repaid to Japan. Interest payments in gold in accordance with paragraph 9(b) of the GAB and paragraph 3(b) of the bilateral borrowing arrangement amounted to a total of $12 million, compared with $17 million for the preceding year. Total expenditure in 1970/71, however, increased somewhat as a result of the payment of $37 million remuneration to all creditor members of the Fund, against $27 million in 1969/70. Article V, Section 9, of the Fund Agreement provides that remuneration be paid at a uniform rate for all members on the amount by which 75 per cent of each member’s quota exceeded the average of the Fund’s holdings of the member’s currency. In accordance with Rule 1-9 of the Fund’s Rules and Regulations, remuneration is paid as of the end of the Fund’s fiscal year in gold or the member’s currency. In an Executive Board decision adopted on April 29, 1970, members were given the option to receive special drawing rights in place of gold or their own currency.

An analysis of the Fund’s income and its disposition is shown in Table 61.

Reserves

With the exception of the fiscal year 1947/48, the Fund operated with annual losses from the beginning of activity in 1946 through the year ended April 30, 1956. In order to raise current revenue, the Executive Directors decided on January 28, 1956 to invest part of the Fund’s gold holdings in U.S. Government securities with the guarantee that the same quantity of gold could be reacquired upon termination of the investment.

On November 27, 1957 the Executive Directors decided to build up a reserve against future deficits, and to establish a Special Reserve to which the income from investments earned from November 1, 1957 would be placed. The Executive Directors decided on November 30, 1960 to increase this investment to $800 million, at which level it remained until its reduction by $400 million was approved in September 1970.23 The income from investments during the year ended April 30, 1971 amounted to $40 million, compared with $57 million during the previous year. The income for 1970/71 was added to the Special Reserve, increasing the balance to $406 million.

The Fund has had a surplus of income over expenditure in every year beginning with 1956/57. In April 1958 a General Reserve was established, and subsequently the Fund’s net income has been transferred provisionally to the General Reserve at the end of each month, pending action by the Board of Governors at the Annual Meeting.

At the end of April 1970 the General Reserve amounted to $350 million. The Executive Directors recommended to the Board of Governors in September 1970 that $18 million be distributed to members in such amount that the total of remuneration and net income received by each member would be equivalent to 2 per cent on the amount by which 75 per cent of a member’s quota exceeded the average of the Fund’s holdings of its currency during the fiscal year ended April 30, 1970, and that $40 million, the remainder of the net income for the fiscal year, be allocated to the General Reserve. On September 25, 1970 the Board of Governors approved this recommendation. Payments were made to 20 members in the member’s own currency in accordance with the provisions of Article XII, Section 6(b), and to 14 members in special drawing rights in accordance with an option granted in September 1970.24

For the fiscal year 1970/71 the Fund’s operating income was $136 million and total expenditure was $89 million. The income of $46 million was provisionally transferred to the General Reserve pending action by the Board of Governors. The balance in that account was $378 million on April 30, 1971.

Administrative Budget and Audit

The administrative budget approved by the Executive Directors for the period May 1, 1971 to April 30, 1972 is presented in Appendix IV. Comparative income and expenditure figures for the fiscal years ended April 30, 1969, 1970, and 1971 are given in Appendix V.

The Executive Directors requested the Governments of Ireland, Japan, and Sierra Leone to nominate members of the Audit Committee for 1971. The following nominations were made and confirmed: Mr. Seán Mac Gearailt, Secretary and Director of Audit, Office of Comptroller and Auditor General of Ireland; Mr. Masao Fujioka, Deputy Director-General, International Finance Bureau, Ministry of Finance, Japan; Mr. A. S. C. Johnson, Deputy Governor, Bank of Sierra Leone. The report of the Committee is submitted separately. Appendix VI gives the Auditors’ Certificates, together with the audited Balance Sheets of the General Account and the Special Drawing Account as at April 30, 1971, the Statement of Income and Expenditure, the Statement of Reserves, the Statement of Source and Use of Special Drawing Rights, and the audited Balance Sheet of the Staff Retirement Fund as at April 30, 1971.

Publications

Publications of the Fund during the fiscal year included a two-part report by Executive Directors on the mechanism of exchange rate adjustment, several new books, an addition to the Pamphlet Series, and the Fund’s usual publications, including those issued annually or at other regular intervals.

The Role of Exchange Rates in the Adjustment of International Payments: A Report by the Executive Directors was published in English, French, and Spanish in September 1970 and was considered by the Fund’s Governors at their Annual Meeting held later that month in Copenhagen. Other official publications included the Annual Report of the Executive Directors for the Fiscal Year Ended April 30, 1970 (English, French, and Spanish editions and a shorter German edition) and the Twenty-First Annual Report on Exchange Restrictions. Publications relating to official activities included Summary Proceedings of the Twenty-Fifth Annual Meeting of the Board of Governors, Schedule of Par Values (49th, 50th, and 51st issues), and the fourth issue of Selected Decisions of the Executive Directors and Selected Documents (in English, with French and Spanish versions to follow shortly).

New books published during the year included the first comprehensive study of the form and content of stand-by arrangements, The Stand-By Arrangements of the International Monetary Fund, by Joseph Gold, the General Counsel of the Fund and the Director of its Legal Department, and International Reserves: Needs and Availability, containing the papers and proceedings of a seminar held at the Fund in June 1970, in which 22 scholars from various countries and Fund staff members participated. During the year the Fund extended its series on African countries, Surveys of African Economies, with the publication in English of Volume 3, covering the seven members of the West African Monetary Union (Dahomey, Ivory Coast, Mauritania, Niger, Senegal, Togo, and Upper Volta) and with the French version of Volume 2 in the series. At the end of the fiscal year the preparation of Volume 4, on the Democratic Republic of Congo, the Malagasy Republic, Malawi, Mauritius, and Zambia, as well as the French version of Volume 3, were well under way.

In the Pamphlet Series, there was a second edition of No. 13, Special Drawing Rights, and a new pamphlet, No. 14, The Fund’s Concepts of Convertibility. All the pamphlets in this series are being issued in French and Spanish as well as in English. Other publications in preparation at the end of the fiscal year included a second edition of Pamphlet No. 6, Maintenance of the Gold Value of the Fund’s Assets, and a Catalogue of Fund Publications, 1946-70.

In addition to those noted above, regular publications issued during the fiscal year were as follows:

Balance of Payments Yearbook, Volume 22, 1965-69 (monthly, looseleaf, also available in a hardbound edition).

Direction of Trade, monthly, issued jointly with the International Bank for Reconstruction and Development.

Finance and Development, quarterly, issued jointly with the International Bank for Reconstruction and Development (English, French, and Spanish editions and an annual Portuguese language edition issued in Brazil; a new German edition, published in Germany, was inaugurated in September 1970).

International Financial News Survey, weekly.

International Financial Statistics, monthly (in an English edition and a combined English, French, and Spanish edition).

Staff Papers, Volume XVII, Nos. 2 and 3, and Volume XVIII, No. 1.

The Fund has continued its policy of supplying universities in developing countries with one free copy of each of its four subscription publications —Balance of Payments Yearbook, Direction of Trade, International Financial Statistics, and Staff Papers. These publications are also available to university libraries, faculty members, and students at a reduced subscription rate of $10 a year for all four periodicals, or $3 a year for any one of them. The normal annual rates for each publication range from $6 to $10, for a total subscription of $33.50 a year. Except for these four periodicals available on a subscription basis and books, all the publications mentioned above are available free of charge.

Table 43.Countries That Have Accepted Article VIII, April 30, 1971
Effective Date
Memberof Acceptance
ArgentinaMay 14, 1968
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
EcuadorAugust 31, 1970
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
MalaysiaNovember 11, 1968
MexicoNovember 12, 1946
NetherlandsFebruary 15, 1961
NicaraguaJuly 20, 1964
NorwayMay 11, 1967
PanamaNovember 26, 1946
PeruFebruary 15, 1961
Saudi ArabiaMarch 22, 1961
SingaporeNovember 9, 1968
SwedenFebruary 15, 1961
United KingdomFebruary 15, 1961
United StatesDecember 10, 1946
Table 44.Increases in Quotas Board of Governors Resolution No. 25-3, as Amended, Fiscal Year Ended April 30, 1971(In millions of U.S. dollars)
Quota onNewEffective Date
MemberMay 1, 1970Quotaof Change
Afghanistan29.0037.00Dec. 24, 1970
Algeria75.00130.00Dec. 21, 1970
Argentina350.00440.00Dec. 29, 1970
Australia500.00665.00Dec. 4, 1970
Belgium422.00650.00Dec. 29, 1970
Bolivia29.0037.00Nov. 27, 1970
Botswana3.005.00Dec. 16, 1970
Brazil350.00440.00Nov. 27, 1970
Burma48.0060.00Nov. 20, 1970
Burundi15.0019.00Nov. 27, 1970
Cameroon18.20 135.00Dec. 23, 1970
Canada740.001,100.00Dec. 29, 1970
Central African Republic9.50 213.00Dec. 30, 1970
Ceylon78.0098.00Dec. 10, 1970
Chad10.0013.00 3Nov. 27, 1970
Chile125.00158.00Dec. 31, 1970
Colombia125.00157.00Nov. 27, 1970
Congo, Democratic Rep. of90.00113.00Nov. 12, 1970
Congo, People’s Rep. of the10.0013.00Dec. 30, 1970
Costa Rica25.0032.00 3Nov. 30, 1970
Cyprus20.0026.00Dec. 4, 1970
Dahomey10.0013.00Dec. 18, 1970
Denmark163.00260.00Oct. 30, 1970
Dominican Republic32.0043.00Oct. 30, 1970
Ecuador25.0033.00Nov. 4, 1970
El Salvador25.0035.00Dec. 1, 1970
Equatorial Guinea6.008.00Dec. 23, 1970
Ethiopia19.0027.00Oct. 30, 1970
Finland125.00190.00Dec. 1, 1970
France985.001,500.00Dec. 14, 1970
Gabon9.50 415.00Dec. 30, 1970
Gambia, The5.007.00Dec. 28, 1970
Germany1,200.001,600.00Dec. 24, 1970
Ghana69.0087.00Dec. 23, 1970
Greece100.00138.00Nov. 10, 1970
Guatemala25.0036.00Oct. 30, 1970
Guinea19.0024.00Dec. 28, 1970
Guyana15.0020.00Nov. 28, 1970
Haiti15.0019.00Dec. 3, 1970
Honduras19.0025,.00Nov. 27, 1970
Iceland15.0023.00Nov. 4, 1970
India750.00940.00Dec. 24, 1970
Indonesia207.00260.00Nov. 23, 1970
Iran125.00192.00Nov. 12, 1970
Iraq80.00109.00Nov. 23, 1970
Ireland80.00121.00Nov. 30, 1970
Israel90.00130.00Nov. 6, 1970
Italy625.001,000.00Dec. 21, 1970
Ivory Coast19.0052.00Nov. 27, 1970
Jamaica38.0053.00Dec. 21. 1970
Japan725.001,200.00Oct. 30, 1970
Jordan16.0023.00Nov. 19, 1970
Kenya32.0048.00Dec. 4, 1970
Khmer Republic19.0025.00 5Dec. 29, 1970
Kuwait50.0065.00 6Dec. 22, 1970
Laos10.0013.00Nov. 27, 1970
Lesotho3.005.00Nov. 10, 1970
Liberia20.0029.00Dec. 18, 1970
Libyan Arab Republic19.0024.00 7Nov. 27, 1970
Malagasy Republic19.0026.00Dec. 3, 1970
Malawi11.2515.00Nov. 24, 1970
Malaysia125.00186.00Dec. 18, 1970
Mali17.0022.00Dec. 28, 1970
Malta10.0016.00Nov. 27, 1970
Mauritania10.0013.00Nov. 27, 1970
Mauritius16.0022.00Dec. 27, 1970
Mexico270.00370.00Dec. 23, 1970
Morocco90.00113.00Dec. 30, 1970
Nepal10.0010.808Apr. 27, 1971
Netherlands520.00700.00Dec. 28, 1970
New Zealand157.00202.00Dec. 15, 1970
Nicaragua19.0027.00Nov. 13, 1970
Niger10.0013.00Nov. 27, 1970
Nigeria100.00135.00Dec. 8, 1970
Norway150.00240.00Nov. 27, 1970
Pakistan188.00235.00Nov. 27, 1970
Panama28.0036.00Dec. 22, 1970
Paraguay15.0019.00Dec. 23, 1970
Peru85.00123.00Nov. 27, 1970
Philippines110.00155.00Dec. 10, 1970
Rwanda15.0019.00Oct. 30, 1970
Saudi Arabia90.00134.00Apr. 15, 1971
Senegal25.0034.00Dec. 17, 1970
Sierra Leone15.0025.00Dec. 4, 1970
Somalia15.0019.00Nov. 30, 1970
Spain250.00395.00Dec. 24, 1970
Sudan57.0072.00Dec. 16, 1970
Swaziland6.008.00Dec. 7, 1970
Sweden225.00325.00Dec. 15, 1970
Syrian Arab Republic38.0050.00Nov. 30, 1970
Tanzania32.0042.00Dec. 18, 1970
Thailand95.00134.00Dec. 29, 1970
Togo11.2515.00Dec. 26, 1970
Trinidad and Tobago44.0063.00Nov. 4, 1970
Turkey108.00151.00Dec. 23, 1970
Uganda32.0040.00Dec. 29, 1970
United Arab Republic150.00188.00Dec. 29, 1970
United Kingdom2,440.002,800.00Nov. 18, 1970
United States5,160.006,700.00Dec. 31, 1970
Upper Volta10.0013.00Dec. 16, 1970
Uruguay55.0069.00Nov. 4, 1970
Venezuela250.00330.00Nov. 24, 1970
Viet-Nam39.0062.00 9Dec. 8, 1970
Yemen Arab Republic8.00 1010.00 11Dec. 24, 1970
Yemen, People’s Dem. Rep. of22.0029.00Dec. 27, 1970
Yugoslavia150.00207.00Dec. 16, 1970
Zambia50.0076.00Dec. 23, 1970

Increased to $19.00 million, effective May 4, 1970, by payment of the fifth and final installment under the Fourth Quinquennial Review.

Increased to $10.00 million, effective May 25, 1970, by payment of the fifth and final installment under the Fourth Quinquennial Review.

Initially consented to an increase by installments but paid all five installments at the same time.

Increased to $10.00 million, effective May 19, 1970, by payment of the fifth and final installment under the Fourth Quinquennial Review.

Increase under Board of Governors Resolution No. 25-3, as amended by Resolution No. 25-4, effective June 15, 1970.

Kuwait consented to a quota of less than the maximum amount listed in the Annex to Resolution No. 25-3, which was $114.00 million.

The Libyan Arab Republic consented to a quota of less than the maximum amount listed in the Annex to Resolution No. 25-3, which was $67.00 million.

Nepal has consented to an increase in its quota to $14.00 million, to be paid in five installments. The increase to $10.80 million reflects payment of the first installment.

Initially consented to an increase in five installments. The first installment was paid, and Viet-Nam’s increase in quota to $43.60 million became effective on December 1, 1970. The four remaining installments were paid on December 8, 1970, at which time the full increase in quota to $62.00 million became effective.

Quota on May 22, 1970 when the Yemen Arab Republic joined the Fund.

Increase under Board of Governors Resolution No. 25-3, as amended by Resolution No. 26-1, effective December 8, 1970.

Increased to $19.00 million, effective May 4, 1970, by payment of the fifth and final installment under the Fourth Quinquennial Review.

Increased to $10.00 million, effective May 25, 1970, by payment of the fifth and final installment under the Fourth Quinquennial Review.

Initially consented to an increase by installments but paid all five installments at the same time.

Increased to $10.00 million, effective May 19, 1970, by payment of the fifth and final installment under the Fourth Quinquennial Review.

Increase under Board of Governors Resolution No. 25-3, as amended by Resolution No. 25-4, effective June 15, 1970.

Kuwait consented to a quota of less than the maximum amount listed in the Annex to Resolution No. 25-3, which was $114.00 million.

The Libyan Arab Republic consented to a quota of less than the maximum amount listed in the Annex to Resolution No. 25-3, which was $67.00 million.

Nepal has consented to an increase in its quota to $14.00 million, to be paid in five installments. The increase to $10.80 million reflects payment of the first installment.

Initially consented to an increase in five installments. The first installment was paid, and Viet-Nam’s increase in quota to $43.60 million became effective on December 1, 1970. The four remaining installments were paid on December 8, 1970, at which time the full increase in quota to $62.00 million became effective.

Quota on May 22, 1970 when the Yemen Arab Republic joined the Fund.

Increase under Board of Governors Resolution No. 25-3, as amended by Resolution No. 26-1, effective December 8, 1970.

Table 45.Purchases of Currencies from the Fund, Fiscal Year Ended April 30, 1971(In millions of U.S. dollars)
UnderWithinUnder Decision
MemberStand-ByGoldon CompensatoryOther
PurchasingArrangementsTrancheFinancingPurchasesTotal
Afghanistan2.002.00
Burundi1.502.504.00
Central African Republic1.32 11.32
Ceylon11.5011.50
Colombia23.0023.00
Costa Rica1.751.75
Denmark25.0025.00
Dominican Republic7.507.50
Ecuador10.0010.00
El Salvador9.009.00
Ghana2.002.00
Guinea4.204.20
Honduras6.256.25
Indonesia38.0038.00
Iran16.7616.76
Iraq27.2627.26
Ireland20.0420.04
Israel20.0020.00
Italy133.00133.00
Jamaica3.753.75
Laos0.45 10.45
Lesotho0.600.60
Liberia1.001.00
Malawi0.950.95
Mali0.750.75
Mauritania1.00 11.00
Morocco10.0010.00
Nicaragua13.0013.00
Nigeria8.758.75
Panama1.011.01
Peru34.0034.00
Philippines29.5029.50
South Africa125.00125.00
Swaziland1.151.15
Syrian Arab Republic3.003.00
Trinidad and Tobago4.754.75
Tunisia7.507.50
Turkey75.0075.00
United Arab Republic17.5017.50
United States400.00400.00
Upper Volta0.75 10.75
Uruguay27.5012.8740.37
Yemen Arab Republic0.50 10.50
Yugoslavia10.0014.5524.55
Total305.25810.462.5049.201,167.41

Transaction prior to the establishment of an initial par value in accordance with Executive Board Decision No. 1687-(64/22), adopted April 22, 1964. (see Selected Decisions of the Executive Directors and Selected Documents (Fourth Issue, Washington, 1970), page 55.)

Transaction prior to the establishment of an initial par value in accordance with Executive Board Decision No. 1687-(64/22), adopted April 22, 1964. (see Selected Decisions of the Executive Directors and Selected Documents (Fourth Issue, Washington, 1970), page 55.)

Table 46.Currencies Obtained from the Fund by Members in Purchases for Their Own Currencies and for Gold; Currencies, Gold, and Special Drawing Rights Used by Members in Repurchases, Fiscal Year Ended April 30, 1971(In millions of U.S. dollars)
Currencies ObtainedRepurchases
Other
countries
PurchasesAcquisition by(not underUnder
Article V,Article V,
UnitedOthersales ofUnitedSectionSection
MediumStatescountriesgoldTotalKingdom7(b))7(b)Total
SDRs160.0195.41.7 1357.1
Gold215.415.4
Argentine pesos15.00.115.1
Australian dollars5.05.030.015.645.6
Austrian schillings7.010.017.025.0225.0
Belgian francs215.018.010.0243.050.015.4265.4
Brazilian cruzeiros7.47.4
Canadian dollars42.35.047.375.019.30.194.4
Deutsche mark400.6142.0542.62.08.210.2
Finnish markkaa10.410.4
Italian lire30.527.558.012.30.412.7
Japanese yen39.239.2144.8106.00.3251.0
Kuwaiti dinars5.05.0
Mexican pesos14.014.010.08.81.5120.3
Netherlands guilders185.015.0200.0110.058.53.11171.6
Norwegian kroner5.05.010.015.02.7217.7
Pounds sterling41.340.081.3
Spanish pesetas5.05.010.0
Swedish kronor30.0230.0
U.S. dollars126.8140.1266.820.051.8453.51525.3
Total400.0767.4389.61,557.0684.8487.8484.311,656.9

Total includes $13 million repurchased in respects of commitments that had the effect of discharging Article V, Section 7(b), obligations incurred as of April 30, 1970 but due in subsequent years as follows: $1.4 million in SDRs (subject to substitution of currency during the fiscal year 1971/72), $1.4 million in Mexican pesos, $3.0 million in Netherlands guilders, and $7.2 million in U.S. dollars.

Less than $50,000.

Total includes $13 million repurchased in respects of commitments that had the effect of discharging Article V, Section 7(b), obligations incurred as of April 30, 1970 but due in subsequent years as follows: $1.4 million in SDRs (subject to substitution of currency during the fiscal year 1971/72), $1.4 million in Mexican pesos, $3.0 million in Netherlands guilders, and $7.2 million in U.S. dollars.

Less than $50,000.

Table 47.Summary of Stand-By Arrangements That Became Effective During the Fiscal Years Ended April 30, 1953-711(In millions of U.S. dollars)
NumberAmount
1953255.00
1954262.50
1955240.00
1956247.50
195791,162.28
1958111,043.78
1959151,056.63
196014363.88
196115459.88
1962241,633.13
1963191,531.10
1964192,159.85
1965242,159.05
196624575.35
196725591.15
1968322,352.36
196926541.15
1970232,381.28
197118501.70
Total30618,717.57

Includes renewals and extensions for one year or less, except the renewals each six months of the stand-by for Belgium granted in June 1952 until that member purchased the full amount of $50 million in April 1957.

Includes renewals and extensions for one year or less, except the renewals each six months of the stand-by for Belgium granted in June 1952 until that member purchased the full amount of $50 million in April 1957.

Table 48.Fund Stand-By Arrangements for Members, Fiscal Year Ended April 30, 1971(In millions of U.S. dollars)
MemberTotal

Number of

Stand-Bys

Agreed for

Member
Date of

Inception
Date of

Expiration
Amount

Approved

1969/70
Amount Not

Purchased at

Expiration
Amount

Approved

1970/71
Amount

Not Purchased

April 30, 1971
Afghanistan4Oct. 23, 1969Oct. 22, 197012.002.00
Brazil9Feb. 4, 1970Feb. 3, 197150.0050.00
Feb. 4, 1971Feb. 3, 197250.0050.00
Burma1Nov. 24, 1969Nov. 23, 197012.000.01
Burundi6June 8, 1970June 7, 19711.50
Ceylon5Aug. 12, 1969Aug. 11, 197019.50
Mar. 18, 1971Mar. 17, 197224.5017.50
Colombia13Apr. 21, 1970Apr. 20, 197138.5015.50
Apr. 21, 1971Apr. 20, 197238.0038.00
Ecuador8Sep. 14, 1970Sep. 13, 197122.0012.00
El Salvador10July 15, 1969July 14, 197017.0011.00
Dec. 22, 1970Dec. 21, 197114.005.00
France3Sep. 19, 1969Sep. 18, 1970985.00
Ghana4May 29, 1969May 28, 19705.00
Guatemala7Aug. 1, 1969July 31, 197012.006.00
Dec. 28, 1970Dec. 27, 197114.0014.00
Guyana4Apr. 6, 1970Apr. 5, 19713.003.00
Haiti10June 29, 1970June 28, 19712.202.20
Indonesia6Apr. 17, 1970Apr. 16, 197146.308.30
Apr. 22, 1971Apr. 21, 197250.0050.00
Korea7Mar. 13, 1970Dec. 31, 197025.0025.00
Jan. 1, 1971Dec. 31, 197125.0025.00
Liberia8June 1, 1969May 31, 19702.001.00
June 1, 1970May 31, 19712.001.00
Mali4Oct. 23, 1969Oct. 22, 19703.00
Morocco7Dec. 15, 1969Dec. 14, 197025.0015.00
Mar. 18, 1971Mar. 17, 197230.0030.00
Nicaragua9May 26, 1969May 25, 197015.001.00
Aug. 12, 1970Aug. 11, 197114.001.00
Panama5Feb. 3, 1970Feb. 2, 197110.0010.00
Mar. 23, 1971Mar. 22, 197214.0014.00
Peru16Apr. 17, 1970Apr. 16, 197135.001.00
Philippines9Feb. 20, 1970Feb. 19, 197127.50
Mar. 16, 1971Mar. 15, 197245.0025.00
Somalia7Jan. 20, 1970Jan. 19, 19713.983.98
Tunisia6Jan. 1, 1970Dec. 31, 19707.50
Turkey10July 1, 1969June 30, 197027.0017.00
Aug. 17, 1970Aug. 16, 197190.0015.00
United Kingdom9June 20, 1969June 19, 19701,000.00
Uruguay5May 28, 1970May 27, 197113.751
Yugoslavia4Feb. 22, 1971Feb. 21, 197251.7541.75
Total2,381.28169.79501.70341.45

Stand-by, after being fully utilized, was augmented by $6.75 million because of repurchase on October 30, 1970 and by $7 million because of repurchase on November 2, 1970. The full amount of these augmentations was also utilized, and the stand-by was again augmented effective May 1, 1971 in respect of $6.5 million repurchased on April 30 and by $3 million on May 3, 1971. The reconstituted amount of $9.5 million was purchased on May 13, 1971.

Stand-by, after being fully utilized, was augmented by $6.75 million because of repurchase on October 30, 1970 and by $7 million because of repurchase on November 2, 1970. The full amount of these augmentations was also utilized, and the stand-by was again augmented effective May 1, 1971 in respect of $6.5 million repurchased on April 30 and by $3 million on May 3, 1971. The reconstituted amount of $9.5 million was purchased on May 13, 1971.

Table 49.Purchases and Repurchases Under the Decisions on Compensatory Financing of Export Fluctuations1(In millions of U.S. dollars)
PurchasesRelated Repurchases
MemberDateAmountTotalUnder

paragraph (7)

of amended

decision
Outstanding

Balance

April 30, 1971
AfghanistanJune 5, 19684.804.80
BrazilJune 7,196360.00 260.00
BurmaNov. 21, 19677.507.50
BurundiJune 9,19702.502.50
CeylonMar. 21, 196719.504.5514.95
Apr. 17, 196819.3019.30
ColombiaMar. 22, 196718.9018.907.70
Apr. 19, 1968 30.95 30.950.95
Apr. 19, 1968 30.95 30.950.95
Dominican RepublicDec. 6, 19666.604.951.651.65
EcuadorOct. 15, 1969 33.50 33.000.50
Oct. 15, 1969 32.75 32.75
El SalvadorDec. 16, 19696.252.302.303.95
GhanaDec. 20, 196617.250.750.7516.50
GuatemalaFeb. 5, 1968 33.00 33.001.60
Feb. 5, 1968 33.25 33.25
HaitiAug. 11, 19671.300.400.90
Dec. 6, 19671.000.200.200.80
IcelandNov. 10, 19673.753.753.75
Nov. 26, 19683.753.753.75
IndiaDec. 28, 196790.0090.0080.00
IraqNov. 8, 1967 317.50 317.50
New ZealandMay 10, 196729.2029.20
SudanJune 1,196511.25 211.25
Syrian Arab RepublicSep. 18, 19679.502.387.12
United Arab RepublicOct. 15, 196316.00 216.00
Mar. 18, 196823.0023.00
UruguayFeb. 7,19689.505.005.004.50
Total392.75282.03108.60110.72

All items are under the decision as amended by Executive Board Decision No. 2192—(66/81), adopted September 20, 1966, except where noted.

Under Executive Board Decision No. 1477—(63/8), adopted February 27, 1963.

Date and amount of reclassification of previous purchases.

All items are under the decision as amended by Executive Board Decision No. 2192—(66/81), adopted September 20, 1966, except where noted.

Under Executive Board Decision No. 1477—(63/8), adopted February 27, 1963.

Date and amount of reclassification of previous purchases.

Table 50.Repurchases of Currencies from the Fund, Fiscal Year Ended April 30, 1971(In millions of U.S. dollars)
Repurchases in Respect of
Purchases
under stand-bySchedules
MemberarrangeapprovedArticle V,VoluntaryOther
Repurchasingmentsby FundSection 7(b)RepurchasesRepurchasesTotal
Afghanistan3.33.3
Bolivia1.01.0
Brazil75.275.2
Burundi2.00.22.2
Ceylon27.227.2
Chile31.231.2
Colombia35.6 135.6
Costa Rica2.80.33.0
Cyprus0.80.8
Denmark25.625.6
Dominican Republic2.52.5
Ecuador6.36.3
El Salvador5.02.37.3
France246.3246.3
Ghana8.021.029.0
Guatemala7.7 10.78.4
Guinea0.50.5
Haiti2.80.20.23.2
Iceland3.811.315.0
India117.517.5135.0
Jamaica0.10.1
Kenya3.03.0
Korea1.81.8
Liberia4.14.1
Mali3.03.0
Mauritius4.04.0
Morocco14.214.2
Nepal22
New Zealand39.239.2
Nicaragua12.0 112.0
Pakistan9.01.910.9
Panama1.41.4
Peru21.321.3
Philippines5.55.5
Rwanda1.01.0
Sierra Leone3.423.4
Somalia1.91.9
Spain48.748.7
Sudan8.50.69.1
Syrian Arab Republic2.42.4
Trinidad and Tobago3.83.8
Tunisia12.50.412.9
Turkey21.22.824.0
United Arab Republic7.57.5
United Kingdom684.8684.8
Uruguay20.38.24.833.3
Yugoslavia41.31.542.8
Zambia2.62.6
Total138.5983.4484.3 112.538.11,656.9

Total includes $13 million repurchased in respect of commitments that had the effect of discharging Article V, Section 7(b), obligations incurred as of April 30, 1970 but due in subsequent years as follows: $4.4 million by Colombia, $1.4 million by Guatemala, and $7.2 million by Nicaragua.

Less than $50,000.

Total includes $13 million repurchased in respect of commitments that had the effect of discharging Article V, Section 7(b), obligations incurred as of April 30, 1970 but due in subsequent years as follows: $4.4 million by Colombia, $1.4 million by Guatemala, and $7.2 million by Nicaragua.

Less than $50,000.

Table 51.Repurchase Obligations Incurred by Members, as of April 30, 1970(In millions of U.S. dollars)
Amount Payable ForthwithAmount Payable

End of Subsequent Financial Year(s)
MemberTotal

Repurchase

Obligation
GoldSpecial

drawing

rights
Convertible

currencies
TotalGoldSpecial

drawing

rights
Convertible

currencies
Total
Brazil75.275.275.2
Chile 172.20.30.230.831.30.30.340.441.0
Colombia 155.931.331.30.424.324.7
Cyprus0.820.70.8
Denmark25.62.023.625.6
Ecuador 38.21.05.26.30.31.61.9
France 1875.4246.3246.3473.0156.1629.1
Guatemala 37.726.26.31.41.4
Jamaica0.10.10.1
Kenya3.03.03.0
Korea1.8221.71.8
Mauritius 14.64.04.00.60.6
Nepal222
Nicaragua 312.924.74.88.18.1
Peru43.93.218.021.33.419.222.6
Sierra Leone222
Turkey2.80.91.82.8
Uruguay8.28.00.28.2
Zambia2.622.62.6
Total1,200.815.40.2455.6471.3477.50.3251.8729.5

Member has elected to pay in accordance with paragraph 2(c) of Executive Board Decision No. 3049-(70/44), adopted May 20, 1970.

Less than $50,000.

Member has elected to pay in accordance with paragraph 2(a) of Executive Board Decision No. 3049-(70/44), adopted May 20, 1970.

Member has elected to pay in accordance with paragraph 2(c) of Executive Board Decision No. 3049-(70/44), adopted May 20, 1970.

Less than $50,000.

Member has elected to pay in accordance with paragraph 2(a) of Executive Board Decision No. 3049-(70/44), adopted May 20, 1970.

Table 52.Summary of Members’ Purchases and Repurchases, Fiscal Years Ended April 30, 1948-71(In millions of U.S. dollars)
Total Purchases

by Members
Total Repurchases

by Members
1948606.04
1949119.44
195051.8024.21
195128.0019.09
195246.2536.58
195366.12184.96
1954231.29145.11
195548.75276.28
195638.75271.66
19571,114.0575.04
1958665.7386.81
1959263.52537.32
1960165.53522.41
1961577.00658.60
19622,243.201,260.00
1963579.97807.25
1964625.90380.41
19651,897.44516.97
19662,817.29406.00
19671,061.28340.12
19681,348.251,115.51
19692,838.851,542.33
19702,995.651,670.69
19711,167.411,656.86
Total21,597.51 112,534.19 2

Includes purchases that raised the level of the Fund’s holdings of the drawing members’ currencies to no more than 75 per cent of quota. These purchases are not subject to repurchase.

Includes repurchases that reduced the Fund’s holdings of members’ currencies below the amounts originally paid on subscription account and repurchases of members’ currencies paid in settlement of charges. Excludes sales of currencies of members held by the Fund in excess of 75 per cent of quota, as a result of previous purchases, and adjustments due primarily to settlement of accounts with countries that have withdrawn from the Fund; these sales and adjustments have the effect of repurchases.

Includes purchases that raised the level of the Fund’s holdings of the drawing members’ currencies to no more than 75 per cent of quota. These purchases are not subject to repurchase.

Includes repurchases that reduced the Fund’s holdings of members’ currencies below the amounts originally paid on subscription account and repurchases of members’ currencies paid in settlement of charges. Excludes sales of currencies of members held by the Fund in excess of 75 per cent of quota, as a result of previous purchases, and adjustments due primarily to settlement of accounts with countries that have withdrawn from the Fund; these sales and adjustments have the effect of repurchases.

Table 53.Fund Borrowing and Repayment(In millions of U.S. dollars)
Under the General Arrangements to BorrowOther
BorrowingRepaymentTransfer

of claims
UnutilizedBorrowingTransfer

of claim
Repayment
Dec. 1964

to

Feb. 1970
May 1967

to

Dec. 1969
July

1970
March

1971
April

1971
June 1968

and Dec. 1969
Apr. 30,

1971
Aug.

1966
June-

July 1970
April

1971
Belgium137.5147.5+ 10.0150.0
Canada140.050.061.0+ 30.0154.9 1
France240.0100.0-140.0488.92
Germany897.5767.5-130.01,092.93
Italy335.0110.0330.0+ 105.0550.0250.0-250.0
Japan150.045.0+ 85.060.0+ 250.0125.0
Netherlands177.587.540.065.0+ 40.0175.0
Sweden77.532.530.015.0100.0
United Kingdom857.14
United States____________________________2,000.0______________
2,155.01,340.0330.070.0141.05,628.8250.0125.0

Since commitments to lend are expressed in national currency, the Canadian commitment rose from $200 million to $214.3 million, as a result of adjustments made under Decision No. 321—(54/32), adopted June 15, 1954, as amended, and Decision No. 3087-(70/64), adopted July 14, 1970, and as amended.

The French commitment fell from $550 million to $488.9 million with the devaluation of the French franc in August 1969.

The German commitment increased from $1,000 million to $1,092.9 million with the revaluation of the deutsche mark in October 1969.

The U. K. commitment fell from $1,000 million to $857.1 million with the devaluation of sterling in November 1967.

Since commitments to lend are expressed in national currency, the Canadian commitment rose from $200 million to $214.3 million, as a result of adjustments made under Decision No. 321—(54/32), adopted June 15, 1954, as amended, and Decision No. 3087-(70/64), adopted July 14, 1970, and as amended.

The French commitment fell from $550 million to $488.9 million with the devaluation of the French franc in August 1969.

The German commitment increased from $1,000 million to $1,092.9 million with the revaluation of the deutsche mark in October 1969.

The U. K. commitment fell from $1,000 million to $857.1 million with the devaluation of sterling in November 1967.

Table 54.Gold Transactions and Operations by the Fund, Fiscal Years Ended April 30, 1969-71(In millions of U.S. dollars at US$35 a fine ounce)
196919701971
Increases in gold holdings due to
Subscriptions22.225.31,807.8
Repurchases of currency by members69.880.815.4
Charges paid by members30.668.171.2
Reacquisition from United States400.0
Purchases under Article V, Section 6(a)289.0389.6
of which purchases from South Africa282.8389.6
Total increase122.6463.22,684.0
Decreases in gold holdings due to
Sales under Article VII, Section 2(H)547.0250.01,085.8
of which sales in connection with Fifth General Review of Quotas564.1
Interest on Fund borrowing17.117.014.3
Reimbursement and payment of charges3.72.4
Remuneration paid to members8.8
Total decrease567.7269.41,108.9
Net increase or decrease (—)-445.1193.71,575.1
Table 55.Allocations of Special Drawing Rights, January 1, 1970 and 1971(In millions of SDRs)
ParticipantJan. 1,

1970
Jan.1,

1971
Net

Cumulative

Allocation
Afghanistan4.94.08.8
Algeria12.613.926.5
Argentina58.847.1105.9
Australia84.071.2155.2
Austria29.418.748.1
Barbados1.41.4
Belgium70.969.6140.4
Bolivia4.94.08.8
Botswana0.50.51.0
Brazil58.847.1105.9
Burma8.16.414.5
Burundi2.52.04.6
Cameroon3.13.76.8
Canada124.3117.7242.0
Central African Rep.1.61.43.0
Ceylon13.110.523.6
Chad1.71.43.1
Chile21.016.937.9
Colombia21.016.837.8
Congo, Dem. Rep. of15.112.127.2
Congo, People’s Rep. of the1.71.43.1
Costa Rica4.23.47.6
Cyprus3.42.86.1
Dahomey1.71.43.1
Denmark27.427.855.2
Dominican Republic5.44.610.0
Ecuador4.23.57.7
El Salvador4.23.77.9
Equatorial Guinea1.00.91.9
Finland21.020.341.3
France165.5160.5326.0
Gabon1.61.63.2
Gambia, The0.80.71.6
Germany201.6171.2372.8
Ghana11.69.320.9
Greece16.814.831.6
Guatemala4.23.98.1
Guinea3.22.65.8
Guyana2.52.14.7
Haiti2.52.04.6
Honduras3.22.75.9
Iceland2.52.55.0
India126.0100.6226.6
Indonesia34.827.862.6
Iran21.020.541.5
Iraq11.711.7
Ireland13.412.926.4
Israel15.113.929.0
Italy105.0107.0212.0
Ivory Coast3.25.68.8
Jamaica6.45.712.1
Japan121.8128.4250.2
Jordan2.72.55.1
Kenya5.45.110.5
Khmer Republic3.22.75.9
Korea8.45.413.8
Laos1.71.43.1
Lesotho0.50.51.0
Liberia3.43.16.5
Luxembourg3.22.05.2
Malagasy Republic3.22.86.0
Malawi1.91.63.5
Malaysia21.019.940.9
Mali2.92.45.2
Malta1.71.73.4
Mauritania1.71.43.1
Mauritius2.72.45.0
Mexico45.439.685.0
Morocco15.112.127.2
Nepal1.11.1
Netherlands87.474.9162.3
New Zealand26.421.648.0
Nicaragua3.22.96.1
Niger1.71.43.1
Nigeria16.814.431.2
Norway25.225.750.9
Pakistan31.625.156.7
Panama4.73.98.6
Paraguay2.52.04.6
Peru14.313.227.4
Philippines18.516.635.1
Rwanda2.52.04.6
Senegal4.23.67.8
Sierra Leone2.52.75.2
Somalia2.52.04.6
South Africa33.621.455.0
Spain42.042.384.3
Sudan9.67.717.3
Swaziland1.00.91.9
Sweden37.834.872.6
Syrian Arab Republic6.45.411.7
Tanzania5.44.59.9
Thailand14.314.3
Togo1.91.63.5
Trinidad and Tobago7.46.714.1
Tunisia5.93.79.6
Turkey18.116.234.3
Uganda5.44.39.7
United Arab Republic25.220.145.3
United Kingdom409.9299.6709.5
United States866.9716.91,583.8
Upper Volta1.71.43.1
Uruguay9.27.416.6
Venezuela42.035.377.3
Viet-Nam6.66.613.2
Yemen Arab Republic1.11.1
Yemen, People’s Dem. Rep. of3.73.16.8
Yugoslavia25.222.147.3
Zambia8.48.116.5
Total3,414.02,949.26,363.3 1

The precise amount of the two allocations is SDR 6,363,286,600.

The precise amount of the two allocations is SDR 6,363,286,600.

Table 56.Transfers of Special Drawing Rights, January 1, 1970-April 30, 1971(In millions of SDRs)
19701971TotalTotalCumulative

Total
ParticularsJan. 1-

Apr. 30
May 1-

Dec. 31
Jan.Feb.Mar.Apr.Jan.1, 1971-

Apr. 30, 1971
May 1, 1970-

Apr. 30, 1971
Jan.1, 1970-

Apr. 30, 1971
Transfers between participants
Transactions with designation155.01136.18111.6970.4524.804.51211.45347.63502.64
Transactions without designation
(Article XXV, Section 2(b)(i))20.00160.50100.0025.00125.00285.50305.50
175.01296.68211.6970.4549.804.51336.45633.13808.14
Transfers from participants to the General Account
Repurchases182.57109.6721.406.78199.6319.64247.45357.12539.69
Charges28.8563.040.051.461.650.253.4166.4595.30
Assessments0.890.890.890.891.78
Interest received on General
Account holdings0.414.264.264.264.67
212.72172.7121.458.24201.2825.04256.01428.72641.44
Transfers from the General Account to
participants
Replenishment of participants’
currencies67.5155.7055.70123.21123.21
Remuneration18.4018.4018.40
Distribution of net income9.119.119.11
Other10.250.610.610.610.86
0.2595.0256.3156.31151.33151.58
Total use and receipts387.98564.41233.1478.69251.0885.86648.771,213.181,601.16
General Account holdings at end
of period212.47290.16311.61319.85521.13489.85489.85489.85489.85

Transfer of special drawing rights under Article XXVI, Section 5.

Transfer of special drawing rights under Article XXVI, Section 5.

Table 57.Summary of Transactions And Operations in Special Drawing Rights January 1, 1970-April 30, 1971(In thousands of SDRs)
Transactions and OperationsTotal Holdings
Interest,on April 30, 1971
Between participantsCharges,
NetBetween participantsand the General AccountandAs a % of
HoldersCumulativeAssess-alloca-
ParticipantsAllocationsReceived 1Used 2ReceivedUsedments (Net)Totaltions
Afghanistan8,8311,5001,464-395,82866.0
Algeria26,5101,500+ 1928,029105.7
Argentina105,8801,000541-20107,401101.4
Australia155,1558,797+57164,008105.7
Austria48,1258,760+ 13257,017118.5
Barbados1,3911,391100.0
Belgium140,446159,000+951300,397213.9
Bolivia8,8312,0001,205-195,60763.5
Botswana1,0391,039100.0
Brazil105,8804,474+ 17110,370104.2
Burma14,4849,251214-1334,88733.7
Burundi4,5532,586-91,95843.0
Cameroon6,803-26,801100.0
Canada242,02019,40086,771+604348,795144.1
Central African Rep.2,9871,590-101,38746.4
Ceylon23,59011,00012,273-285320.1
Chad3,0711,60052-191,40045.6
Chile37,9061,000186+ 538,725102.2
Colombia37,79920,995-36116,44343.5
Congo, Dem. Rep. of27,211500+ 127,712101.8
Congo, People’s Rep. of the3,0711,650-111,41045.9
Costa Rica7,6243,5004,000-61630.8
Cyprus6,1421,500+67,648124.5
Dahomey3,071-13,070100.0
Denmark55,20410,000-13245,07281.6
Dominican Republic9,9777,450772,475-129
Ecuador7,7313,600483-553,59346.5
El Salvador7,9454,1902,300-351,42017.9
Equatorial Guinea1,864-11,863100.0
Finland41,3301,0003,333+ 1945,682110.5
France325,98024,500+ 16350,496107.5
Gabon3,201-13,200100.0
Gambia, The1,5891,589100.0
Germany372,80072,0516,992+759452,602121.4
Ghana20,90117,589-903,22215.4
Greece31,56626,80067-3514,48314.2
Guatemala8,0522,150-305,87272.9
Guinea5,7604,000559-461,15520.0
Guyana4,6602,450-342,17646.7
Haiti4,5533003,115-421,09624.1
Honduras5,8673,000-172,85048.6
Iceland4,9813,500-201,46129.3
India226,58040,800118,416-912148,05165.3
Indonesia62,59656,0004,757-7501,0891.7
Iran41,54440,000-3881,1562.8
Iraq11,663-211,661100.0
Ireland26,3873,0002,997+ 1426,404100.1
Israel29,03028,12065100-3255501.9
Italy212,00050,88950,0007,984-192220,681104.1
Ivory Coast8,7561,000+ 19,757111.4
Jamaica12,05597513,030108.1
Japan250,20024,3661,610+296276,473110.5
Jordan5,149-15,148100.0
Kenya10,5121,450+411,966113.8
Khmer Republic5,8674,107-311,73029.5
Korea13,7504,000157+3517,628128.2
Laos3,0712,150-2589729.2
Lesotho1,039500-853151.1
Liberia6,4632,879-323,55154.9
Luxembourg5,225-25,223100.0
Malagasy Republic5,974-25,972100.0
Malawi3,495-13,494100.0
Malaysia40,9022,30087+ 3043,319105.9
Mali5,2102,860992-531,30525.0
Malta3,392-13,391100.0
Mauritania3,0712,000-71,06434.6
Mauritius5,04258-24,98298.8
Mexico84,9502,000474+ 1687,439102.9
Morocco27,21115,077-20911,92543.8
Nepal1,0701,070100.0
Netherlands162,260152,9843,708+997319,949197.2
New Zealand47,99026,000-25721,73345.3
Nicaragua6,0812,000221-193,84163.2
Niger3,071-13,070100.0
Nigeria31,245-931,236100.0
Norway50,8804,000+2754,907107.9
Pakistan56,72918,00023,677-42714,62525.8
Panama8,5562,898-315,62765.8
Paraguay4,553-14,552100.0
Peru27,4411,000-528,436103.6
Philippines35,06535,065447-447
Rwanda4,5535001,4001,154-342,46554.1
Senegal7,8385,000-522,78635.5
Sierra Leone5,1952,030-403,12560.2
Somalia4,5531,910-212,62357.6
South Africa55,0005,50035,000-2225,47846.3
Spain84,2656,50010,000+ 180,76695.8
Sudan17,28011,004366,100-212
Swaziland1,8641,000-1684845.5
Sweden72,57550-1972,606100.0
Syrian Arab Republic11,7349,3591372,375-137
Tanzania9,8703,500-416,32964.1
Thailand14,338-214,336100.0
Togo3,495-13,494100.0
Trinidad and Tobago14,1333,1003,750-657,21851.1
Tunisia9,6255,69483,826-1111
Turkey34,30134,0001-302
Uganda9,656-39,653100.0
United Arab Republic45,31633,5002,500-5218,79519.4
United Kingdom709,52090,25120,000295,074-2,396482,30168.0
United States1,583,780105,140285,50039,177+ 1351,442,73291.1
Upper Volta3,071-13,070100.0
Uruguay16,62311,400235,098-148
Venezuela77,3105,500+6382,873107.2
Viet-Nam13,186-413,182100.0
Yemen Arab Republic1,0701,070100.0
Yemen, People’s Dem. Rep. of6,7992,000-154,78470.4
Yugoslavia47,34910,50029,284-4047,16215.1
Zambia16,5322,500____________11+ 819,029115.1
Total Participants6,363,287808,135808,135151,589634,990-6,4485,873,437
General Account_______489,849
Total6,363,2876,363,287

For all but four participants the amounts shown were received in transactions with designation. However, Belgium, Germany, the Netherlands, and Rwanda also received amounts of SDR 145.0 million, SDR 20.0 million, SDR 140.0 million, and SDR 0.5 million, respectively, as a result of transactions under Article XXV, Section 2(b) (i).

With the exception of the amounts for the United States and the United Kingdom, the uses shown for participants in this column were made in transactions to acquire currency through designation. The uses by the United States and the United Kingdom were to obtain balances of their own currency. The recipients of the amounts used are shown in footnote 1.

For all but four participants the amounts shown were received in transactions with designation. However, Belgium, Germany, the Netherlands, and Rwanda also received amounts of SDR 145.0 million, SDR 20.0 million, SDR 140.0 million, and SDR 0.5 million, respectively, as a result of transactions under Article XXV, Section 2(b) (i).

With the exception of the amounts for the United States and the United Kingdom, the uses shown for participants in this column were made in transactions to acquire currency through designation. The uses by the United States and the United Kingdom were to obtain balances of their own currency. The recipients of the amounts used are shown in footnote 1.

Table 58.Currencies Provided and Converted in Transactions with Designation, January 1, 1970-April 30, 1971(In millions of SDRs)
Total

May 1,

1970-

April 30,

1971
Total

January 1,

1970-

April 30,

1971
Belgian francs
Provided directly to participants1.0
French francs
Provided directly to participants3.53.5
Converted to pounds sterling8.08.0
Converted to U.S. dollars14.014.0
25.525.5
Italian lire
Provided directly to participants4.04.0
Pounds sterling
Provided directly to participants27.427.4
Converted to French francs6.76.7
Converted to U.S. dollars45.845.8
80.080.0
U.S. dollars
Provided directly to participants227.1376.0
Converted to French francs3.68.7
Converted to pounds sterling7.57.5
238.2392.2
Total347.6502.6
Table 59.Use of Special Drawing Rights by the General Account, January 1, 1970-April 30, 1971(In thousands of SDRs)
TransfersPayment ofDistributionReplenishment
Participantfor CurrencyRemunerationof Net Incomeof Currencies
Argentina332209
Canada2,00184,770
Dominican Republic77
Finland114783,140
Germany__3,0533,939
Greece67
Israel65
Italy1,5421,1425,300
Japan1,610
Malaysia5037
Mexico474
Netherlands2,0831,625
Philippines447
Sudan36
Sweden50_
Syrian Arab Republic137
Tunisia8
Turkey1
United States9,17730,000
Uruguay23
86218,40319,1152123,210

Includes amounts of less than SDR 500 each paid to an additional six participants.

Includes amounts of less than SDR 500 each distributed to an additional six participants.

Includes amounts of less than SDR 500 each paid to an additional six participants.

Includes amounts of less than SDR 500 each distributed to an additional six participants.

Table 60.Charges on Transactions Effected After May 1, 1963
Charges in per cent per annum 1 for period stated and
for portion of holdings in excess of quota by (per cent)
More than 050100
But not more than50100
Service charge 20.50.50.5
0 to 3 months0.00.00.0
3 to 6 months2.02.02.0
½ to 1 year2.02.02.5
1 to 1½ years2.02.53.0
1½ to 2 years2.53.03.5
2 to 2½ years3.03.54.0 3
2½ to 3 years3.54.0 34.5
3 to 3½ years4.0 34.55.0
3½ to 4 years4.55.0
4 to 4½ years5.0

Except for service charge, which is payable once per transaction and stated as per cent of amount of transaction.

No service charge is payable in respect of any gold tranche purchase effected after July 27, 1969.

Point at which the Fund and the member consult.

Except for service charge, which is payable once per transaction and stated as per cent of amount of transaction.

No service charge is payable in respect of any gold tranche purchase effected after July 27, 1969.

Point at which the Fund and the member consult.

Table 61.Income and Expenditure, Fiscal Years Ended April 30, 1962-71(In millions of U.S. dollars)
1962196319641965196619671968196919701971
Income 1
Operational—service and stand-by
charges, etc.11.76.64.911.815.67.17.414.613.47.5
On balances in excess of quotas21.424.431.535.965.782.582.0107.5124.7128.1
Total33.131.036.447.781.389.689.4122.1138.1135.6
Expenditure
Administrative (and property)8.29.613.117.620.721.421.828.934.3 239.9 2
Operational
Remuneration27.237.4
Other4.616.117.811.922.319.111.8
Total8.29.613.122.236.839.233.751.380.689.2
Net Income 325.021.523.225.544.550.455.770.857.646.4

Excludes income from investments transferred to the Special Reserve.

Net of assessments of $0.9 million in both 1970 and 1971 in respect of Special Drawing Account operational expenses.

Transferred to General Reserve until the fiscal year ended April 30, 1968. Of the $55.7 million, $70.8 million, and $57.6 million net income in 1968, 1969, and 1970, respectively, $18.3 million, $38.9 million, and $40.0 million were transferred to General Reserve and $37.5 million, $31.9 million, and $17.6 million were distributed under the provisions of Article XII, Section 6(a) and (b), of the Fund Agreement at a rate of 1½ per cent to members that had a super gold tranche position in the Fund during the 1968 and 1969 fiscal years and in amounts which raised the total return from remuneration and distribution of net income to 2 per cent for 1970. Pending action by the Board of Governors, the net income for the fiscal year ended April 30, 1971 has been provisionally transferred to the General Reserve.

Excludes income from investments transferred to the Special Reserve.

Net of assessments of $0.9 million in both 1970 and 1971 in respect of Special Drawing Account operational expenses.

Transferred to General Reserve until the fiscal year ended April 30, 1968. Of the $55.7 million, $70.8 million, and $57.6 million net income in 1968, 1969, and 1970, respectively, $18.3 million, $38.9 million, and $40.0 million were transferred to General Reserve and $37.5 million, $31.9 million, and $17.6 million were distributed under the provisions of Article XII, Section 6(a) and (b), of the Fund Agreement at a rate of 1½ per cent to members that had a super gold tranche position in the Fund during the 1968 and 1969 fiscal years and in amounts which raised the total return from remuneration and distribution of net income to 2 per cent for 1970. Pending action by the Board of Governors, the net income for the fiscal year ended April 30, 1971 has been provisionally transferred to the General Reserve.

Chart 29.Length of Time for Which Purchases Have Been Outstanding on April 30, 1962-71

(In billions of U.S. dollars)

Chart 30.Outstanding Purchases from the Fund and Amounts Not Purchased Under Existing Stand-By Arrangements, on April 30, 1948-71

(In billions of U.S. dollars)

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

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