Chapter

Appendix VIII

Author(s):
International Monetary Fund
Published Date:
September 1980
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VIII. Financial Statements of the General Resources Account, Special Drawing Rights Department, Subsidy Account, Trust Fund, and Staff Retirement Fund

General Resources Account

Report of the External Audit Committee

General Department

Washington, D.C. June 27, 1980

Authority for the Audit

The audit for the year ended April 30, 1980 was carried out pursuant to Section 20(b) of the By-Laws of the International Monetary Fund.

Scope of the Audit

We have examined the balance sheet of the International Monetary Fund, General Department—General Resources Account, as at April 30, 1980, and the related statements of income and expense, reserves and changes in financial position for the year then ended.

Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records, after evaluating the extent and results of the tests which we observed to have been carried out by the Internal Auditor, and such other auditing procedures as we deemed necessary in the circumstances.

Audit Opinion

In our opinion, the financial statements referred to above give a true and fair view of the financial position of the International Monetary Fund, General Department—General Resources Account, as at April 30, 1980, and the results of its operations and transactions and changes in reserves and financial position for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

External Audit Committee:

/s/ Robert Toulemon, Chairman (France)

/s/ Pedro Osvaldo Montórfano (Paraguay)

/s/ Gamini C.B. Wijeyesinghe (Sri Lanka)

International Monetary Fund

General Department (NOTE1)

General Resources Account

General Resources Account

Balance Sheet

as at April 30, 1980

Amounts expressed in special drawing rights (Note 2)

Assets19801979
Currencies and Securities (Notes 3 and 438,670,821,73739,566,726,681
Special Drawing Rights1,406,997,4171,289,908,976
Gold with Depositories (Note 2)3,635,906,9154,054,521,924
Subscriptions to Capital—Receivable2,370,0537,700,000
Charges Receivable(NOTE 4)116,251,529152,298,213
Accrued Charges (NOTE 4)18,159,439
Other Assets (Note 2)6,748,3249,917,387
Total Assets43,857,255,41445,081,073,181
Capital, Reserves, and Liabilities
Capital
Subscriptions of Members39,016,500,00039,011,200,000
Reserves (NOTE 6)763,202,027760,109,459
Liabilities
Borrowing (Note 5)3,753,464,7125,033,930,805
Remuneration Payable to Members (Note 4)240,985,666171,742,842
Interest Payable53,636,54493,745,621
Accrued Interest15,183,502
Other Liabilities14,282,96310,344,454
1Total Capital, Reserves, and Liabilities43,857,255,41445,081,073,181
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ W.O. Habermeier/s/ J. de Larosiere
TreasurerManaging Director

International Monetary Fund

General Department (NOTE1)

General Resources Account

Statement of Income and Expense

for the year ended April 30,1980

Amounts expressed in special drawing rights (Note 2)

19801979
Operational Income
Periodic charges (Note 4)519,350,571678,101,586
Interest on holdings of special drawing rights81,813,36157,121,423
Service charges11,054,0116,195,930
Other1,946,84211,873,320
614,164,785753,292,259
Operational Expense
Remuneration (Note 4)240,985,666171,742,842
Interest on borrowing284,009,947458,072,124
Other7,7053,891,827
525,003,318633,706,793
Net Operational Income89,161,467119,585,466
Administrative Expense
Administrative budget
Personnel (Note 7)61,893,49353,854,586
Travel10,663,5987,771,360
Other (Note 2)10,404,4139,591,310
Total administrative budget82,961,50471,217,256
Less recovery of expenses of conducting the business of the Special
Drawing Rights Department and the Trust Fund1,700,0042,600,480
Net administrative budget81,261,50068,616,776
Fixed property (Note 2)349,53221,468
Amortization of past service liabilities (Note 7)4,392,7084,711,155
Net valuation adjustment65,15987,699
Total Administrative Expense86,068,89973,437,098
Net Income3,092,56846,148,368
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

International Monetary Fund

General Department (NOTE1)

General Resources Account

Statement of Reserves

for the year ended April 30, 1980

(Note 6)

Amounts expressed in special drawing rights

(Note 2)

19801979
Special Reserve Balance at beginning of year394,529,756348,381,388
Add net income for year3,092,56846,148,368
Balance at end of year397,622,324394,529,756
General Reserve Balance at beginning and end of year365,579,703365,579,703
Total Reserves763,202,027760,109,459
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

International Monetary Fund

General Department (NOTE 1)

General Resources Account

Statement of Changes in FinancialPosition

for the year ended April 30, 1980

Amounts expressed in special drawing rights

(Note 2)

19801979
Resources were applied to:
Repayments of borrowing: Oil facility1,782,859,1562,072,049,579
General Arrangements to Borrow and Swiss National Bank1,730,000,000
1,782,859,1563,802,049,579
Increase in holdings of special drawing rights117,088,441(81,171,160)
1,899,947,5973,720,878,419
Resources were provided by:
Decrease in currency holdings:
Changes in holdings which did not affect amounts on which the Fund levies charges or pays remuneration438,428,909(7,160,793,064)
Changes in holdings which reduced creditor positions on which the Fund pays remuneration(379,892,087)(243,247,148)
Changes in holdings which decreased
amounts on which the Fund levies charges837,368,1223,192,822,309
895,904,944(4,211,217,903)
Subscriptions:
Increases in quotas6,655,000,000
Subscriptions of new members5,300,0009,800,000
5,300,0006,664,800,000
Borrowing:
General Arrangements to Borrow777,254,000
Supplementary financing facility502,393,063
Sales of gold418,615,009452,534,536
Increase in the excess of other
liabilities over other assets74,642,013(8,640,582)
Net income3,092,56846,148,368
1,899,947,5973,720,878,419
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

International Monetary Fund

General Department

Notes to the Financial Statements

1.General Department

Under the Articles of Agreement, the General Department consists of the General Resources Account, the Special Disbursement Account, and the Investment Account. The Special Disbursement Account and the Investment Account are not operative. All operations and transactions on the account of the Fund are conducted through the General Resources Account.

General Resources Account

Assets held in the General Resources Account comprise gold, currencies of the Fund’s member countries, and special drawing rights (SDRs). The Fund’s resources in the General Resources Account are made available to members in accordance with the Fund’s policies either in the form of currencies or SDRs which members purchase against the payment of their own currencies. The amount of such use is related to a member’s quota in the Fund.

In addition to purchases under the Fund’s regular facilities, members may use the Fund’s resources under decisions on compensatory financing (to assist members, particularly primary exporters, encountering payments difficulties produced by temporary shortfalls attributable to circumstances beyond their control) and buffer stock financing (to assist members in connection with the financing of international buffer stocks of primary products), the extended Fund facility (to provide medium–term assistance to members to make structural adjustments in their economies), and the supplementary financing facility (to assist members facing serious payments imbalances that are large in relation to their quotas). Members were also able to use the oil facility (for balance of payments problems caused by increases in the cost of petroleum and petroleum products). Use of the Fund’s resources is dependent on members having a balance of payments need.

Gold transactions, receipt of SDRs in payment of charges and repurchases by members, and use of SDRs by the Fund, take place through the General Resources Account.

2. Accounting Practices

Unit of Account

The accounts of the General Resources Account are expressed in terms of the SDR, the currency value of which is determined by a standard basket of the currencies of sixteen members. Members’ currencies and securities are converted into equivalent amounts of SDRs on the basis of representative rates of exchange determined in accordance with decisions of the Executive Board. Gold with depositories is valued on the basis that one unit of special drawing rights is equivalent to 0.888671 gram of fine gold.

Property, Furniture, and Equipment

The established policy of the Fund is to charge as an expense of each accounting period the total costs incurred for fixed property, furniture, and equipment. For the year ended April 30,1980, the cost of property, furniture, and equipment charged as an expense amounted to SDR 952,633 (SDR 300,095 in 1979).

Income and Expense

The Fund maintains its books of accounts on an accrual basis and accordingly follows a policy of recognizing income as it is earned and of recording expenses as they are incurred. It is the practice of the Fund to make all calculations on the basis of the exact number of days in the accounting period.

3. Currencies and Securities

Each member has the option to substitute nonnegotiable and noninterest-bearing securities for that amount of the member’s currency held by the Fund which is in excess of ¼ of 1 per cent of the member’s quota.

On April 17, 1980, the Fund decided that the Government of the People’s Republic of China shall represent China in the Fund and shall exercise all the rights and meet all of the obligations of China as the member in the Fund. On that date the Fund’s accounts maintained in new Taiwan dollars totaling SDR 442,364,513 were closed. Currency equivalent to this amount, reported as a part of the Fund’s currency holdings, is to be paid to the Fund by the People’s Republic of China following the designation of an agreed depository and the determination of a representative rate of exchange.

A currency held by the Fund is revalued whenever that currency is used by the Fund in a transaction with another member, or for such other purposes as the Fund may decide. All currency holdings are revalued as at April 30 each year. Whenever the Fund revalues its holdings of a member’s currency, an account receivable or an account payable is established for the amount of currency payable by or to the member in order to maintain the value of the currency in terms of the SDR. The balances of the accounts receivable or payable are reflected in the Fund’s currency holdings. At April 30, 1980, accounts receivable amounted to SDR 1,981,984,272 and accounts payable amounted to SDR 429,168,363.

4. Operational Transactions

During the year ended April 30, 1980, members’ purchases amounted to SDR 2,433 million of which SDR 222 million was in the reserve tranche, SDR 1,106 million was under the Fund’s regular policies, SDR 863 million was under compensatory financing, SDR 26 million was under buffer stock financing, and SDR 216 million was under the extended Fund facility. Of the total purchases, SDR 502 million was financed under the supplementary financing facility. Over the same period, repurchases by members totaled SDR 3,776 million. Purchases in the reserve tranche made after April 1, 1978 are not subject to repurchase.

Outstanding purchases of members were as follows (in millions of SDRs):

April 30
19801979
Reserve tranche144314
Regular facilities2,2932,316
Compensatory financing2,8732,945
Buffer stock financing7448
Extended Fund facility504407
Oil facility2,4944,240
Supplementary financing facility
Under stand-by arrangements383
Under extended arrangements119
Total8,88410,270

The Fund levies charges on its holdings of a member’s currency to the extent that the holdings (i) have been acquired under a policy that has been the subject of an exclusion, or (ii) exceed the member’s quota after deducting holdings that are the subject of an exclusion. Remuneration is paid on the amounts by which 75 per cent of a member’s quota on April 1, 1978, adjusted for increases or decreases in the member’s quota after that date, exceeds the Fund’s holdings of the member’s currency after deducting amounts that are the subject of an exclusion. At April 30, 1980, the total holdings on which the Fund levies charges amounted to SDR 8,035 million and total creditor positions on which the Fund pays remuneration amounted to SDR 3,393 million.

Members incur certain obligations to the Fund with the use of Fund resources from the General Resources Account. One member, Democratic Kampuchea, has not fulfilled its financial obligations to repurchase a part of the Fund’s holdings of the member’s currency, to pay charges on currency balances held by the Fund, and to submit information on monetary reserves. At April 30, 1980, unpaid charges receivable from Democratic Kampuchea amounted to SDR 3,383,707 and are included in the balance sheet as charges receivable and as a deferred credit. On December 19, 1978 the Executive Board decided that Democratic Kampuchea may not make use of the general resources of the Fund until such time as Democratic Kampuchea is fulfilling its obligations under the Articles of Agreement to which Article XXVI, Section 2(a) applies.

5. Borrowing

Outstanding borrowing by the Fund at April 30, 1980 and 1979 was as follows:

19801979
Oil facilitySDR 2,473,817,649SDR 4,256,676,805
Supplementary financing facility502,393,063
General Arrangements to Borrow777,254,000777,254,000
SDR 3,753,464,712SDR 5,033,930,805

Oil Facility

The Fund has entered into borrowing agreements with various members and Switzerland, or institutions within their territories, under which these lenders agreed to provide the Fund with specified currencies to finance purchases of currencies from the Fund by other members under the oil facility. The outstanding borrowings carry interest rates of 7 per cent for amounts called under the 1974 borrowing agreements and 7¼ per cent for amounts called under the 1975 borrowing agreements. Any calls made by the Fund under these agreements are repayable in installments beginning not later than 3½ years, to be completed not later than 7 years, after the date of the calls, except that the calls under the borrowing agreements with Canada and the Deutsche Bundesbank are repayable at the end of five years.

Supplementary Financing Facility (SFF)

The supplementary financing facility entered into force on February 23, 1979. The Fund has entered into borrowing agreements with 14 members, or institutions within their territories, and with the Swiss National Bank under which the lenders have agreed to make resources available to the Fund, at call, up to SDR 7.784 billion over the next four years to finance purchases by members under this facility. Interest paid by the Fund on amounts borrowed under the borrowing agreements is based on the average yield on U.S. Government securities with a constant maturity of five years. The first calls were made under the SFF borrowing agreements during the year ended April 30, 1980.

General Arrangements to Borrow (GAB)

Ten members, or institutions within their territories, have adhered to the General Arrangements to Borrow under which the Fund may borrow their currencies up to specified amounts when supplementary resources are needed to forestall or cope with an impairment of the international monetary system. These arrangements first became effective from October 24, 1962 and were renewed until October 23, 1985. The Swiss Confederation has been associated with the GAB since June 1964. The present arrangement with the Swiss Confederation expires on October 23, 1980. The Fund pays a transfer charge of one-half of one per cent on amounts borrowed under these arrangements and, in addition, pays interest at the rates at which the Fund levies charges on the holdings of currencies resulting from purchases for which it incurred the indebtedness, provided that the rate of interest shall be not less than 4 per cent per annum on any part of the indebtedness. Any calls made by the Fund under the GAB are repayable within five years.

At April 30, 1980, the interest rate being paid by the Fund on indebtedness under the General Arrangements to Borrow was 4 per cent per annum.

6. Reserves

The Fund determines annually what part of its net income shall be placed to the General Reserve or to the Special Reserve, and what part, if any, shall be distributed. The Fund may use the Special Reserve for any purpose for which it may use the General Reserve, except distribution.

Income from investments in U.S. Government securities was placed to the Special Reserve from November 1, 1957 until February 15, 1972 when the investment program was terminated. A decision by the Executive Board provides that any administrative deficit for any financial year must be written off first against this Reserve.

Net income for the year ended April 30, 1980 was placed to the Special Reserve by decision of the Executive Board.

7. Other Compensations and Benefits

The Fund pays various allowances to or on behalf of Executive Directors and staff including the employer’s contribution to the Staff Retirement Plan. All contributions to the Plan and all other assets, liabilities, and income of the Plan are held separately and can be used or incurred only for the benefit of the participants in the Plan and their beneficiaries. The funding of the Plan is based upon a percentage of a notional gross salary, and the employer contributes that part of the costs and expenses of the Plan not provided by the contributions of the participants.

A past service liability amounting to SDR 17,570,796, resulting from certain improvements in the benefits provisions of the Plan and changes in the rates of contribution and funding arrangements which were approved in August 1976, was discharged on September 1, 1976 by a payment from the General Resources Account to the Staff Retirement Plan. This amount was charged against the income of the General Resources Account over a period of four years. Accordingly, SDR 4,392,696 was charged against income in 1977, 1978, and 1979, and the remaining balance amounting to SDR 4,392,708 was charged against income in 1980. A past service liability amounting to SDR 318,459 resulting from plan amendments approved in June 1978 was paid and charged against income in the year ended April 30, 1979.

Experience gains and losses of the Plan, as determined by the actuary engaged by the Pension Committee, are amortized over a period of 15 years. The unamortized experience losses at April 30, 1980 amounted to SDR 39.6 million (calculated at the SDR value of the U.S. dollar on that date). Payments over the next 15 years to amortize the actuarial experience losses are estimated to be approximately SDR 55.2 million (at the April 30, 1980 SDR/US$ rate), of which SDR 4.2 million was paid after April 30, 1980.

Contributions by the employer to the Staff Retirement Fund for the year ended April 30, 1980 amounted to SDR 11,964,939, including SDR 2,845,570 for the amortization of actuarial experience losses (SDR 2,609,567 in 1979) and SDR 1,778,217 to fund cost of living supplements to beneficiaries (SDR 1,515,758 in 1979).

Special Drawing Rights Department

Report of the External Audit Committee

Washington, D.C. June 27, 1980

Authority for the Audit

The audit for the year ended April 30, 1980 was carried out pursuant to Section 20(b) of the By–Laws of the International Monetary Fund.

Scope of the Audit

We have examined the balance sheet of the International Monetary Fund, Special Drawing Rights Department as at April 30, 1980, and the related statement of source and use of special drawing rights for the year then ended.

Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records, after evaluating the extent and results of the tests which we observed to have been carried out by the Internal Auditor, and such other auditing procedures as we deemed necessary in the circumstances.

Audit Opinion

In our opinion, the financial statements referred to above give a true and fair view of the allocations and holdings of special drawing rights of the International Monetary Fund, Special Drawing Rights Department as at April 30, 1980 and the source and use of special drawing rights for the year then ended on a basis consistent with that of the preceding year.

External Audit Committee:

/s/ Robert Toulemon, Chairman (France)

/A/ Pedro Osvaldo MontÓrfano (Paraguay)

/s/ Gamini C.B. Wijeyesinghe (Sri Lanka)

International Monetary Fund

Special Drawing Rights Department (NOTE 1)

Balance Sheet

as at April 30, 1980

Amounts expressed in special drawing rights

19801979
Allocations
Net cumulative allocations of special drawing rights to participants17,380,836,20013,347,560,200
Holdings
Participants
Holdings above allocations, comprising
Allocations6,047,044,0004,085,312,000
Net receipt of SDRs2,777,200,3952,150,197,637
8,824,244,3956,235,509,637
Holdings below allocations, comprising
Allocations11,333,792,2009,262,248,200
Net use of SDRs4,184,197,8123,440,106,613
7,149,594,3885,822,141,587
Total holdings by participants15,973,838,78312,057,651,224
General Resources Account1,406,997,4171,289,908,976
17,380,836,20013,347,560,200
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ W.O. Habermeier/s/ J. de Larosiere
TreasurerManaging Director

International Monetary Fund

Special Drawing Rights Department (Note 1)

Statement of Source and Use of Special Drawing Rights

for the year ended April 30, 1980

Amounts expressed in special drawing rights

GeneralTotal
resources
participantsAccount19801979
Total Holdings at beginning of year12,057,651,2241,289,908,97613,347,560,2009,315,125,544
Source of Special Drawing Rights
Allocations4,033,276,0004,033,276,0004,032,724,800
Transactions with Designation1,371,514,9321,371,514,9321,079,948,611
Transactions by Agreement361,787,753361,787,7531,533,025,735
Net Interest189,688,53181,813,361271,501,892128,172,711
Transfers Between Participants and the General
Resources Account
Purchases1,282,629,9701,282,629,9701,105,921,875
Repurchases993,915,153993,915,153501,870,191
Charges4,101,499556,831,459560,932,958719,605,758
Reimbursement of Special Drawing Rights
Department Expenses (Assessment)1,000,0041,000,0041,700,480
Remuneration139,726,705139,726,705136,279,725
Reconstitution5,054,0915,054,09175,145,184
Interest on Fund Borrowing
Under Oil Facility13,435,42913,435,429 ‘
Under General Arrangements to Borrow6,050,8036,050,8038,954,109
Under Supplementary Financing Facility1,695,7241,695,724
Quota Payments712,575712,57518,715,000
Other
Repayments of Fund Borrowing64,392,37564,392,37537,662,714
Acquisitions to Pay Charges97,51597,5158,379,620
Transfer Charges_____2,914,703
7,473,451,3271,634,272,5529,107,723,8799,391,021,216
Use of Special Drawing Rights
Transactions with Designation1,371,514,9321,371,514,9321,079,948,611
Transactions by Agreement361,787,753361,787,7531,533,025,735
Net Charges271,501,892271,501,892128,172,711
Transfers Between Participants and the General
Resources Account
Purchases1,282,629,9701,282,629,9701,105,921,875
Repurchases993,915,153993,915,153501,870,191
Charges556,831,4594,101,499560,932,958719,605,758
Reimbursement of Special Drawing Rights
Department Expenses (Assessment)1,000,0041,000,0041,700,480
Remuneration139,726,705139,726,705136,279,725
Reconstitution5,054,0915,054,09175,145,184
Interest on Fund Borrowing
Under Oil Facility13,435,42913,435,429
Under General Arrangements to Borrow6,050,8036,050,8038,954,109
Under Supplementary Financing Facility1,695,7241,695,724
Quota Payments712,575712,57518,715,000
Other
Repayments of Fund Borrowing64,392,37564,392,37537,662,714
Acquisitions to Pay Charges97,51597,5158,379,620
Transfer Charges2,914,703
Settlement of Unpaid Charges______290,144
3,557,263,7681,517,184,1115,074,447,8795,358,586,560
Total Holdings at end of year15,973,838,7831,406,997,41717,380,836,20013,347,560,200
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

International Monetary Fund

Special Drawing Rights Department

Notes to the Financial Statements

1. Special Drawing Rights Department

All transactions and operations involving special drawing rights are conducted through the Special Drawing Rights Department. Special drawing rights are allocated by the Fund to members that are participants in the Special Drawing Rights Department in proportion to their quotas in the Fund. Three allocations were made, in 1970, 1971 and 1972, aggregating SDR 9.3 billion. In accordance with Board of Governors Resolution No. 34-3, SDR 4 billion each were allocated to participants as of January 1, 1979 and 1980; a further allocation of SDR 4 billion is to be made as of January 1, 1981. Special drawing rights do not constitute claims by holders against the Fund to provide currency, except in connection with the termination of participation or liquidation.

2. Uses of Special Drawing Rights

A participant can use its special drawing rights in transactions and certain operations by agreement with another participant, and in certain operations involving the General Resources Account, such as the payment of charges and the discharge of repurchase obligations. In addition, the Fund ensures, by designating participants to provide freely, usable currency in exchange for special drawing rights, that a participant can use its special drawing rights to obtain such currency if it has a need because of its balance of payments or its reserve position or developments in its reserves. A participant is not obliged to provide currency for special drawing rights beyond the point at which its holdings of special drawing rights in excess of its net cumulative allocation are equal to twice its net cumulative allocation or such higher limit as may be agreed between a participant and the Fund. A participant may, however, provide currency in excess of the obligatory limit or any agreed higher limit.

3. Reconstitution Requirement

A participant is required to maintain, over five–year periods ending in successive calendar quarters, a minimum level of average daily holdings of special drawing rights of 15 per cent of its average daily net cumulative allocation.

4. Interest, Charges, and Assessment

Interest is paid to each holder on its holdings of special drawing rights and charges are levied at the same rate by the Fund on each participant’s net cumulative allocation plus any negative balance of the participant or unpaid charges. Interest and charges are settled by crediting and debiting individual holdings accounts on April 30 each year. The Fund is required to pay interest to each holder, whether or not sufficient charges are received. The expenses of conducting the business of the Special Drawing Rights Department are paid by the Fund from the General Resources Account which is reimbursed in special drawing rights at the end of each financial year. For this purpose, the Fund levies an assessment, at the same rate for all participants, on their net cumulative allocations.

5. Suspension of Right to Use Special Drawing Rights

On December 19, 1978 the Executive Board decided to suspend the right of Democratic Kampuchea to use special drawing rights acquired after the date of the suspension because the Fund found that Democratic Kampuchea had failed to meet certain obligations in the Special Drawing Rights Department.

Subsidy Account

Report of the External Audit Committee

Washington, D.C. June 27, 1980

authority for the Audit

The audit for the year ended April 30, 1980 was carried out pursuant to Section 20(b) of the By-Laws of the International Monetary Fund.

Scope of the Audit

We have examined the statement of financial position of the Subsidy Account administered by the International Monetary Fund, showing the changes in the Account for the year ended April 30, 1980, and the financial position as at that date.

Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records, after evaluating the extent and results of the tests which we observed to have been carried out by the Internal Auditor, and such other auditing procedures as we deemed necessary in the circumstances.

Audit Opinion

In our opinion, the financial statement referred to above gives a true and fair view of the operations of the Subsidy Account for the year ended April 30, 1980, and its financial position as at that date, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

External Audit Committee:

/s/ Robert Toulemon, Chairman (France)

/s/ Pedro Osvaldo Montórfano (Paraguay)

/s/ Gamini C.B. Wijeyesinghe (Sri Lanka)

International Monetary Fund

Subsidy Account (Note 1)

Statement of Financial Position

Changes during year and Position as at April 30, 1980 Amounts Expressed in Special Drawing Rights(Note 2)
19801979
Balance at beginning of year59,735,39958,746,352
Contributions received (Note 2).28,597,96323,668,092
Interest earned on investments5,621,8593,259,513
34,219,82226,927,605
Valuation loss(921,021)(988,127)
33,298,8025,939,478
93,034,20084,685,830
Less: Subsidy payments (Note 3)19,099,58524,950,431
Balance at end of year73,934,61559,735,399
Balance represented by:
Currency on deposit72,3002,297,338
Investments in United States Government obligations, at cost
(market value SDR 70,936,491—1980, SDR 55,473,545—1979)71,246,20455,829,893
Accrued interest receivable2,616,1111,608,168
Total assets73,934,61559,735,399
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ W.O. Habermeier/s/ J. de Larosiere
TreasurerManaging Director

International Monetary Fund

Subsidy Account

Notes to the Financial Statement

1. Purpose

The Subsidy Account, which is administered by the Fund, was established to assist the most seriously affected members to meet the interest cost of using resources made available through the Fund’s oil facility for 1975. The assets of the Subsidy Account are separate from the assets of all other accounts of the Fund and are not used to discharge liabilities or to meet losses incurred in the administration of other accounts.

2. Accounting Practices

The accounts of the Subsidy Account are expressed in terms of the SDR, the currency value of which is determined by a standard basket of currencies of sixteen members.

Currency contributions to the Subsidy Account are converted to equivalent amounts of SDRs on the basis of exchange rates against the SDR at the time of receipt. Cumulative contributions to the Subsidy Account at April 30, 1980 amounted to SDR 149,536,274.

It is the practice of the Fund to make all calculations on the basis of the exact number of days in the financial year.

3. Subsidy Payments

The rate of subsidy for the financial years ended April 30,1976 through 1980 was set by the Fund at five per cent per annum of the average daily balances in each year of the Fund’s holdings of recipient members’ currencies subject to the schedule of charges applicable to the 1975 oil facility. Subsidy payments are made after the end of each financial year in U.S.dollars at the SDR/US$ rate determined for the date of payment. Subsidy payments for the financial year ended April 30,1980 amounted to SDR 27.8 million and were made on June 2, 1980.

Trust Fund

Report of the External Audit Committee

Washington, D.C. June 27, 1980

Authority for the Audit

The audit for the year ended April 30, 1980 was carried out pursuant to Section 20(b) of the By-Laws of the International Monetary Fund.

Scope of the Audit

We have examined the balance sheet of the Trust Fund administered by the International Monetary Fund as at April 30, 1980, and the related statements of income and expense and trust resources for the year then ended.

Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records, after evaluating the extent and results of the tests which we observed to have been carried out by the Internal Auditor, and such other auditing procedures as we deemed necessary in the circumstances.

Audit Opinion

In our opinion, the financial statements referred to above give a true and fair view of the financial position of the Trust Fund as at April 30, 1980, and of the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

External Audit Committee:

/s/ Robert Toulemon, Chairman (France)

/A/ Pedro Osvaldo MontÓrfano (Paraguay)

/s/ Gamini C.B. Wijeyesinghe (Sri Lanka)

International Monetary Fund

Trust Fund (Note 1)

Balance Sheet

as at April 30, 1980

Amounts expressed in special drawing rights

19801979
Assets
Sight deposits23,70240,561
Term deposits824,286,202534,534,618
Investments, at cost (market value SDR 348,419,267—1980, SDR 235,576,501—1979)347,840,818232,464,576
Loans (Note 3)1,931,442,424969,864,424
Accrued interest on investments and term deposits36,600,93721,449,855
Accrued interest on Loans2,600,6691,536,003
Total3,142,794,7521,759,890,037
Trust Resources and Liabilities
Trust resources (Note 4)3,124,497,4101,751,394,949
Liabilities
Undistributed profits from sale of gold18,297,3428,495,088
Total3,142,794,7521,759,890,037
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ W.O. Habermeier/s/ J. de Larosiere
TreasurerManaging Director

International Monetary Fund

Trust Fund(Note 1)

Statement of Income and Expense

for the year ended April 30, 1980

Amounts expressed in special drawing rights

Trust Fund (Note 2)

19801979
Income:
Net proceeds realized from the sale of gold1,552,631,381928,701,768
Investment income95,809,50943,458,376
Interest income on loans6,467,8553,704,818
1,654,908,745975,864,962
Expense:
Administrative expense (Note 2):
Staff salaries and benefits, and other services635,131834,746
Gold weighing and handling charges58,73058,570
Data processing services5,9725,682
Other1671,002
Total’administrative expense700,000900,000
Exchange valuation loss6,281,59320,634,242
6,981,59321,534,242
Net income1,647,927,152954,330,720
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

International Monetary Fund

Trust Fund (Note 1)

Statement of Trust Resources

for the year ended April 30, 1980

Amounts expressed in special drawing rights

(Note 2)

19801979
Balance at beginning of year1,751,394,949864,216,576
Net income for year1,647,927,152954,330,720
Total resources before distribution of profits to developing countries3,399,322,1011,818,547,296
Distribution of profits to developing countries (Note 4)
Amount disbursed292,681,71962,057,738
Amount pending disbursement9,802,2548,495,088
302,483,97370,552,826
Contributions received27,659,2823,400,479
Balance at end of year3,124,497,4101,751,394,949
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

Trust Fund

Notes to the FinancialStatements

1. Purpose

The Trust, which is administered by the Fund as Trustee, was established in 1976 to provide balance of payments assistance on concessional terms to eligible members that qualify for assistance. The resources of the Trust are separate from the assets of all other accounts of the Fund and are not used to discharge liabilities or to meet losses incurred in the administration of other accounts.

2. Accounting Practices

Unit of Account

The accounts of the Trust Fund are expressed in terms of the special drawing right (SDR), the currency value of which is determined by a standard basket of currencies of sixteen members.

Calculations

It is the practice of the Fund to make all calculations on the basis of the exact number of days in the accounting year.

Administrative Expense

The expenses of conducting the business of the Trust Fund that are paid from the General Resources Account of the IMF are reimbursed by the Trust on the basis of a reasonable estimate of these expenses by the IMF.

3. Loans

Loans are made from the Trust Fund to those eligible members that qualify for assistance in accordance with the provisions of the Trust Instrument. Each loan disbursement is repayable in ten semiannual installments which shall begin not later than the end of the first six months of the sixth year, and be completed at the end of the tenth year, after the date of disbursement. Interest on the outstanding loan balances is charged at the rate of one-half of one per cent per annum.

4. Trust Resources

The International Monetary Fund decided that the Trustee make, through the Trust Fund, the direct distribution of part of the profits from the sale of gold for the benefit of developing members. The share of each developing member in this direct distribution of profits is calculated on the basis of its share in total IMF quotas as of August 31, 1975 and on the basis of the actual profits realized in the gold auctions. At April 30,1980 the Trust resources include the equivalent of SDR 365.7 million for direct distribution of profits to certain developing members, subject to decisions by the Fund as Trustee.

Staff Retirement Fund

Report of the External Audit Committee

Washington, D.C. June 27, 1980

Authority for the Audit

The audit for the year ended April 30, 1980 was carried out pursuant to Section 20(b) of the By-Laws of the International Monetary Fund.

Scope of the Audit

We have examined the balance sheet of the Staff Retirement Fund administered by the International Monetary Fund as at April 30, 1980, and the related statement of changes in reserves for the year then ended.

Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records, after evaluating the extent and results of the tests which we observed to have been carried out by the Internal Auditor, and such other auditing procedures as we deemed necessary in the circumstances.

Audit Opinion

In our opinion, the financial statements referred to above give a true and fair view of the financial position of the Staff Retirement Fund as at April 30, 1980, and of the changes in reserves for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

External Audit Committee:

/s/ Robert Toulemon, Chairman (France)

/A/ Pedro Osvaldo MontÓrfano (Paraguay)

/s/ Gamini C.B. Wijeyesinghe (Sri Lanka)

Staff RetirementFund (Note 1)

Balance Sheet

as at April 30, 1980

Amounts expressed in U.S.dollars

19801979

(Note 2)
Assets
Cash at banks177,99463,628
Investments (Note 3)
Bonds (market value $72,520,971—1980, $53,674,073—1979)80,406,01558,120,307
Stocks (market value $81,563,954—1980, $74,703,015—1979)76,127,30274,916,076
Total156.533,317133,036,383
Accrued interest on bonds, accrued contributions receivable, and miscellaneous accounts receivable1,131,363759,280
Total Assets157,842,674133,859,291
Reserves and Liabilities
Reserves
Participants’ Account29,402,77825,616,368
Accumulation Account69,329,12861,799,018
Retirement Reserve Account59,107,04546,441,420
Total Reserves157,838,951133,856,806
Accounts Payable3,7232,485
Total Reserves and Liabilities157,842,674133,859,291
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ W.O. Habermeier/s/ J. de Larosiere
TreasurerManaging Director

Staff Retirement Fund (NOTE 1)

Statement of Changes in Reserves

for the year ended April 30, 1980

Amounts expressed in U.S. dollars

19801979

(Note 2)
Contributions:
Participants4,681,0223,950,821
International Monetary fund15,264,16213,406,295
Participants restored to service15,850105,698
Transfers (net) from retirement plans of other international organizations15,684(113,125)
Total Contributions19,976,71817,349,689
Investment Income:
Interest and dividends10,496,2797,197,272
rUiiurazacLon of accumulated discounts40,41938,738
Amortization of net realized losses on bonds(242,057)(239,721)
Recognized market depreciation on equity investments(662,000)(1,483,100)
Net Investment Income9,632,6415,513,189
Payments:
Pensions and other benefits4,781,5943,801,233
Contributions, benefits, and interest paid to participants upon withdrawal687,218606,617
Commuted benefits158,402
Death benefits______223,813
Total Payments5,627,2144,631,663
Increase in Reserves during year23,982,14518,231,215
Reserves at beginning of year133,856,806115,625,591
Reserves at end of year157,838,951133,856,806
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

Staff Retirement Fund

Notes to the Financial Statements

1. Purpose

In accordance with the provisions of the Staff Retirement Plan, all assets and income of the Staff Retirement Fund are the property of the International Monetary Fund and are held and administered by it separately from all its other property and assets and are to be used solely for the benefit of participants and retired participants or their beneficiaries. The International Monetary Fund, as employer, meets the administrative costs of the Plan, such as actuarial, management, and custodial fees, and is to contribute any additional amounts not provided by the contributions of participants required to pay costs and expenses of the Plan not otherwise covered.

2. Prior Period Adjustment

The financial statements of the Staff Retirement Fund for the year ended April 30, 1979 included an amount of recognized appreciation on stocks of $229,700. This amount was incorrect because of an error in computations and a recognized depreciation of $1,483,100 should have been recorded. The comparative financial statements for the year ended April 30, 1979 have been restated, with the effect that the adjusted book value of stocks and the increase in reserves through the Accumulation Account are $1,712,800 less than originally reported.

In consequence, the payment by the International Monetary Fund to the Staff Retirement Fund on May 1, 1980 to amortize accumulated experience losses was $176,355 less than it otherwise would have been. This amount, plus interest at the assumed actuarial rate of 6 per cent per annum, was paid on June 3, 1980.

3. Investments

Valuation

All investments are recorded in the accounts at cost or amortized cost. The basis of valuation of the investment portfolio is intended to focus on the prospective long-run average yield of the existing portfolio. Therefore, not only interest and dividends, but also realized gains and losses on bonds and the effect of unrealized changes in the value of equity investments, are taken into account. The realized net loss (or gain) on bonds is amortized through the Accumulation Account over a ten-year period; unrealized market appreciation or depreciation on bonds is ignored. The amount of appreciation (or depreciation) on stocks to be recognized through the Accumulation Account each year is based on a ten-year moving average of the annual rate of changes in the market value of the equity portfolio. “Funds originally invested,” as referred to below, is the cumulative amount of contributions from the employer and from the participants made available for investment plus investment income. The investment base for determining the yield on investments is the “adjusted book value” in the balance sheet.

Investment Portfolio

The investments at April 30, 1980 and 1979 were as follows (in U.S. dollars):

19801979
(Note 2)
Bonds
Amortized cost:
Notes insured by
U.S. Government8,787,4792,495,457
International development
banks5,083,9835,063,185
Corporate21,606,08213,943,731
Commercial paper14,429,3965,745,000
Certificates of deposit29,140,00028,700,000
Repurchase agreement773,0001,368,000
Total amortized cost79,819,94057,315,373
Add: Net realized losses2,420,5292,397,330
Funds originally invested82,240,46959,712,703
Deduct: Amortized net
realized losses1,834,4541,592,396
Adjusted book
value of bonds80,406,01558,120,307
Stocks
Cost:
Common84,495,54577,477,922
Deduct: Net realized gains5,759,143614,746
Funds originally invested78,736,40276,863,176
Recognized depreciation(2,609,100)(1,947,100)
Adjusted book
value of stocks76,127,30274,916,076
Total investments at adjusted book value156,533,317133,036,383

Funds originally invested and market value

The changes in funds originally invested are summarized as follows:

BondsStocksTotal
Funds originally invested:
April 30, 197959,712,70376,863,176136,575,879
Net new investment22,527,7661,873,22624,400,992
April 30, 198082,240,46978,736,402160,976,871
Market value of port folio
April 30, 198072,520,97181,563,954154,084,925

4. Actuarial Valuation

The most recent valuation of the Plan by the actuary engaged by the Pension Committee was made as at April 30, 1979. Actuarial assumptions used in the valuation were (a) life expectancy of participants as based on the 1960 United Nations Service Tables, (b) certain percentages of staff, differing by sex, would retire at each age between 55 and 65, and (c) an assumed average rate of return on investments of six per cent per annum.

The actuarial assumptions were based on the presumption that the Plan will continue.

The valuation made at April 30, 1979 showed an experience loss for the year then ended of $18.1 million. Experience losses are amortized by contributions from the employer over fifteen year periods. At April 30, 1980 the unamortized experience losses amounted to $51.3 million (SDR 39.6 million).

Index

An asterisk (*) denotes a table; a dagger (t) denotes a chart; fn. denotes a footnote.

Abu Dhabi

  • Oil facility financing, 117*

  • Supplementary financing facility, lending for, 82, 117*

Afghanistan

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 125*

Africa

  • Balance of payments, 17*, 31

  • Economic activity and policies, 15

  • Output, 12*, 15

  • Prices, 12*

  • Trust Fund disbursements, 88*

Algeria

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 125*

Argentina

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • International reserves, 59

  • Output, 15

  • Prices, 12* (fn.)

  • SDRs, 66, 94*, 123*, 125*

Articles of Agreement

  • Article IV, 40, 52, 53, 57, 73, 96, 97

  • Article V, 80, 81

  • Article VIII, members accepting obligations of, 97, 122*

  • Article XIV, 96, 97

  • Second Amendment, 52, 53, 73, 77* (fn.), 85, 90, 91

Asia

  • Balance of payments, 17*, 31, 33

  • Debt and debt service, 33

  • Economic activity and policies, 15

  • Output, 12*, 14, 15

  • Prices, 12*

  • SDRs, 66

  • Trust Fund disbursements, 88*

Australia

  • Balance of payments, 24

  • Buffer stock facility, use of, 78

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Purchases and repurchases from Fund, 95, 112*, 114*

  • SDRs, 94*, 95, 123*, 125*

Austria

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Oil facility financing, 117*

  • SDRs, 94*, 123*, 125*

  • Subsidy Account, contribution to, 90*

  • Supplementary financing facility, lending for, 82, 117*

Bahamas

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 123*, 125*

Bahrain

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 123*, 125*

Balance of Payments

  • Adjustment, 3, 4, 24, 35, 38, 40, 50, 51, 57, 70, 71, 75, 78, 85

  • Current account balances, distribution of, 1, 3, 4, 17, 18, 20*, 21, 23, 25, 27, 28,29, 30-31, 32, 36

  • Domestic economic policies, effect on, 49

  • Effect of: exchange rate changes on, 22, 50, 52, 57; oil price changes on, 4

  • Financing, 1, 3, 4, 18, 30, 32, 33, 38, 40, 51,52, 58,70, 75

  • Global pattern, 18, 20*, 61, 81

  • Petrodollar recycling, role of Fund in, 18

  • See also individual countries

Bangladesh

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 125*

  • Stand-by arrangement with Fund, 110*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Bank for International Settlements(BIS)

  • Holder of SDRs, 91, 95

  • Trust Fund investments, 89

Barbados

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 125*

Belgium

  • European Monetary System, participation in, 41 (fn.), 109* (fn.)

  • Exchange rate, 47, 106*

  • General Arrangements to Borrow, 116*

  • Gold purchased from Fund, 87*

  • Oil facility financing, 117*

  • SDRs, 93, 123*, 125*

  • Subsidy Account, contribution to, 90*

  • Supplementary financing facility, lending for, 82, 117*

Benin

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases from Fund, 112*

  • SDRs, 94*, 123*, 125*

  • Trust Fund disbursements, 121*

Board of Governors

  • SDR allocation, decision on, 75, 91

  • See also Development Committeeand Interim Committee

Bolivia

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases from Fund, 112*

  • SDRs, 94*, 123*, 125*

  • Stand-by arrangement with Fund, 79*, 110*

  • Supplementary financing facility, use of, 79*

  • Trust Fund disbursements, 121*

Botswana

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 123*, 125*

Brazil

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Output, 15

  • SDRs, 66, 94*, 123*, 125*

  • Subsidy Account, contribution to, 90*

Budget of Fund, 174*

Buffer Stock Financing by Fund, 76, 77*, 78, 112*-13*

Burma

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 93*, 94*, 123*, 125*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

Burundi

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases from Fund, 112*

  • SDRs, 123*, 125*

  • Trust Fund disbursements, 121*

Cameroon

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 93*, 123*, 125*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Canada

  • Balance of payments, 22*, 23

  • Economic activity and policies, 2, 8, 9, 43, 46†

  • Exchange rate, 24, 25, 41, 42†, 43, 44†, 47, 48*, 106*

  • General Arrangements to Borrow, 116*

  • Gold purchased from Fund, 87*

  • International reserves, 45*

  • Manufactures, relative costs and prices, 26†

  • Manufacturing, labor costs in, 26†

  • Oil facility financing, 117*

  • Output, 2†, 8, 9

  • Prices, 5, 8*, 9, 26†

  • SDRs, 93, 94*, 123*, 125*

  • Subsidy Account, contribution to, 90*

  • Supplementary financing facility, lending for, 82, 117*

  • Trade, 23, 25

Cape Verde

  • Exchange rate, 106*

  • Quota increase, 83

  • SDRs, 95, 123*, 125*

  • Subscription payment to Fund, 95

Capital Markets

  • Borrowing in, 27, 31, 38, 70

  • Rates of return on money market instruments, 65

  • Recycling of petrodollars, role in, 38, 69-70

Central African Republic

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*,114*

  • SDRs, 94*, 123*, 125*

  • Stand-by arrangement with Fund, 110*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Chad

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 125*

  • Trust Fund disbursements, 121*

Chile

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Prices, 12* (fn.)

  • Repurchases from Fund, 114*

  • SDRs, 94*, 123*, 125*

China

  • Exchange arrangements, 109* (fn.)

  • Executive Board decision on representation, 83

  • Gold purchased from Fund, 87*

  • Membership in Fund, 115* (fn.)

  • Repurchases from Fund, 114*

  • SDRs, 123*, 125*

Colombia

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 125*

Comoros

  • Exchange rate, 106*

  • SDRs, 123*, 125*

Compensatory Financing by Fund, 31, 112*—13*; liberalization, 73, 74, 76, 78; purchases by members, 76†, 77*, 78, 81; repurchases by members, 76†, 80; revised decision, 136-38

conditionality of Fund Resources, 73

Congo

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 125*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

Consultations with Fund Members, 53, 57, 96

Costa Rica

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 125*

  • Stand-by arrangement with Fund, 77, 79*, 110*

  • Supplementary financing facility, use of, 79*

Cyprus

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 125*

Denmark

  • Economic activity and policies, 41

  • European Monetary System, participation in, 41 (fn.), 109* (fn.)

  • Exchange rate, 41, 47, 106*

  • Gold purchased from Fund, 87*

  • SDRs, 94*, 123*, 125*

  • Subsidy Account, contribution to, 90*

Developing Countries

  • Economic activity and policies, 12-15, 35,36, 37,38

  • Energy problems, economic impact of, 36, 37

  • Exchange arrangements, 54*-56*

  • Exchange rates, 47, 48*

  • Incomes policies, use of, 37

  • Output, 12, 36, 37

  • Prices, 12, 36, 37

  • Purchases from Fund, 76

  • Stand-by arrangements with Fund, 76

  • See also individual countries

  • Non-Oil Developing Countries

    • Balance of payments, 1, 3, 4, 17, 20*, 28, 29, 30, 31, 32, 38, 51, 70-71

    • Borrowing from private banks, 3, 18, 19, 31, 33, 70

    • Capital flows, 17-18

    • Debt and debt service, 3, 32, 33, 34

    • Economic activity and policies, 3, 4, 13, 14, 15, 29, 30, 31, 32, 38, 51, 70

    • Effect of: economic slowdown in industrial countries on, 14; oil price increases on, 14, 15

    • Energy production and consumption, 4, 38

    • Exchange rates, 51

    • Foreign exchange reserves, 59*

    • Gold holdings, 59*

    • International reserves, 29, 30, 31, 59-60

    • Official financing, use of, 3, 15, 18, 30, 33, 71

    • Output, 12*, 13, 14

    • Prices, 4, 12*, 13, 14, 15

  • Reserve positions in Fund, 59*, 68

  • SDRs, 59*, 66

  • Subgroups, 28-34

  • Supplementary financing facility, use of, 79-80

  • Trade, 3, 14, 15, 16*, 17*, 28, 29, 30,31, 34,51, 70

Oil Exporting Countries

  • Balance of payments, 1, 3, 13, 17, 18, 19, 20*, 21, 24, 25, 27, 50, 51, 52, 57, 60, 70

  • Capital flows, 3, 18, 31, 38

  • Debt and debt service, 13

  • Deposits in private banks, 3, 18, 21, 28

  • Economic activity and policies, 13, 25,27, 51,52

  • Eurocurrency deposits, 69

  • Exchange rates, 51, 52

  • Foreign exchange reserves, 13, 59*

  • Gold holdings, 59*

  • International investments of, 3, 21, 28

  • International reserves, 59-60, 69

  • Oil pricing, 1, 3, 4, 13, 27, 29, 36, 69

  • Oil revenues, 4, 13, 25, 27, 51, 60, 70

  • Output, 12*, 13

  • Prices, 12*, 13

  • Reserve positions in Fund, 59*, 68

  • SDRs, 59*, 66

  • Trade, 4, 13, 16, 17*, 25, 27, 50, 51, 52

  • See also Organization of Petroleum Exporting Countries (OPEC)

Development Committee

  • Communiqués, 158-67

  • Program of Immediate Action of Group of Twenty-Four, examination of, 74

Djibouti

  • Exchange rate, 106*

  • SDRs, 95, 123*, 125*

  • Subscription payment to Fund, 95

Dominica

  • Article VIII obligations, acceptance of, 97

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Purchases from Fund, 76, 112*

  • Quota increase, 83

  • SDRs, 94*, 95, 123*, 125*

  • Subscription payment to Fund, 95

Dominican Republic

  • Compensatory financing facility, use of, 80

  • Exchange rate, 106*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 80, 112*, 114*

  • SDRs, 94*, 123*, 125*

Ecuador

  • Exchange rate, 106

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 125*

Egypt

  • Exchange rate, 106*

  • Extended arrangement with Fund, 77, 116*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 93*, 123*, 125*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

El Salvador

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases from Fund, 112*

  • SDRs, 93*, 94*, 123*, 125*

  • Trust Fund disbursements, 121*

Equatorial Guinea

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 125*

  • Trust Fund disbursements, 121*

Ethiopia

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases from Fund, 112*

  • SDRs, 94*, 123*, 125*

  • Trust Fund disbursements, 121*

Euromarkets

  • Borrowings, 69; U.S. reserve requirements on, 41, 43

  • Eurocurrency deposits, 65 (fn.), 68-69, 70

  • Group of Ten agreement of 1971, 69

  • Recycling petrodollars, role in, 69, 70

Europe

  • Balance of payments, 17*, 31

  • Economic activity and policies, 6, 15, 16

  • Indexation, 6

  • Output, 8*, 12*, 15

  • Prices, 8*, 12*

  • SDRs, 66

  • Trade, 16

  • Trust Fund disbursements, 88*

  • Wages, 6

European Currency Unit(ECU), 45, 47, 58, 60, 61, 63, 68*, 69

European Monetary System(EMS)

  • Establishment, 25, 41, 45, 53

  • European Monetary Cooperation Fund, 58, 59* (fn.), 60, 61

  • Exchange rates, 25, 41, 45

  • Gold holdings of participants, 59* (fn.)

  • Intervention policy, 47

  • Participants, 41 (fn.), 109* (fn.)

  • Participants’ deposits of gold and dollars, 58

  • Policy coordination within, 45

Exchange Markets

  • Behavior of, 40

  • Conditions in, 24, 41, 47

  • Forward markets, 48, 69

  • Official intervention in, 36, 40, 41, 43, 45, 47, 48, 49, 52, 53, 56, 63, 64, 69

  • Restrictions, 49, 51, 53, 56, 57

Exchange Rates

  • Arrangements, 35, 49, 52, 53, 106*-109*; of member countries, 54*-56*

  • Balance of payments, effect on, 50, 52

  • Currency blocs, formation of, 56

  • Effect of: balance of payments on, 35, 36; capital movements on, 53; exchange and trade restrictions on, 53; inflation rate on, 49

  • Effective rates, 22, 24, 25, 41, 42†, 47, 48*, 50, 53

  • European common margins agreement (“snake”), 41, 45, 47

  • European Monetary System, 41, 45, 47, 53, 106*-109*

  • Inflationary expectations, effect on, 49

  • Investment, effect on, 48-49

  • List as of June 30, 1980, 106*-109*

  • Monthly changes in, January 1978-May 1980, 44†

  • Multilateral exchange rate model (MERM), 42† (fn.)

  • Policies, 35, 40, 41

  • Prices, effect on, 49, 51

  • Trade, effect on, 48-49

  • Variability, 35, 40, 41, 45, 47, 48, 56, 57

  • Wages, effect on, 49

  • See also individual countries

Exchange Restrictions, 49, 51, 53, 56, 57

Executive Board

  • Article IV consultations, role in, 53, 96

  • Broadened investment authority for Trust Fund, decision on, 89

  • Changes in membership, 171-73

  • China, decision on representation of, 83

  • Compensatory financing facility, amended decision on, 78

  • Conditionality guidelines, review of, 73

  • Early repurchase, guidelines for, 80

  • Economic policy, discussions with national authorities about, 56

  • Extended Fund facility, review of, 78

  • Fund surveillance of exchange rates, discussion of, 52, 56, 57, 58

  • Further uses of Fund gold holdings, consideration of, 85

  • Guidelines for allocating currencies to be sold, 81

  • List of Executive Directors and voting power, 168-70

  • “Other holders” of SDRs, decision on permitted uses, 95-96

  • SDRs, decisions on additional uses for, 92

  • SDR valuation and interest rate baskets, examination of, 75, 91

  • Subsidy Account, decision establishing, 89

  • Subsidy Account surplus, decision on disposition of, 90

  • Substitution Account, work on proposal for, 72, 75

  • Supplementary financing facility, review of, 80

  • Trust Fund, discussion of, 75; establishment of, 85

  • Trust Fund assets, decision to place them with BIS, 89

  • Trust Fund decisions in 1979/80, 88

  • World economic situation and outlook, discussion of, 53, 58, 73, 97

Executive Board Decisions

  • Compensatory financing facility, revised decision, 136—38

  • Extended Fund facility, extension of maximum repurchase period, 145

  • General Arrangements to Borrow, renewal and modification, 139-40

  • Repurchases, procedures for sale of currencies at the request of members, 145-48

  • Special drawing rights: additional uses, 141-43; allocation to new participants, 143; designation, review of rules and method of calculating amounts, 132-34; “other holders,” 143-45

  • Stand-by and extended arrangements, format, 148-51

  • Stand-by arrangements, guidelines on performance criteria with respect to foreign borrowing, 138-39

  • Subscriptions of Fund members, guidelines on payment of reserve assets, 140-41

  • Supplementary financing facility, 131-32

  • Trust Fund, second period, 132

  • Use of currencies and SDRs in General Resources Account and principles and procedures for designation, 134-36

Extended Fund Facility, 71, 73, 74, 76, 81, 112*-13*, 116*; extended arrangement, format, 150-51; purchases by members, 761, 77-78; repurchases by members, 761, 78, 80, 145; supplementary financing facility, use of, 77, 78, 79*

Fiji

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 93*, 123*, 125*

Financial Markets

  • See Capital Marketsand Exchange Markets

Financial Programs Agreed with Fund, 3, 70

Financial Statements of Fund, 176-200

Finland

  • Article VIII obligations, acceptance of, 97

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Repurchases from Fund, 114*

  • SDRs, 94*, 123*, 125*

  • Subsidy Account, contribution to, 90*

Foreign Exchange MarketsSee Exchange Markets

Foreign Exchange Reserves

  • See International Reserves

Foreign Investment

  • See International Investment

Foreign Trade

  • See International Trade

France

  • Balance of payments, 22*, 23

  • Economic activity and policies, 2†, 9, 43, 45, 46†, 67†, 84†

  • European Monetary System, participation in, 41 (fn.), 109* (fn.)

  • Exchange rate, 24, 25, 41, 42†, 43, 44†, 47, 48*, 106*

  • General Arrangements to Borrow, 116*

  • Gold purchased from Fund, 87*

  • International reserves, 45*

  • Manufactures, relative costs and prices, 26†

  • Manufacturing, labor costs in, 26†

  • Output, 2†, 8*, 9†

  • Prices, 5, 8*, 26†

  • Rates of return on domestic money market instruments, 65

  • SDRs, 93, 94*, 123*, 125*

  • Subsidy Account, contribution to, 90*

  • Trade, 23, 25

Gabon

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases from Fund, 112*

  • SDRs, 94*, 123*, 125*

  • Stand-by arrangements with Fund, 110*

Gambia, The

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 125*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

General Arrangements to Borrow (GAB), 75, 116*, 139-40; borrowing by Fund, 77*, 82; renewal, 82; repayment by Fund, 95

General Resources Account Transactions

  • Borrowing by Fund, 92*, 97*, 116*

  • Charges, 73, 83, 96, 97*, 118*; payment in SDRs, 92*, 93, 95

  • Currencies, use of, 81, 134-36, 145-48

  • Holdings of: gold, 77*; SDRs, 77*, 81, 92*, 93-95, 96, 124*; usable currencies, 77*, 81, 85

  • Net drawings by members, 74*

  • Purchases by members, 73, 76, 77*, 92*, 95, 111*, 112*-13*

  • Receipt of SDRs, 124*, 125*-28*

  • Reimbursement for Trust Fund expenses, 88

  • Remuneration paid to members, 83, 84†, 92*, 96, 97*; in SDRs, 93, 95

  • Repurchases by members, 76, 77*, 80, 111*, 114*-15*, 145-48; in SDRs, 92, 93,94, 95

  • SDRs: inclusion in operational budget, 94; use of, 92*, 124*, 125*-28*, 134-36, 140-41

Germany, Federal Republic of

  • Balance of payments, 3, 21, 22*, 23, 24, 41, 50

  • Economic activity, 2†, 8, 9, 10, 22, 41, 43, 45, 46t, 47, 67†, 84†

  • European Monetary System, participation in, 41 (fn.), 109* (fn.)

  • Exchange rate, 24, 25, 41, 42†, 43, 44†, 47, 48*, 50, 63, 106*, 109*

  • General Arrangements to Borrow, 116*; Jending under, 82

  • Gold purchased from Fund, 87*

  • International reserves, 45*

  • Manufactures, relative costs and prices, 26†

  • Manufacturing, labor costs in, 26†

  • Oil facility financing, 117*

  • Output, 2†, 8, 9

  • Prices, 5, 8*, 26†

  • Rates of return on domestic money market instruments, 65, 66

  • SDRs, 66, 93, 94*, 95, 123*, 125*

  • Subsidy Account, contribution to, 90*

  • Supplementary financing facility, lending for, 82, 117*

  • Trade, 23, 25

Ghana

  • Exchange rate, 106*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Prices, 12* (fn.)

  • Repurchases from Fund, 114*

  • SDRs, 123*, 126*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

Gold

  • Collateral, use as, 71

  • ECUs issued against, 58, 60, 61

  • Holdings, 58, 59*, 60, 66, 81, 85

  • Price, 48, 58, 60, 85

  • Sales by Fund: distribution of profits, 73, 74*, 75, 85, 86, 88, 119*; for distribution, 66, 73, 74*, 75, 76, 77*, 85, 87*; in auctions, 66, 73, 75, 77*, 85, 88*

Greece

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Repurchases from Fund, 114*

  • SDRs, 93*, 123*, 126*

  • Subsidy Account, contribution to, 90*

Grenada

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 93*, 94*, 123*, 126*

  • Stand-by arrangement with Fund, 110*

  • Subsidy Account, use of, 89*, 90

  • Trust Fund disbursements, 121*

Group of Ten, 69

Group of Twenty-Four, 73

Guatemala

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 126*

  • Supplementary financing facility, lending for, 82, 117*

Guinea

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 126*

  • Trust Fund disbursements, 121*

Guinea-Bissau

  • Exchange rate, 107*

  • SDRs, 123*, 126*

Guyana

  • Buffer stock facility, use of, 78

  • Exchange rate, 107*

  • Extended arrangement with Fund, 77, 79*,116*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 93*, 94*, 123*, 126*

  • Stand-by arrangement with Fund, 110*

  • Supplementary financing facility, use of, 79*

Haiti

  • Exchange rate, 107*

  • Extended arrangement with Fund, 77, 116*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 126*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Honduras

  • Exchange rate, 107*

  • Extended arrangement with Fund, 77, 116*

  • Gold purchased from Fund, 87*, 119*

  • Purchases from Fund, 112*

  • SDRs, 94*, 123*, 126*

  • Trust Fund disbursements, 121*

Iceland

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Repurchases from Fund, 114*

  • SDRs, 93*, 123*, 126*

Income and Expenses of Fund, 96, 175*

India

  • Balance of payments, 30

  • Economic activity and policies, 14, 15

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Output, 14, 15

  • Repurchases from Fund, 95, 114*

  • SDRs, 93, 94*, 95, 123*, 126*

  • Subsidy Account, use of, 89*, 90

  • Trade, 30

Indonesia

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 126*

Industrial Countries

  • Balance of payments, 1, 3, 4, 17, 18, 19, 20*, 21, 22*, 23, 24, 38, 50

  • Capital flows, 18-19

  • Economic activity and policies, 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 16, 21, 25, 28, 29, 34, 35-36, 37, 38, 41, 43, 45, 46†, 48, 49, 50, 53, 57, 70

  • Effect of oil price increases on domestic expenditure, 7

  • Energy prices, 36, 38

  • Energy problems, economic impact of, 37

  • Energy production and consumption, 4, 36, 38

  • Exchange arrangements, 54*

  • Exchange rates, 21, 25, 41, 42†, 43, 44†, 47, 48*, 49, 50, 64

  • Foreign exchange reserves, 59*

  • Gasoline taxation, rate of, 36†

  • Gold holdings, 59*

  • Incomes policies, use of, 37

  • Indexation, 10

  • Interest rates, 46†, 84†

  • International reserves, 45*, 59, 60, 61

  • Manufactures, relative costs and prices, 26†

  • Manufacturing, labor costs in, 5, 6, 7†, 26†

  • Monetary growth, 46f Output, 1, 2, 3, 7, 8, 9, 10, 11, 34, 35, 36, 37

  • Petrodollar recycling, role in, 3, 18, 21

  • Prices, 1, 4, 5, 6†, 7, 8*, 10, 11, 25, 26†, 34, 35, 36, 37, 49

  • Private banks, 18-19

  • Repurchases from Fund, 80

  • Reserve positions in Fund, 59*, 68

  • SDRs, 59*, 66

  • Trade, 1, 16, 17*, 23, 28, 29, 51

  • Wages, 5, 6

  • See also individual countries

Interim Committee, 21, 38, 71, 81

  • Communiqués, 10, 72, 152-57

  • Economic policy, discussions with authorities about, 56

  • Fund gold sales program, agreement on, 75

  • Gold distribution agreement, 85

  • Gold sales program, agreement on, 84

  • Simplification of SDR valuation, agreement on, 91

  • SDR valuation and interest rate baskets, examination of, 75

  • Substitution Account, work on proposal for, 75

  • World economic situation and outlook, discussion of, 53

International Adjustment Process, 36, 38, 50, 53, 56; speed of, 40

International Banks

  • Global sources and uses of funds, 1976-79, 19*

International Coordination of Domestic Economic Policies, 57

International Investment

  • Direct investment, 31

  • Effect of exchange rate variability on, 48-49

  • Energy production, 4

  • Non-oil developing countries, investment in, 31

  • Oil exporting countries, investments of, 21

International Organizations

  • Fund relations with, 99-100

International Reserves

  • Adequacy, 71

  • Borrowed from capital markets, 70

  • Changes in countries’ holdings of, 43, 44†, 45

  • Composition of, 40, 43, 58, 60-61, 63, 64, 66, 68-69, 72

  • Composition of reserve change, 68*

  • Distribution, 29, 30, 31, 58-59

  • ECU holdings, 60

  • Foreign exchange holdings, 59*, 61, 62*, 63, 64*, 66, 68-69, 70, 72, 81

  • Global stock, 58

  • Gold holdings, 58, 59*, 60, 71, 81

  • Growth, 58, 60-61, 63

  • Official holdings, 19, 43, 44†, 59*, 60, 61, 62*, 63, 64*, 68*

  • Reserve positions in Fund, 59*, 61, 66, 68, 70, 81

  • SDRs, 59*, 61, 66

  • See also individual countries

International Sugar Agreement(1977), 78, 80

International Trade

  • Developing countries, trade among, 51

  • Effect of: exchange rate variability on, 48-49; oil price increases on, 1; reduced lending by private banks to non-oil developing countries on, 3

  • Growth, 1

  • Import substitution, 51

  • Manufactured goods, 16, 22, 51, 71

  • Oil, 5, 16, 27, 50, 51

  • Prices, 17*

  • Primary commodities, 5, 16, 31, 71

  • Protectionism, 28, 29, 36, 51, 78

  • Restrictions, 27, 51, 53, 56, 57

  • Summary, 1962-79, 16*

  • Terms of trade, 15, 22, 23, 25, 27, 28-29, 52; developments 1962-79, 17*

  • Value, 15-16 Volume, 16, 61

  • See also individual countries

Iran

  • Economic activity, 13, 27

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 88 (fn.); 119*

  • Oil facility financing, 117*

  • SDRs, 123*, 126*

  • Subsidy Account, contribution to, 90*

Iraq

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 126*

  • Trust Fund, contribution to, 88

Ireland

  • European Monetary System, participation in, 41 (fn.), 109* (fn.)

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • SDRs, 94*, 123*, 126*

Israel

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Prices, 12* (fn.)

  • Purchases and repurchases from Fund, 95, 112*, 114*

  • SDRs, 93*, 94*, 95, 123*, 126*

Italy

  • Balance of payments, 3, 21, 22*, 23

  • Economic activity, 2†, 8, 9, 46†

  • European Monetary System, participation in, 41 (fn.), 109* (fn.)

  • Exchange rate, 24, 25, 41, 42†, 44†, 47, 48*, 107*

  • General Arrangements to Borrow, 116*

  • Gold purchased from Fund, 87*

  • International reserves, 45*

  • Manufactures, relative costs and prices, 26†

  • Manufacturing, labor costs in, 26†

  • Output, 2†, 8, 9

  • Prices, 5, 8*, 26†

  • Purchases and repurchases from Fund, 80, 82,114*

  • SDRs, 93, 94*, 95, 123*, 126*

  • Stand-by arrangement with Fund, 81

  • Subsidy Account, contribution to, 90*

  • Trade, 23, 25

Ivory Coast

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*,114*

  • SDRs, 94*, 123*, 126*

  • Subsidy Account, use of, 89*, 90

  • Trust Fund disbursements, 121*

Jamaica

  • Buffer stock facility, use of, 78

  • Exchange rate, 107*

  • Extended arrangement with Fund, 77, 79*,116*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 93*, 94*, 123*, 126*

  • Stand-by arrangement with Fund, 76

  • Supplementary financing facility, use of, 79, 80*

Japan

  • Balance of payments, 3, 21, 22, 23, 24, 41, 50

  • Economic activity and policies, 2†, 8, 9†, 22, 43, 45, 46†, 67†, 84†

  • Exchange rate, 22, 24, 25, 41, 42†, 43, 44†,47, 48*, 50, 63, 107*

  • General Arrangements to Borrow, 116*; lending under, 82

  • Gold purchased from Fund, 87*

  • International reserves, 45*

  • Manufactures, relative costs and prices, 26†

  • Manufacturing, labor costs in, 26†

  • Output, 2†, 8, 9†

  • Prices, 5, 8*, 26†

  • Rates of return on domestic money market instruments, 65

  • Role of yen as reserve currency, 61

  • SDRs, 66, 93, 95, 123*, 126*

  • Subsidy Account, contribution to, 90*

  • Supplementary financing facility, lending for, 82, 117*

  • Trade, 16, 22, 25

Jordan

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 126*

Kampuchea, Democratic

  • Exchange rate, 107*

  • Gold sales, profits received, 119*

  • Proposed gold purchase from Fund, 85 (fn.), 87* (fn.)

  • SDRs, 123*, 126*

Kenya

  • Exchange rate, 107*

  • Extended arrangement with Fund, 116*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 123*, 126*

  • Stand-by arrangement with Fund, 77, 79*, 110*

  • Subsidy Account, use of, 89*

  • Supplementary financing facility, use of, 79*

  • Trust Fund disbursements, 121*

Korea

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 126*

  • Stand-by arrangement with Fund, 77, 79*, 110*

  • Supplementary financing facility, use of, 79, 80*

Kuwait

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Oil facility financing, 117*

  • Special Drawing Rights Department, participation in, 90, 128* (fn)

  • Supplementary financing facility, lending for, 82, 117*

  • Trust Fund, contribution to, 88

Lao People’s Democratic Republic

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 126*

  • Trust Fund disbursements, 121*

Latin America and Caribbean

  • Balance of payments, 17*, 31, 33

  • Debt and debt service, 33

  • Output, 12*, 15

  • Prices, 12*, 15

  • SDRs, 66

  • Trust Fund disbursements, 88*

Lebanon

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 123*, 126*

Lesotho

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 123*, 126*

  • Trust Fund disbursements, 121*

Less Developed Countries

  • See Developing Countries

Liberia

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 126*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

Libyan Arab Jamahiriya

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 126*

  • Trust Fund, contribution to, 88 (fn.)

Luxembourg

  • European Monetary System, participation in, 41 (fn.), 109* (fn.)

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • SDRs, 94*, 123*, 126*

  • Subsidy Account, contribution to, 90*

Madagascar

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 93*, 94*, 123*, 126*

  • Trust Fund disbursements, 121*

Malawi

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*,114*

  • SDRs, 94*, 123*, 126*

  • Stand-by arrangement with Fund, 77, 79*, 110*

  • Subsidy Account, use of, 89*, 90

  • Supplementary financing facility, use of, 79*

  • Trust Fund disbursements, 121*

Malaysia

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 126*

Maldives

  • Exchange rate, 107* SDRs, 123*, 126*

Mali

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 123*, 126*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Malta

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 94*, 123*, 126*

Mauritania

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 123*, 126*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Mauritius

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases from Fund, 112*

  • SDRs, 94*, 123*, 126*

  • Stand-by arrangement with Fund, 77, 79*,110*

  • Supplementary financing facility, use of, 79, 80*

  • Trust Fund disbursements, 121*

Mexico

  • Exchange rate, 107*

  • Extended arrangement with Fund, 77, 116*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 95, 114*

  • SDRs, 94*, 95, 123*, 126*

Middle East

  • Balance of payments, 17*

  • Output, 12*, 15

  • Prices, 12*, 15

  • SDRs, 66

  • Trust Fund disbursements, 88*

Morocco

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 126*

  • Subsidy Account, use of, 89*, 90

  • Trust Fund disbursements, 121*

Nepal

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 126*

  • Trust Fund disbursements, 121*

Netherlands

  • Balance of payments, 24

  • European Monetary System, participation in, 41 (fn.), 109* (fn.)

  • Exchange rate, 107*

  • General Arrangements to Borrow, 116*

  • Gold purchased from Fund, 87*

  • Oil facility financing, 117*

  • SDRs, 94*, 123*, 126*

  • Subsidy Account, contribution to, 90*

  • Supplementary financing facility, lending for, 82, 117*

New Zealand

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Purchases and repurchases from Fund, 76, 112*, 114*

  • SDRs, 94*, 123*, 127*

  • Subsidy Account, contribution to, 90*

Nicaragua

  • Buffer stock facility, use of, 78

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 93*, 94*, 123*, 127*

  • Stand-by arrangement with Fund, 110*

Niger

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 119*

  • SDRs, 123*, 127*

  • Trust Fund disbursements, 121*

Nigeria

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Oil facility financing, 116*

  • SDRs, 94*, 123*, 127*

  • Supplementary financing facility, lending for, 82, 117*

Norway

  • Balance of payments, 24

  • Economic activity, 24

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Oil facility financing, 117*

  • SDRs, 94*, 123*, 127*

  • Subsidy Account, contribution to, 90*

Official Development Assistance (ODA), 3, 15, 18, 28, 31-32, 33, 35-36

Oil Facility in Fund

  • Borrowing by Fund, 68, 70, 77*, 82, 117*

  • Charges, 89, 96, 118*

  • Purchases by members, 76†, 77, 81, 89

  • Repayment by Fund, 58, 60, 68, 82, 95, 117*

  • Repurchases by members, 76, 80, 82, 114*-15*

  • See also Subsidy Account

Oman

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Oil facility financing, 117*

  • SDRs, 123*, 127*

Organization of Petroleum Exporting Countries(OPEC)

  • Contributions of members to Trust Fund, 88; oil price increases, 5, 27

Pakistan

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 127*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Panama

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 93*, 107*, 123*, 127*

  • Stand-by arrangement with Fund, 79*, 114*

  • Supplementary financing facility, use of, 79*

Papua New Guinea

  • Exchange rate, 107*

  • Gold purchased from Fund, 85, 87*

  • Gold sales, profits received, 120*

  • Repurchases from Fund, 114*

  • SDRs, 93*, 94*, 123*, 127*

  • Subsidy Account, use of, 89*, 90

  • Trust Fund disbursements, 121*

Paraguay

  • Exchange rate, 107*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 94*, 123*, 127*

Peru

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 77, 95, 112*, 114*

  • SDRs, 93*, 94*, 95, 123*, 127*

  • Stand-by arrangement with Fund, 77, 79*, 110*

  • Supplementary financing facility, use of, 79, 80*

Philippines

  • Exchange rate, 108*

  • Extended arrangement with Fund, 116*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 77, 112*, 114*

  • SDRs, 94*, 123*, 127*

  • Stand-by arrangement with Fund, 77, 110*

  • Subsidy Account, use of, 89*, 90

  • Supplementary financing facility, use of, 79, 80*

  • Trust Fund disbursements, 121*

Portugal

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Repurchases from Fund, 114*

  • SDRs, 93*, 123*, 127*

  • Stand-by arrangement with Fund, 110*

Primary Producing Countries

  • See Developing Countries

Publications of Fund, 130*

Qatar

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 94*, 123*, 127*

  • Trust Fund, contribution to, 88

Quotas of Fund Members

  • Increases in, 68, 70, 83, 95

  • Seventh General Review, 68, 70, 75, 81, 83,95

  • Sixth General Review, 81

  • Subscription payments, 68, 92*, 140-41

Romania

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 127*

  • Trust Fund, contribution to, 88

Rwanda

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 127*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

St. Lucia

  • Exchange rate, 108*

  • Membership in Fund, 83

  • Quota established, 83

  • Quota increase, 83

  • SDRs, 123*, 127*

  • Special Drawing Rights Department, participation in, 83, 91

St. Vincent and the Grenadines

  • Exchange rate, 108*

  • Membership in Fund, 83

  • Quota established, 83

  • SDRs, 123*, 127*

  • Special Drawing Rights Department, participation in, 83, 91

Sao TomÉ and Principe

  • Exchange rate, 108*

  • SDRs, 123*, 127*

Saudia Arabia

  • Exchange rate, 108*

  • Foreign exchange holdings, 68* (fn.)

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Oil facility financing, 117*

  • SDRs, 93, 94*, 123*, 127*

  • Subsidy Account, contribution to, 90*

  • Supplementary financing facility, lending for, 82, 117*

  • Trust Fund, contribution to, 88

Senegal

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 127*

  • Stand-by arrangement with Fund, 110*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Seychelles

  • Exchange rate, 108*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 127*

Sierra Leone

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 93*, 94*, 123*, 127*

  • Stand-by arrangement with Fund, 110*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Singapore

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 94*, 123*, 127*

Solomon Islands

  • Article VIII obligations, acceptance of, 97

  • Exchange rate, 108*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 127*

Somalia

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases from Fund, 112*

  • SDRs, 123*, 127*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

South Africa

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 127*

  • Subsidy Account, contribution to, 90*

Spain

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Repurchases from Fund, 114*

  • SDRs, 94*, 123*, 127*

  • Subsidy Account, contribution to, 90*

Special Drawing Rights

  • Acceptance of, 92, 143-45

  • Allocations, 31, 58, 73, 75, 90, 91, 92*,

  • 123*, 125*-28*; for first basic

  • period, 66; for third basic period, 66, 143

  • Characteristics, 72, 90

  • Charges, payment in, 92*, 93, 95

  • Currencies transferred for, 93, 129*

  • Holdings: by General Resources Account, 66, 92*, 93-95, 96, 97*, 124; by “other holders,” 94, 143-45; by participants, 59*, 60, 66, 125*-28*

  • Inclusion in operational budget, 94

  • Interest and assessments on Fund holdings, 92*,97*, 124*, 125*-28*

  • Interest rate on, 61, 65 (fn.), 67t, 72, 75, 84, 90-91, 96

  • “Other holders” prescribed by Fund, 72, 75, 91, 95, 128* (fn.), 143-45

  • Purchases and repurchases by members, 92*, 94, 95, 112*-13*, 124*

  • Reconstitution of participants’ holdings, 91, 92*, 124*

  • Remuneration paid to members, 92*, 93, 124*

  • Replenishment of participants’ currencies, use in, 124*

  • Reserve asset, role as, 72, 75, 90, 91

  • Subscription payments in, 92*, 93

  • Transactions and operations, summary of, 125*-28*

  • Transfers: by agreement, 91, 92, 93, 124*, 125*-28*, 129*; to and from General Resources Account, 92*, 93-95, 124*, 125*-28*; total, 124*; with designation, 91, 92*, 93, 94*, 124*, 125*-28*, 129*, 132-36

  • Unit of account, use as, 91

  • Uses, 72, 75, 91, 92, 141-45

  • Valuation, 63, 65 (fn.), 72, 75, 90-91

  • See also individual countries

Special Drawing Rights Department

  • Participants, 75, 83, 90, 91, 92*, 125*-28*, 143

  • Transactions and operations, 91-93, 125*-28*

  • See also Special Drawing Rights

Sri Lanka

  • Exchange rate, 108*

  • Extended arrangement with Fund, 116*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 112*,114*

  • SDRs, 94*, 123*, 127*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Staff of Fund, 100

Stand-By Arrangements for Fund Members, 70, 73, 74, 79*, 81, 110*, 111*; format, 148-50; performance criteria, 138-39; purchases and repurchases by members, 76-77, 80; use of supplementary financing facility under, 76, 77, 78, 110*

Subscriptions of Fund MembersSee Quotas of Fund Members

Subsidy Account, 73, 89, 90; beneficiaries, 89-90; contributors, 89-90

Substitution Account, 72

Sudan

  • Exchange rate, 108*

  • Extended arrangement with Fund, 77, 79*, 116*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 93*, 94*, 123*, 127*

  • Subsidy Account, use of, 89*

  • Supplementary financing facility, use of, 79*

  • Trust Fund disbursements, 121*

Supplementary Financing Facility

  • Borrowing by Fund, 68, 70, 75, 77*, 82, 117*, 131-32

  • Charges, 83-84, 96, 118*

  • Commitments to members, 79*

  • Establishment, 78

  • Extended arrangements, use with, 76, 77, 78, 79* Interest rate payable by Fund, 82, 131—32

  • Main features, 78-79, 82

  • Purchases by members, 77, 79, 80*, 112*-13*

  • Repayment by Fund, 95

  • Repurchases by members, 79

  • Special circumstances clause, use under, 80*

  • Stand-by arrangements, use with, 76, 77, 79*, 110*

Suriname

  • Exchange rate, 108* SDRs, 123*, 127*

Surveillance over Exchange Rate Policies

  • Article IV authority for, 52, 57

  • Article IV consultations, 53, 57, 73, 96

  • “Asymmetry” of, 57, 58

  • Establishment, 57

  • Fund’s approach to, 35, 40, 52, 56, 57, 58

  • Fund’s experience with, 52, 53, 56, 57

  • Global surveillance, 53

  • Supplemental surveillance procedure, 53, 58

Swaziland

  • Exchange rate, 108*

  • Gold sales, profits received, 120*

  • SDRs, 123*, 127*

  • Trust Fund disbursements, 121*

Sweden

  • Exchange rate, 108*

  • General Arrangements to Borrow, 116*

  • Gold purchased from Fund, 87*

  • Oil facility financing, 117*

  • SDRs, 94*, 123*, 127*

  • Subsidy Account, contribution to, 90*

Switzerland

  • Balance of payments, 24

  • Borrowing by Fund, 77*, 82

  • Economic activity and policies, 41, 45, 46t

  • Exchange rate, 41, 42†, 44†, 47, 48*, 63

  • General Arrangements to Borrow, association with, 82

  • International reserves, 45*

  • Oil facility financing, 117*

  • Role of Swiss franc as reserve currency, 61

  • Subsidy Account, contribution to, 90

  • Supplementary financing facility, lending for, 82, 117*

Syrian Arab Republic

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 123*, 127*

Tanzania

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 127*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Technical Assistance and Training by Fund, 75-76, 97-99

Thailand

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 123*, 127*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

Togo

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 127*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

Trinidad and Tobago

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Oil facility financing, 117*

  • SDRs, 94*, 123*, 127*

Trust Fund

  • Disbursements, 73, 74*, 86, 88, 89, 121*,132

  • Establishment, 85

  • Gold auctions, 66, 75, 85, 86, 88*

  • Investments, 86, 88, 89

  • Members eligible for assistance, 75, 88, 89

  • Reimbursement of General Resources Account, 88

  • Terms and conditions of loans, 89

Tunisia

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 94*, 123*, 127*

Turkey

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Prices, 12* (fn.)

  • Purchases and repurchases from Fund, 77, 112*, 114*

  • SDRs, 93*, 94*, 95, 123*, 127*

  • Stand-by arrangement with Fund, 79*, 110*

  • Supplementary financing facility, use of, 79*

Uganda

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 112*, 114*

  • SDRs, 94*, 123*, 127*

  • Stand-by arrangement with Fund, 110*

  • Trust Fund disbursements, 121*

United Arab Emirates

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 94*, 123*, 127*

  • Trust Fund, contribution to, 88

United Kingdom

  • Balance of payments, 21, 22*, 23, 50

  • Economic activity, 2, 3, 7, 8, 9†, 10, 23, 43, 45, 46†, 67†, 84†

  • European Monetary System, participation in, 41 (fn.), 60

  • Exchange rate, 23, 24, 25, 41, 42†, 43, 44†, 48*, 50, 63, 108*

  • General Arrangements to Borrow, 116*

  • Gold purchased from Fund, 87*

  • International reserves, 45*

  • Manufactures, relative costs and prices, 26†

  • Manufacturing, labor costs, 261

  • Output, 2†, 7, 8, 9†

  • Prices, 5, 7, 8*, 26†

  • Purchases and repurchases from Fund, 58, 60,80, 82,95, 114*

  • Rates of return on domestic money market instruments, 65, 66

  • Role of pound as reserve currency, 61

  • SDRs, 66, 93, 94*, 95, 123*, 127*

  • Stand-by arrangement with Fund, 81

  • Subsidy Account, contribution to, 90*

  • Trade, 23, 25

United States

  • Balance of payments, 21, 22, 23, 25, 41, 50, 60, 69

  • Economic activity and policies, 2, 3, 5, 6, 7, 8, 9†, 10, 11, 16, 21, 24, 25, 41, 43, 46†, 67†, 70, 84†

  • Exchange rate, 22, 24, 25, 41, 42†, 43, 44†, 47, 48*, 50, 60, 63, 69, 108*

  • General Arrangements to Borrow, 116*; borrowing under, 82

  • Gold purchased from Fund, 87*

  • International reserves, 45*, 63, 71

  • Manufactures, relative costs and prices, 26†

  • Manufacturing, labor costs in, 6†, 7†, 26†

  • Official claims on, 61, 68*

  • Oil prices in, 6

  • Output, 2, 3, 8, 9

  • Prices, 5, 6†, 8*, 9, 10, 26†

  • Purchases from Fund, 68, 76

  • Rates of return on domestic money market instruments, 65, 66

  • Reserve position in Fund, 68

  • Role of dollar as reserve currency, 61, 63, 71

  • SDRs, 66, 93, 95, 123*, 127*

  • Subsidy Account investments in, 90

  • Supplementary financing facility, lending for, 82, 117*

  • Trade, 8, 16, 22, 25

  • Trust Fund investments, 89 Wages, 5, 6

Upper Volta

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 123*, 127*

  • Trust Fund disbursements, 121*

Uruguay

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 94*, 123*, 127*

  • Stand-by arrangement with Fund, 110*

Venezuela

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Oil facility financing, 116*

  • SDRs, 94*, 123*, 127*

  • Subsidy Account, contribution to, 90*

  • Supplementary financing facility, lending for, 82, 117*

  • Trust Fund, contribution to, 88

Viet Nam

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 127*

  • Trust Fund disbursements, 121*

Western Samoa

  • Exchange rate, 108*

  • Compensatory financing facility, use of, 80

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Repurchases from Fund, 80, 114*

  • SDRs, 93*, 94*, 123*, 127*

  • Stand-by arrangement with Fund, 110*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

World Bank

  • Cooperation with Fund, 38

World Trade

  • See International Trade

Yemen Arab Republic

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • SDRs, 94*, 123*, 127*

Yemen, People’s Democratic Republic of

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Repurchases from Fund, 114*

  • SDRs, 123*, 127*

  • Subsidy Account, use of, 89*

  • Trust Fund disbursements, 121*

Yugoslavia

  • Exchange rate, 108*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 76, 113*, 115*

  • SDRs, 94*, 123*, 127*

  • Stand-by arrangement with Fund, 110*

  • Subsidy Account, contribution to, 90*

  • Trust Fund, contribution to, 88

Zaïre

  • Exchange rate, 109*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Prices, 12* (fn.)

  • Purchases and repurchases from Fund, 113*, 115*

  • SDRs, 93*, 94*, 123*, 128*

  • Stand-by arrangement with Fund, 110*

  • Subsidy Account, use of, 89*, 90

  • Trust Fund disbursements, 121*

Zambia

  • Exchange rate, 109*

  • Gold purchased from Fund, 87*

  • Gold sales, profits received, 120*

  • Purchases and repurchases from Fund, 113*, 115*

  • SDRs, 94*, 123*, 128*

  • Stand-by arrangement with Fund, 110*

  • Subsidy Account, use of, 90

  • Trust Fund disbursements, 121*

Zimbabwe

  • Application for Fund membership, 83

See Annual Report, 1978, page 115.

Executive Board Decision No. 4490-(74/140), adopted November 6, 1974. See Annual Report, 1975, page 92.

Selected Decisions of the International Monetary Fund and Selected Documents, Eighth Issue (Washington, 1976), pages 185-86.

See above.

See Annual Report, 1978, pages 125-26.

See Annual Report, 1979, pages 138-39.

Selected Decisions of the International Monetary Fund and Selected Documents, Supplement to Eighth Issue (Washington, 1978), pages 18-19.

See Annual Report, 1979, pages 136-38.

Selected Decisions of the International Monetary Fund and Selected Documents, Eighth Issue (Washington, 1976), pages 98-113.

See Annual Report, 1979, pages 127-28.

Selected Decisions of the International Monetary Fund and Selected Documents, Eighth Issue (Washington, 1976), pages 50-54.

See pages 135-36.

Under Executive Board Decision No. 6275-(79/158), the Fund aims to promote over time the equalization of the ratios of members’ positions in the Fund to their gold and foreign exchange holdings.

Under Executive Board Decision No. 6275-(79/158) G/S, adopted September 14, 1979 [page 136], “the Executive Board … will determine from time to time the approximate range within which the Fund will aim to maintain these [SDR] holdings.”

There are certain circumstances in which the principle of the “pass through’’ cannot be maintained: for example, if a member repurchases with SDRs and the lender does not wish to receive SDRs in repayment.

If the Fund did not repay the lender, it would continue to have to pay interest on the outstanding borrowing while it would no longer receive charges at the rates payable under the oil facility or the supplementary financing facility; this would normally involve a financial loss for the Fund.

It will be noted that paragraph 6 of the guidelines on early repurchases does not envisage sales of a currency as a means of settling obligations falling due during a quarterly period. …

It will be recalled that, under the guidelines, the basic condition for an expectation of a repurchase under Article V, Section 1(b) is that the member’s balance of payments and reserve position is judged sufficiently strong. It is, however, possible that the calculations under the guidelines would not yield an amount that the member was expected to repurchase; for example, the member may have “credit” for voluntary early repurchases. Nevertheless, it should be stressed that it is not the intention of the procedures proposed in paragraph 5 to limit sales of the currency of a member with outstanding purchases to the amount calculated under the guidelines for early repurchases. On the contrary, if a member whose position is judged sufficiently strong is willing to reduce its outstanding purchases at a faster rate than under the guidelines, the Fund should normally welcome the willingness of the member to do so.

In arrangements providing for supplementary financing, the phrase “plus 12.5 per cent of quota” will be added.

In arrangements providing for supplementary financing an additional paragraph would be added for the apportionment of purchases between ordinary and supplementary resources: “Purchases under this arrangement shall be made from …” The text to be added will depend on the situation of the member at the time. …

The performance criteria enumerated here are indicative only; there may be more, or fewer, performance criteria according to the requirements of the particular situation.

In arrangements providing for supplementary financing an additional paragraph would be added for the apportionment of purchases between ordinary and supplementary resources: “(d) Purchases under this arrangement shall be made from …” The text to be added will depend on the situation of the member at the time. …

See Attachment page 160–

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