Chapter

CHAPTER V. Forms of Communication for Transactions and Operations in the SDR Department

Author(s):
International Monetary Fund
Published Date:
June 1995
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Any cable or telex communication from a holder to the Fund relating to the use or receipt of SDRs should bear the test number of the holder's fiscal or transfer agency. Care should be taken, when necessary, to include the relevant reference to the Articles of Agreement and to identify the communication by the prefix “SDR” followed by the number of the cable.

Telephone and telegraph charges and postal fees incurred by participants acting upon instructions from the Fund—for example, to provide currency, arrange for an exchange of currency, or provide information about exchange rates—may be charged to the Fund. The Fund's No. 2 Account should be debited quarterly, and advice of all debits, distinguishing them from expenses relating to the GRA, should be sent to the Treasurer's Department of the Fund by airmail.

1. Transactions by Agreement

In accordance with Article XIX, Section 2(b), participants and, on the basis of subsequent Executive Board Decisions, prescribed holders can use SDRs freely in transactions by agreement among themselves. If the Fund's assistance is desired in arranging such a transaction, the holder wishing to sell (or acquire) SDRs should contact the Treasurer's Department. Sections (a) and (b) list the procedural steps involved when participants or prescribed holders wish to buy or sell SDRs in a transaction by agreement to be arranged by the Fund. Section (c) describes procedures to be followed for transactions by agreement between participants and prescribed holders that are not arranged by the Fund on their behalf. For illustrative purposes, it is assumed that the fiscal agencies of the buyer and the seller of SDRs are their central banks.37

(a) Procedures for Completing a Transaction by Agreement to Buy SDRs with Fund Assistance

(i) Cable requesting Fund assistance

All holders of SDRs may seek Fund assistance in arranging a transaction by agreement. The cable requesting assistance, bearing the appropriate test number of the holder's fiscal agency, should be addressed to the Treasurer's, Interfund, and should indicate the proposed value date, the amount of SDRs to be bought, and the preferred currency to be used. The cable should be received by the Fund at least four business days before the proposed value date.

An example of such a request for a transaction by agreement follows:

SAMPLE

SDR NO.

TEST NO.

VALUE (DATE) (HOLDER) WISHES TO ACQUIRE SDR (AMOUNT) AGAINST A FREELY USABLE CURRENCY, PREFERABLY (PREFERRED CURRENCY), IN A TRANSACTION BY AGREEMENT.

CENTRAL BANK OF (HOLDER)

Transactions by agreement are not limited to freely usable currencies; any monetary asset other than gold for which the Fund has established a representative rate may be used if both parties agree to it.

(ii) Notification cable from the Fund

Upon receipt of the above cable, the Fund will promptly acknowledge the request and notify the buyer of SDRs that a transaction by agreement will be arranged for the amount of SDRs against the payment of a specified freely usable currency on the value date specified. The notification cable will also specify the date for the exchange rate, that is, the date on which the currency equivalent of the SDR amount is determined and on which the Fund will cable the precise payment instructions for the transaction. Unless the buyer requests otherwise, the exchange rate date is generally two or three business days from the value date of the transaction, as arranged by the Fund with the seller of SDRs.

An example of the notification cable from the Fund follows:

SAMPLE

SDR NO.

TEST NO.

REFERENCE YOUR CABLE DATED (DATE) CONCERNING YOUR ACQUISITION OF SDR (AMOUNT).

1. FUND WILL ARRANGE ON YOUR BEHALF A TRANSACTION BY AGREEMENT VALUE (DATE) AGAINST PAYMENT OF (SPECIFIED CURRENCY) USING THE EXCHANGE RATE ON (DATE).

2. FUND WILL CABLE YOU DETAILS ON (DATE).

TREASURER'S

INTERFUND

(iii) Payment instruction cable from the Fund

On the date that the exchange rate to be used for the transaction is determined, the Fund issues payment instructions to the buyer of SDRs. The instructions specify the exact amount of specified currency to be paid to the account of the seller at its correspondent bank (for example, the Federal Reserve Bank of New York, New York). In addition, the payment instruction cable will request the buyer to cable the Fund by the next business day the arrangements made for payment of currency.

An example of the cable to the buyer from the Fund containing payment instructions follows:

SAMPLE

SDR NO.

TEST NO.

REFERENCE YOUR CABLE DATED (DATE) AND FUND CABLE SDR NO. (CABLE NUMBER) DATED (DATE) CONCERNING YOUR ACQUISITION OF SDRS.

1. TO ACQUIRE SDR (AMOUNT) FROM (SELLER) IN A TRANSACTION BY AGREEMENT, PLEASE PAY IN IMMEDIATELY AVAILABLE FUNDS VALUE (DATE) (SPECIFIED CURRENCY) (AMOUNT) TO (ACCOUNT NUMBER) OF (SELLER'S CENTRAL BANK) MAINTAINED WITH (SELLER'S CORRESPONDENT BANK). ABOVE CURRENCY AMOUNT CALCULATED AT RATE OF ONE (SPECIFIED CURRENCY) EQUALS SDR (AMOUNT) ON (DATE).

2. PLEASE INSTRUCT (SELLER'S CORRESPONDENT BANK) TO CONFIRM RECEIPT OF FUNDS TO (SELLER'S CENTRAL BANK).

3. THE SDR ACCOUNT OF (BUYER) WILL BE CREDITED ON DATE CURRENCY IS RECEIVED.

4. TO AVOID LOSS OF OVERNIGHT INVESTMENT INCOME, PLEASE ENSURE THAT PAYMENT IS MADE BEFORE (LOCAL TIME) ON THE VALUE DATE. PLEASE CABLE NOT LATER THAN (DATE) ARRANGEMENTS MADE FOR PAYMENT, INDICATING NAME OF YOUR CORRESPONDENT BANK.

TREASURER'S

INTERFUND

(iv) Payment arrangement cable from the buyer

Upon receiving the above payment instruction cable from the Fund, the buyer sends the Fund by the next business day a cable advising the arrangements made for payment.

SAMPLE

SDR NO.

TEST NO.

REFERENCE FUND CABLE SDR NO. (CABLE NUMBER) DATED (DATE) REGARDING THE ACQUISITION OF SDR (AMOUNT) VALUE (DATE). WE HAVE ADVISED (BUYER'S CORRESPONDENT BANK) TO PAY (SPECIFIED CURRENCY) (AMOUNT) VALUE (DATE) TO THE ACCOUNT OF (SELLER'S CENTRAL BANK) WITH THE (SELLER'S CORRESPONDENT BANK) BEFORE (LOCAL TIME) AND TO CONFIRM RECEIPT OF FUNDS TO THE BENEFICIARY.

CENTRAL BANK OF (BUYER)

(v) Credit confirmation cable from the Fund

On the value date or on the day immediately after, the seller of SDRs receiving currency from the buyer confirms such receipt to the Fund (see also Section b(iv) below) as confirmed to them by their correspondent bank. Upon receipt of this information, the Fund then confirms to the buyer that its SDR account has been credited with the amount of SDRs on the value date specified.

SAMPLE

SDR NO.

TEST NO.

REFERENCE YOUR CABLE NO. (CABLE NUMBER) DATED (DATE) AND FUND CABLE SDR NO. (CABLE NUMBER) DATED (DATE) CONCERNING YOUR ACQUISITION OF SDRS IN A TRANSACTION BY AGREEMENT WITH (SELLER).

THE SDR ACCOUNT OF (BUYER) HAS BEEN CREDITED WITH SDR (AMOUNT) VALUE (DATE).

TREASURER'S

INTERFUND

(b) Procedures for Completing a Transaction by Agreement to Sell SDRs with Fund Assistance

This section details the procedural steps involved in a sale of SDRs by a participant or prescribed holder. As before, the cable requesting the Fund's assistance in the sale of SDRs, bearing the appropriate test number of the member's fiscal agency, should be addressed to the Treasurer's, Interfund, and should indicate the value date, the amount of SDRs to be sold, and the preferred currency to be received in payment, and the account and correspondent bank to which the currency is to be paid.

(i) Request for a sale of SDRs

SAMPLE

SDR NO.

TEST NO.

VALUE (DATE) (SELLER) WISHES TO SELL SDR (AMOUNT) IN A TRANSACTION BY AGREEMENT AGAINST (SPECIFIED CURRENCY) TO BE CREDITED TO ACCOUNT NO. (ACCOUNT NUMBER) OF (SELLER'S CENTRAL BANK) MAINTAINED WITH (SELLER'S CORRESPONDENT BANK).

CENTRAL BANK OF (SELLER)

(ii) Notification cable from the Fund

The Fund, upon receipt of the cable requesting to sell SDRs, will promptly acknowledge the request and notify the seller as follows:

SAMPLE

SDR NO.

TEST NO.

REFERENCE YOUR CABLE DATED (DATE) CONCERNING YOUR SALE OF SDR (AMOUNT).

1. FUND WILL ARRANGE ON YOUR BEHALF A TRANSACTION BY AGREEMENT VALUE (DATE) USING THE EXCHANGE RATE ON (DATE) TO SELL SDR (AMOUNT) AGAINST (SPECIFIED CURRENCY) TO BE CREDITED TO YOUR ACCOUNT (ACCOUNT NUMBER) WITH (SELLER'S CORRESPONDENT BANK).

2. FUND WILL CABLE YOU DETAILS ON (DATE).

TREASURER'S

INTERFUND

(iii) Payment arrangement cable from Fund to seller

The Fund, on the date the payment instruction cable is sent to the buyer, informs the seller as follows:

SAMPLE

SDR NO.

TEST NO.

REFERENCE YOUR CABLE DATED (DATE) AND FUND CABLE SDR NO. (CABLE NUMBER) DATED (DATE) CONCERNING YOUR SALE OF SDRS.

1. (BUYER) WISHES TO ACQUIRE SDR (AMOUNT) FROM (SELLER) IN A TRANSACTION BY AGREEMENT. ACCORDINGLY, VALUE (DATE) WE EXPECT (BUYER'S CENTRAL BANK) TO PAY (SPECIFIED CURRENCY) (AMOUNT) TO ACCOUNT OF (SELLER'S CENTRAL BANK) MAINTAINED WITH THE (SELLER'S CORRESPONDENT BANK).

2. ABOVE CURRENCY AMOUNT CALCULATED AT RATE OF ONE (SPECIFIED CURRENCY) EQUALS SDR (AMOUNT) ON (DATE).

3. PLEASE CONFIRM RECEIPT OF CURRENCY BY TESTED CABLE TO THE FUND. THE SDR ACCOUNT OF (SELLER) WILL BE DEBITED ON DATE CURRENCY IS RECEIVED.

TREASURER'S INTERFUND

(iv) Confirmation of receipt of currency

When the seller of SDRs receives confirmation from its correspondent bank that the amount of the specified currency has been transferred to its account by the buyer, it sends the following cable confirming the receipt of currency to the Fund.

SAMPLE

SDR NO.

TEST NO.

REFERENCE FUND CABLE SDR NO. (CABLE NUMBER) DATED (DATE) CONCERNING (SELLER'S) SALE OF SDR (AMOUNT). (SPECIFIED CURRENCY) (AMOUNT) WAS RECEIVED VALUE (DATE). ACCORDINGLY, PLEASE DEBIT (SELLER'S) SDR ACCOUNT WITH SDR (AMOUNT) AND CREDIT SAME TO SDR ACCOUNT OF (BUYER), SAME VALUE.

CENTRAL BANK OF (SELLER)

(v) Fund cable to seller confirming debit to its SDR account

SAMPLE

SDR NO.

TEST NO.

REFERENCE YOUR CABLE NO. (CABLE NUMBER) DATED (DATE) AND FUND CABLE SDR NO. (CABLE NUMBER) DATED (DATE) CONCERNING YOUR SALE OF SDRS IN A TRANSACTION BY AGREEMENT WITH (BUYER).

THE SDR ACCOUNT OF (SELLER) HAS BEEN DEBITED WITH SDR (AMOUNT) VALUE (DATE).

TREASURER'S

INTERFUND

(c) Transactions by Agreement Without Fund Assistance

As noted earlier, participants and prescribed holders can use SDRs freely in transactions by agreement among themselves. Upon completion of such a transaction by agreement, the holder that provided the SDRs must notify the Fund, in accordance with Rule P-8, indicating the amount of SDRs used, the amount of currency received and the exchange rate used, the participant with which the transaction was undertaken, and the value date of the transaction.

An example of such a notification cable follows:

SAMPLE

SDR NO.

TEST NO.

VALUE (DATE), (CURRENCY AMOUNT) HAS BEEN RECEIVED IN EXCHANGE FOR SDR (AMOUNT) FROM (BUYER) IN A TRANSACTION BY AGREEMENT. CURRENCY CALCULATED AT THE RATE OF ONE (SPECIFIED CURRENCY) EQUALS SDR (AMOUNT) ON (DATE). ACCORDINGLY, PLEASE DEBIT (SELLER'S) SDR ACCOUNT WITH SDR (AMOUNT) AND CREDIT SAME TO SDR ACCOUNT OF (BUYER), SAME VALUE.

CENTRAL BANK OF (SELLER)

2. Prescribed Operations

(a) Use of SDRs in Settlement of Financial Obligations

A holder may use SDRs in settlement of financial obligations by agreement with another holder. Both parties to this operation must inform the Fund of the denomination and amount of the obligation and the intended value date of the operation. As required by Rule P-7, both parties shall declare that the intended use of SDRs is in accordance with this prescription.

SAMPLE

SDR NO.

TEST NO.

1. (NAME OF HOLDER) INTENDS TO TRANSFER [OR ACQUIRE]

SDR TO [FROM] (OTHER PARTY) IN ACCORDANCE WITH THE FUND'S DECISION AUTHORIZING THE USE OF SDRS IN SETTLEMENT OF FINANCIAL OBLIGATIONS.

2. THE OBLIGATION IS DENOMINATED IN (CURRENCY/OR UNIT) AND AMOUNTS TO (AMOUNT OF OBLIGATION IN CURRENCY OR UNIT OF OBLIGATION). ON THE BASIS OF THE SDR/(CURRENCY OR UNIT) RATE OF (RATE) ON (DATE, TWO OR THREE BUSINESS DAYS BEFORE VALUE DATE), THIS CORRESPONDS TO SDR (AMOUNT).

3. ACCORDINGLY, PLEASE DEBIT THE SDR ACCOUNT OF (NAME OF PROVIDER) WITH SDR (AMOUNT) AND CREDIT SAME TO THE SDR ACCOUNT OF (NAME OF RECIPIENT), VALUE (DATE).

FISCAL AGENCY

(b) Use of SDRs in Loans

A holder by agreement with another holder may make a loan of SDRs to another holder. Both parties to this operation must inform the Fund of the denomination, amount, rate of interest, maturity, means of repayment, and the intended value date of the operation. As required by Rule P-7, both parties shall declare that the intended use of SDRs is in accordance with this prescription.

SAMPLE

SDR NO.

TEST NO.

1. (NAME OF HOLDER) INTENDS TO LEND [OR BORROW] SDRS IN ACCORDANCE WITH THE FUND'S DECISION AUTHORIZING LOANS OF SDRS.

2. THE LOAN IS DENOMINATED IN (CURRENCY OR UNIT). INTEREST IS TO BE PAID IN (CURRENCY OR UNIT) AT THE RATE OF (RATE OF INTEREST) PERCENT PER ANNUM. THE LOAN MATURES ON (DATE) AT WHICH TIME IT WILL BE REPAID IN EQUIVALENT VALUE OF (CURRENCY OR UNIT).

3. ACCORDINGLY, PLEASE DEBIT THE SDR ACCOUNT OF (NAME OF LENDER) WITH SDR (AMOUNT) AND CREDIT SAME TO ACCOUNT OF (BORROWER), VALUE (DATE).

FISCAL AGENCY

(c) Use of SDRs in Pledges

A holder, by agreement with another holder, may pledge SDRs to secure a financial obligation. Both parties to this operation must inform the Fund of the amount and the denomination of the obligation to be secured by the pledge, the amount of SDRs to be pledged, the effective date of the pledge, and the party or entity designated by the parties to the operation to give instructions to the Fund with regard to the pledge. As required by Rule P-7, both parties shall declare that the intended use of SDRs is in accordance with this prescription.

SAMPLE

SDR NO.

TEST NO.

1. (NAME OF HOLDER) INTENDS TO USE SDRS IN ACCORDANCE WITH FUND'S DECISION AUTHORIZING USE OF SDRS AS A PLEDGE.

2. THE OBLIGATION TO BE SECURED IS IN (CURRENCY OR UNIT) AND AMOUNTS TO (AMOUNT OF OBLIGATION). THE SDRS ARE TO BE PLEDGED FROM (DATE) TO (DATE).

3. THE PARTY [OR OTHER ENTITY] DESIGNATED TO GIVE INSTRUCTIONS TO THE FUND TO TERMINATE THE PLEDGE OR TO TRANSFER THE SDRS TO THE PLEDGEE IS (NAME OF THE PARTY) [OR OTHER ENTITY].

4. ACCORDINGLY, PLEASE RECORD SDR (AMOUNT) AS PLEDGED BY (NAME OF HOLDER) IN FAVOR OF (NAME OF PLEDGEE).

FISCAL AGENCY

(d) Use of SDRs in Transfers as Security for Performance of Financial Obligations

A holder, by agreement with another holder, may transfer SDRs to that holder in order to secure the performance of a financial obligation to that holder. Both parties involved in the transfer of SDRs as a security must inform the Fund of the amount and denomination of the obligation to be secured, the amount of SDRs to be transferred, the effective date of the transfer, any agreement by the parties regarding SDRs received from the Fund as interest in respect of the transferred SDRs, and the party or other entity designated by the parties to the operation to give instructions to the Fund for the retransfer. As required by Rule P-7, both parties shall declare that the intended use of SDRs is in accordance with this prescription.

SAMPLE

SDR NO.

TEST NO.

1. (NAME OF HOLDER) INTENDS TO TRANSFER [RECEIVE] SDRS IN ACCORDANCE WITH THE FUND'S DECISION AUTHORIZING USE OF SDRS AS SECURITY FOR THE PERFORMANCE OF A FINANCIAL OBLIGATION.

2. THE OBLIGATION TO BE SECURED IS IN (CURRENCY OR UNIT) AND AMOUNTS TO (AMOUNT OF OBLIGATION). [IF APPLICABLE, ADD DESCRIPTION OF ANY AGREEMENT BY THE PARTIES REGARDING SDRS RECEIVED FROM THE FUND AS INTEREST IN RESPECT TO THE TRANSFERRED SDRS.]

3. THE PARTY [OR OTHER ENTITY] DESIGNATED TO GIVE INSTRUCTIONS TO THE FUND FOR RETRANSFER OF THE SDRS IS (NAME OF THE PARTY) [OR OTHER ENTITY].

4. ACCORDINGLY, PLEASE DEBIT THE SDR ACCOUNT OF (NAME OF TRANSFEROR) WITH SDR (AMOUNT) AND CREDIT THE SAME TO (NAME OF RECIPIENT), VALUE (DATE).

FISCAL AGENCY

(e) Use of SDRs in Swaps

A holder may swap SDRs for an equivalent amount of currency by agreement with another holder and undertake to reverse the exchange of SDRs for currency within an agreed period and at an exchange rate agreed between the two parties. Both parties to this operation must inform the Fund of the amount of SDRs and the period of the swap, the monetary asset, the exchange rate, and the value date for the reversal of the swap. As required by Rule P-7, both parties shall declare that the intended use of SDRs is in accordance with this prescription. This information should be furnished prior to the value date of the initial exchange. Upon completion of the first stage, the party using SDRs must confirm by telex to the Fund that the appropriate amount of currency (or other monetary asset) has been received on the value date specified in the first telex. When the transaction is reversed, the other party must inform the Fund by cable in the same way. Examples are set forth below.

(i) Cable to be sent by both parties at the outset of the operation

SAMPLE

SDR NO.

TEST NO.

1. (NAME OF HOLDER) INTENDS TO SWAP SDR (AMOUNT) WITH (OTHER PARTY) AGAINST (CURRENCY OR UNIT) IN ACCORDANCE WITH THE FUND'S DECISION AUTHORIZING USE OF SDRS IN SWAPS.

2. ON THE BASIS OF THE SDR/(CURRENCY OR UNIT) RATE OF (RATE) ON (DATE, TWO OR THREE BUSINESS DAYS BEFORE VALUE DATE), THIS AMOUNT OF SDRS CORRESPONDS TO (AMOUNT OF CURRENCY OR UNIT).

3. IT IS INTENDED THAT THE SWAP WILL BE REVERSED ON (DATE) ON THE BASIS OF THE SDR/(CURRENCY OR UNIT) RATE OF (RATE). WE SHALL CONFIRM THE REVERSAL AT THAT TIME.

4. IF THE TERMS OF THE ARRANGEMENT ARE MODIFIED IN ANY WAY, WE SHALL NOTIFY THE FUND ACCORDINGLY.

FISCAL AGENCY

(ii) Cable to be sent by user of SDRs upon completion of first stage

SAMPLE

SDR NO.

TEST NO.

REFERENCE SDR SWAP WITH (OTHER PARTY), VALUE (DATE). THIS IS TO CONFIRM THAT WE RECEIVED (AMOUNT OF CURRENCY) FROM (OTHER PARTY), VALUE (DATE). ACCORDINGLY, PLEASE DEBIT OUR SDR ACCOUNT WITH SDR (AMOUNT) AND CREDIT SAME TO ACCOUNT OF (OTHER PARTY), SAME VALUE.

FISCAL AGENCY

(iii) Cable to be sent by other party upon completion of reversal

SAMPLE

SDR NO.

TEST NO.

REFERENCE REVERSAL OF SDR SWAP WITH (NAME OF ORIGINAL PROVIDER). THIS IS TO CONFIRM THAT WE RECEIVED (AMOUNT AND DENOMINATION OF CURRENCY) FROM (NAME), VALUE (DATE) AS PER PARAGRAPH 3 OF OUR CABLE SDR NO. (CABLE NUMBER) [REFERENCE TO ORIGINAL NOTIFICATION]. ACCORDINGLY, PLEASE DEBIT OUR SDR ACCOUNT WITH SDR (AMOUNT) AND CREDIT SAME TO ACCOUNT OF (NAME), SAME VALUE.

FISCAL AGENCY

(f) Use of SDRs in Forward Operations

A holder, by agreement with another holder, may transfer SDRs at an agreed future date in exchange for an agreed amount of currency or other monetary asset. Both parties must inform the Fund of the amount of SDRs and the period of the operation, the monetary asset, the exchange rate, and the value date for the exchange and any subsequent modification of the terms of the operation. As required by Rule P-7, both parties shall declare that the intended use of SDRs is in accordance with this prescription.

(i) Cable to be sent by both parties

SAMPLE

SDR NO.

TEST NO.

1. (NAME OF HOLDER) INTENDS TO TRANSFER [OR ACQUIRE] SDR (AMOUNT) TO [FROM] (OTHER PARTY) IN A FORWARD OPERATION AGAINST (NAME OF CURRENCY), VALUE (DATE), IN ACCORDANCE WITH THE FUND'S DECISION AUTHORIZING USE OF SDRS IN FORWARD OPERATIONS.

2. ON THE BASIS OF THE EXCHANGE RATE AGREED BETWEEN OURSELVES AND (OTHER PARTY), NAMELY (SDR RATE PER UNIT OF CURRENCY), THE (CURRENCY) EQUIVALENT IS (AMOUNT).

3. WE SHALL CONFIRM BY CABLE UPON RECEIPT OF CURRENCY.

FISCAL AGENCY

(ii) Cable to be sent by user of SDRs upon completion

SAMPLE

SDR NO.

TEST NO.

REFERENCE FORWARD OPERATION WITH (NAME). THIS IS TO CONFIRM THAT WE RECEIVED (AMOUNT OF CURRENCY) FROM (NAME), VALUE (DATE). ACCORDINGLY, PLEASE DEBIT OUR SDR ACCOUNT WITH SDR (AMOUNT) AND CREDIT SAME TO SDR ACCOUNT OF (NAME), SAME VALUE.

FISCAL AGENCY

(g) Use of SDRs in Donations

A holder by agreement with another holder may donate or receive SDRs. Both parties shall inform the Fund of the amount of SDRs and the value date for the transfer. As required by Rule P-7, both parties shall declare that the intended use of SDRs is in accordance with this prescription.

SAMPLE

SDR NO.

TEST NO.

1. (NAME OF HOLDER) INTENDS TO DONATE [RECEIVE] SDR (AMOUNT) IN ACCORDANCE WITH THE FUND'S DECISION AUTHORIZING THE USE OF SDRS IN DONATIONS.

2. ACCORDINGLY, PLEASE DEBIT THE SDR ACCOUNT OF (NAME OF DONOR) WITH SDR (AMOUNT) AND CREDIT THE SAME TO (RECIPIENT), VALUE (DATE).

FISCAL AGENCY

3. Transactions and Operations Through General Resources Account

(a) Ad Hoc Authorization for Payment of Charges to General Resources Account

All charges payable to the GRA are normally settled in SDRs in accordance with Article V, Section 8(e). The cable to be received by the Fund should read as follows:

SAMPLE

SDR NO.

TEST NO.

VALUE (DATE), PLEASE DEBIT (PARTICIPANT'S) SDR ACCOUNT WITH SDR (AMOUNT) IN PAYMENT OF (DESCRIBE NATURE OF CHARGE).

FISCAL AGENCY

(b) Standing Authorization for Periodic Charges Only

Participants may give the Fund standing authorization specifically for the payment of periodic charges in SDRs as follows:

SAMPLE

SDR NO.

TEST NO.

UNTIL FURTHER NOTICE, THE FUND IS AUTHORIZED TO DEBIT THE SDR ACCOUNT OF (PARTICIPANT) WITH THE AMOUNT OF PERIODIC CHARGES ON THE DUE DATE, AS NOTIFIED BY THE FUND PROMPTLY AFTER THE END OF THE PERIOD TO WHICH THEY RELATE.

FISCAL AGENCY

(c) Use of SDRs in Repurchases

Repurchases may be made with SDRs in accordance with Article V, Section 7(i). The cable to be received by the Fund from the fiscal agency should read as follows:

SAMPLE

SDR NO.

TEST NO.

VALUE (DATE), PLEASE DEBIT (PARTICIPANT'S) SDR ACCOUNT WITH SDR (AMOUNT) IN DISCHARGE OF REPURCHASE DUE NOT LATER THAN (DATE).

FISCAL AGENCY

or

SAMPLE

SDR NO.

TEST NO.

UNTIL FURTHER NOTICE, THE FUND IS AUTHORIZED TO DEBIT (PARTICIPANT'S) SDR ACCOUNT WITH THE AMOUNTS OF REPURCHASES ON THEIR DUE DATES.

FISCAL AGENCY

(d) Standing Authorization for All Fund Obligations

Participants may provide the Fund with standing authorization to debit their SDR account to discharge all Fund obligations as follows:

SAMPLE

SDR NO.

TEST NO.

UNTIL FURTHER NOTICE, THE FUND IS AUTHORIZED TO DEBIT (PARTICIPANT'S) SDR ACCOUNT WITH ALL THE AMOUNTS OF FINANCIAL OBLIGATIONS AS THEY FALL DUE TO THE FUND.

FISCAL AGENCY

In all sample cables, parentheses are used to indicate where relevant entries must be made, whereas square brackets indicate that an alternative entry may be appropriate or that helpful information is enclosed.

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