Explanatory Note

International Monetary Fund. External Relations Dept.
Published Date:
September 1958
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Member countries maintaining restrictions on payments and transfers for current international transactions under Article XIV, Section 2, of the Fund Agreement are required to consult with the Fund each year as to the further retention of those restrictions.

The Fund has now completed its sixth series of annual consultations. These consultations, which have taken place either in the member country or in Washington, have enabled the Fund to maintain direct and close contacts with members and have provided an opportunity for discussion of the economic and financial problems which give rise to restrictive and discriminatory practices and of the possibilities of further relaxation.

Since the last Report was written, no additional countries have ceased to avail themselves of the postwar transitional period arrangements of Article XIV. Of the 67 members of the Fund, 56 have an obligation to consult under Article XIV, including 7 members which have joined the Fund since the last Report was issued.

The following surveys of individual exchange systems of various countries are presented in three groups. The first comprises member countries which, for the most part, maintain their existing restrictions under the postwar transitional period arrangements of Article XIV. In some of these countries, however, restrictions to which the Fund has given approval under Article VIII of the Agreement may also be in operation. The second group comprises member countries which do not apply any restrictions under Article XIV; they are referred to as “Article VIII countries.” The third group comprises certain countries which, at the time this Report was written, were not members of the Fund.

The surveys relate generally to the exchange systems as at December 31, 1957. For a few countries, however, the surveys relate to the exchange systems at a later date or include references to significant developments which took place in early 1958. A standardized framework has been employed in drafting these surveys: each system is described under similar headings and a final section under each country lists chronologically the more significant changes which took place in the restrictive system during 1957. Notes on the subject matter under the descriptive headings used are given in the Explanatory Note to Part II of the Sixth Annual Report on Exchange Restrictions (pages 21-24), published in 1955.

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