Chapter

Article XVIII, Section 2

Author(s):
International Monetary Fund
Published Date:
July 2012
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Allocation of Special Drawing Rights

Allocation of Special Drawing Rights for the First Basic Period

Resolution

Whereas the Managing Director has submitted a proposal for the allocation of special drawing rights pursuant to Article XXIV,1 Section 4, of the Articles of Agreement of the International Monetary Fund; and

Whereas in the Report containing his proposal, the Managing Director has declared that, before making the proposal, he had satisfied himself that the proposal will be consistent with the provisions of Article XXIV, Section 1(a), and that, after consultation, he has ascertained that there is broad support among participants for the proposal;

Whereas the Managing Director, on the occasion of this proposal for the first allocation, has satisfied himself that the provisions of Article XXIV, Section 1(b), have been met and that there is broad support among participants to begin allocations; and

Whereas the Executive Directors have concurred in the proposal of the Managing Director;

NOW, therefore, the Board of Governors, being satisfied that the proposal of the Managing Director meets the principles and considerations governing the allocation of special drawing rights set forth in Article XXIV, Section 1, hereby RESOLVES that:

The Fund shall make allocations to participants in the Special Drawing Account, in accordance with the Articles of Agreement, during a basic period of three years which shall begin on January 1, 1970.

Allocations during the basic period shall be made on January 1, 1970, January 1, 1971, and January 1, 1972.

Allocations shall be on the basis of quotas on the day before the dates of the allocations.

The rate for the first allocation shall be 17.5 percent and the rate for the second and third allocations shall be 15 percent, provided that these rates shall be adjusted, to the nearest one tenth of one percentage point, by multiplying them by the ratio of $20 billion to the total of quotas on the day before allocation of those participants which were members of the Fund on December 31, 1969.

Resolution No. 24-12,

October 3, 1969

Allocation of Special Drawing Rights for the Third Basic Period

Resolution

Whereas the Managing Director has submitted a proposal for the allocation of special drawing rights pursuant to Article XVIII, Section 4, of the Articles of Agreement of the International Monetary Fund;

Whereas in the Report containing his proposal, the Managing Director has declared that, before making the proposal, he had satisfied himself that the proposal would be consistent with the provisions of Article XVIII, Section 1(a), and that, after consultation, he has ascertained that there is broad support among participants for the proposal; and

Whereas the Executive Board has concurred in the proposal of the Managing Director;

Now, Therefore, the Board of Governors, being satisfied that the proposal of the Managing Director meets the principles governing the allocation of special drawing rights set forth in Article XVIII, Section 1(a) hereby resolves that:

The third basic period, which began on January 1, 1978, shall end on December 31, 1981.

The Fund shall make allocations to participants in the Special Drawing Rights Department that are eligible, in accordance with the Articles of Agreement, to receive allocations during the third basic period.

Allocations shall be made as of the first day of the month following the date on which this resolution becomes effective and as of the same date in each of the subsequent two years.

The rate for the allocations to participants eligible to receive allocations in accordance with 2 above shall be the percentage, rounded to the nearest one-tenth of one percentage point, resulting from dividing SDR 4 billion by the total of quotas on the day before allocation of those participants that were eligible to receive allocations on the date on which this resolution becomes effective.

This resolution shall become effective if it and the proposed resolution on the Seventh General Review of Quotas are adopted by the necessary majority of the total voting power for each.

Resolution No. 34-3,

effective December 11, 1978

Allocation of Special Drawing Rights for the Ninth Basic Period

Resolution

RESOLVED:

Whereas the Managing Director has submitted a proposal for the allocation of special drawing rights pursuant to Article XVIII, Section 4(c) of the Articles of Agreement of the International Monetary Fund;

Whereas in the Report containing his proposal, the Managing Director has declared that, before making the proposal, he had satisfied himself that the proposal would be consistent with the provisions of Article XVIII, Section 1(a), and that, after consultation, he has ascertained that there is broad support among participants for the proposal; and

Whereas the Executive Board, in accordance with Article XVIII, Section 4(a), has concurred in the proposal of the Managing Director;

NOW, THEREFORE, the Board of Governors, being satisfied that the proposal of the Managing Director meets the principles governing the allocation of special drawing rights set forth in Article XVIII, Section 1(a), hereby resolves that:

1. The Fund shall make an allocation of special drawing rights to participants in the Special Drawing Rights Department that are eligible, in accordance with the Articles of Agreement, to receive allocations during the ninth basic period.

2. The allocation shall be made on the twenty-first day following the date on which this resolution becomes effective.

3. The rate for the allocation shall be 74.1309799813 percent of the quota of each eligible participant on the date on which this resolution becomes effective.

Resolution 64-3,

effective August 7, 2009.

Ed. Note: Corresponds to Article XVIII of the Articles of Agreement after the Second Amendment.

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