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IMF History (1966-1971) Volume 2
Chapter

Articles of Agreement of the International Monetary Fund (July 28, 1969)

Author(s):
International Monetary Fund
Published Date:
February 1996
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The Governments on whose behalf the present Agreement is signed agree as follows:

Introductory Article

  • (i) The International Monetary Fund is established and shall operate in accordance with the provisions of this Agreement as originally adopted, and as subsequently amended in order to institute a facility based on special drawing rights and to effect certain other changes.

  • (ii) To enable the Fund to conduct its operations and transactions, the Fund shall maintain a General Account and a Special Drawing Account. Membership in the Fund shall give the right to participation in the Special Drawing Account.

  • (iii) Operations and transactions authorized by this Agreement shall be conducted through the General Account except that operations and transactions involving special drawing rights shall be conducted through the Special Drawing Account.

Article I Purposes

The purposes of the International Monetary Fund are:

  • (i) To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems.

  • (ii) To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.

  • (iii) To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.

  • (iv) To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade.

  • (v) To give confidence to members by making the Fund’s resources temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.

  • (vi) In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.

The Fund shall be guided in all its policies and decisions by the purposes set forth in this Article.

Article II Membership

Section 1. Original members

The original members of the Fund shall be those of the countries represented at the United Nations Monetary and Financial Conference whose governments accept membership before the date specified in Article XX, Section 2 (e).

Section 2. Other members

Membership shall be open to the governments of other countries at such times and in accordance with such terms as may be prescribed by the Fund.

Article III Quotas and Subscriptions

Section 1. Quotas

Each member shall be assigned a quota. The quotas of the members represented at the United Nations Monetary and Financial Conference which accept membership before the date specified in Article XX, Section 2 (e), shall be those set forth in Schedule A. The quotas of other members shall be determined by the Fund.

Section 2. Adjustment of quotas

The Fund shall at intervals of not more than five years conduct a general review, and if it deems it appropriate propose an adjustment, of the quotas of the members. It may also, if it thinks fit, consider at any other time the adjustment of any particular quota at the request of the member concerned. An eighty-five percent majority of the total voting power shall be required for any change in quotas proposed as the result of a general review and a four-fifths majority of the total voting power shall be required for any other change in quotas. No quota shall be changed without the consent of the member concerned.

Section 3. Subscriptions: time, place, and form of payment

(a) The subscription of each member shall be equal to its quota and shall be paid in full to the Fund at the appropriate depository on or before the date when the member becomes eligible under Article XX, Section 4 (c) or (d), to buy currencies from the Fund.

(b) Each member shall pay in gold, as a minimum, the smaller of

  • (i) twenty-five percent of its quota; or

  • (ii) ten percent of its net official holdings of gold and United States dollars as at the date when the Fund notifies members under Article XX, Section 4 (a) that it will shortly be in a position to begin exchange transactions.

Each member shall furnish to the Fund the data necessary to determine its net official holdings of gold and United States dollars.

(c) Each member shall pay the balance of its quota in its own currency.

(d) If the net official holdings of gold and United States dollars of any member as at the date referred to in (b) (ii) above are not ascertainable because its territories have been occupied by the enemy, the Fund shall fix an appropriate alternative date for determining such holdings. If such date is later than that on which the country becomes eligible under Article XX, Section 4 (c) or (d), to buy currencies from the Fund, the Fund and the member shall agree on a provisional gold payment to be made under (b) above, and the balance of the member’s subscription shall be paid in the member’s currency, subject to appropriate adjustment between the member and the Fund when the net official holdings have been ascertained.

Section 4. Payments when quotas are changed

(a) Each member which consents to an increase in its quota shall, within thirty days after the date of its consent, pay to the Fund twenty-five percent of the increase in gold and the balance in its own currency. If, however, on the date when the member consents to an increase, its monetary reserves are less than its new quota, the Fund may reduce the proportion of the increase to be paid in gold.

(b) If a member consents to a reduction in its quota, the Fund shall, within thirty days after the date of the consent, pay to the member an amount equal to the reduction. The payment shall be made in the member’s currency and in such amount of gold as may be necessary to prevent reducing the Fund’s holdings of the currency below seventy-five percent of the new quota.

(c) A majority of eighty-five percent of the total voting power shall be required for any decisions dealing with the payment, or made with the sole purpose of mitigating the effects of the payment, of increases in quotas proposed as the result of a general review of quotas.

Section 5. Substitution of securities for currency

The Fund shall accept from any member in place of any part of the member’s currency which in the judgment of the Fund is not needed for its operations, notes or similar obligations issues by the member or the depository designated by the member under Article XIII, Section 2, which shall be non-negotiable, non-interest bearing and payable at their par value on demand by crediting the account of the Fund in the designated depository. This Section shall apply not only to currency subscribed by members but also to any currency otherwise due to, or acquired by, the Fund.

Article IV Par Values of Currencies

Section 1. Expression of par values

(a) The par value of the currency of each member shall be expressed in terms of gold as a common denominator or in terms of the United States dollar of the weight and fineness in effect on July 1, 1944.

(b) All computations relating to currencies of members for the purpose of applying the provisions of this Agreement shall be on the basis of their par values.

Section 2. Gold purchases based on par values

The Fund shall prescribe a margin above and below par value for transactions in gold by members, and no member shall buy gold at a price above par value plus the prescribed margin, or sell gold at a price below par value minus the prescribed margin.

Section 3. Foreign exchange dealings based on parity

The maximum and the minimum rates for exchange transactions between the currencies of members taking place within their territories shall not differ from parity

  • (i) in the case of spot exchange transactions, by more than one percent; and

  • (ii) in the case of other exchange transactions, by a margin which exceeds the margin for spot exchange transactions by more than the Fund considers reasonable.

Section 4. Obligations regarding exchange stability

(a) Each member undertakes to collaborate with the Fund to promote exchange stability, to maintain orderly exchange arrangements with other members, and to avoid competitive exchange alterations.

(b) Each member undertakes, through appropriate measures consistent with this Agreement, to permit within its territories exchange transactions between its currency and the currencies of other members only within the limits prescribed under Section 3 of this Article. A member whose monetary authorities, for the settlement of international transactions, in fact freely buy and sell gold within the limits prescribed by the Fund under Section 2 of this Article shall be deemed to be fulfilling this undertaking.

Section 5. Changes in par values

(a) A member shall not propose a change in the par value of its currency except to correct a fundamental disequilibrium.

(b) A change in the par value of a member’s currency may be made only on the proposal of the member and only after consultation with the Fund.

(c) When a change is proposed, the Fund shall first take into account the changes, if any, which have already taken place in the initial par value of the member’s currency as determined under Article XX, Section 4. If the proposed change, together with all previous changes, whether increases or decreases,

  • (i) does not exceed ten percent of the initial par value, the Fund shall raise no objection,

  • (ii) does not exceed a further ten percent of the initial par value, the Fund may either concur or object, but shall declare its attitude within seventy-two hours if the member so requests,

  • (iii) is not within (i) or (ii) above, the Fund may either concur or object, but shall be entitled to a longer period in which to declare its attitude.

(d) Uniform changes in par values made under Section 7 of this Article shall not be taken into account in determining whether a proposed change falls within (i), (ii), or (iii) of (c) above.

(e) A member may change the par value of its currency without the concurrence of the Fund if the change does not affect the international transactions of members of the Fund.

(f) The Fund shall concur in a proposed change which is within the terms of (c) (ii) or (c) (iii) above if it is satisfied that the change is necessary to correct a fundamental disequilibrium. In particular, provided it is so satisfied, it shall not object to a proposed change because of the domestic social or political policies of the member proposing the change.

Section 6. Effect of unauthorized changes

If a member changes the par value of its currency despite the objection of the Fund, in cases where the Fund is entitled to object, the member shall be ineligible to use the resources of the Fund unless the Fund otherwise determines; and if, after the expiration of a reasonable period, the difference between the member and the Fund continues, the matter shall be subject to the provisions of Article XV, Section 2 (b).

Section 7. Uniform changes in par values

Notwithstanding the provisions of Section 5 (b) of this Article, the Fund by an eighty-five percent majority of the total voting power may make uniform proportionate changes in the par values of the currencies of all members. The par value of a member’s currency shall, however, not be changed under this provision if, within seventy-two hours of the Fund’s action, the member informs the Fund that it does not wish the par value of its currency to be changed by such action.

Section 8. Maintenance of gold value of the Fund’s assets

(a) The gold value of the Fund’s assets shall be maintained notwithstanding changes in the par or foreign exchange value of the currency of any member.

(b) Whenever (i) the par value of a member’s currency is reduced, or (ii) the foreign exchange value of a member’s currency has, in the opinion of the Fund, depreciated to a significant extent within that member’s territories, the member shall pay to the Fund within a reasonable time an amount of its own currency equal to the reduction in the gold value of its currency held by the Fund.

(c) Whenever the par value of a member’s currency is increased, the Fund shall return to such member within a reasonable time an amount in its currency equal to the increase in the gold value of its currency held by the Fund.

(d) The provisions of this Section shall apply to a uniform proportionate change in the par values of the currencies of all members, unless at the time when such a change is made the Fund decides otherwise by an eighty-five percent majority of the total voting power.

Section 9. Separate currencies within a member’s territories

A member proposing a change in the par value of its currency shall be deemed, unless it declares otherwise, to be proposing a corresponding change in the par value of the separate currencies of all territories in respect of which it has accepted this Agreement under Article XX, Section 2 (g). It shall, however, be open to a member to declare that its proposal relates either to the metropolitan currency alone, or only to one or more specified separate currencies, or to the metropolitan currency and one or more specified separate currencies.

Article V Transactions with the Fund

Section 1. Agencies dealing with the Fund

Each member shall deal with the Fund only through its Treasury, central bank, stabilization fund or other similar fiscal agency and the Fund shall deal only with or through the same agencies.

Section 2. Limitation on the Fund’s operations

Except as otherwise provided in this Agreement, operations on the account of the Fund shall be limited to transactions for the purpose of supplying a member, on the initiative of such member, with the currency of another member in exchange for gold or for the currency of the member desiring to make the purchase.

Section 3. Conditions governing use of the Fund’s resources

(a) A member shall be entitled to buy the currency of another member from the Fund in exchange for its own currency subject to the following conditions:

  • (i) The member desiring to purchase the currency represents that it is presently needed for making in that currency payments which are consistent with the provisions of this Agreement;

  • (ii) The Fund has not given notice under Article VII, Section 3, that its holdings of the currency desired have become scarce;

  • (iii) The proposed purchase would be a gold tranche purchase, or would not cause the Fund’s holdings of the purchasing member’s currency to increase by more than twenty-five percent of its quota during the period of twelve months ending on the date of the purchase or to exceed two hundred percent of its quota;

  • (iv) The Fund has not previously declared under Section 5 of this Article, Article IV, Section 6, Article VI, Section 1, or Article XV, Section 2 (a), that the member desiring to purchase is ineligible to use the resources of the Fund.

(b) A member shall not be entitled without the permission of the Fund to use the Fund’s resources to acquire currency to hold against forward exchange transactions.

(c) A member’s use of the resources of the Fund shall be in accordance with the purposes of the Fund. The Fund shall adopt policies on the use of its resources that will assist members to solve their balance of payments problems in a manner consistent with the purposes of the Fund and that will establish adequate safeguards for the temporary use of its resources.

(d) A representation by a member under (a) above shall be examined by the Fund to determine whether the proposed purchase would be consistent with the provisions of this Agreement and with the policies adopted under them, with the exception that proposed gold tranche purchases shall not be subject to challenge.

Section 4. Waiver of conditions

The Fund may in its discretion, and on terms which safeguard its interests, waive any of the conditions prescribed in Section 3 (a) of this Article, especially in the case of members with a record of avoiding large or continuous use of the Fund’s resources. In making a waiver it shall take into consideration periodic or exceptional requirements of the member requesting the waiver. The Fund shall also take into consideration a member’s willingness to pledge as collateral security gold, silver, securities, or other acceptable assets having a value sufficient in the opinion of the Fund to protect its interests and may require as a condition of waiver the pledge of such collateral security.

Section 5. Ineligibility to use the Fund’s resources

Whenever the Fund is of the opinion that any member is using the resources of the Fund in a manner contrary to the purposes of the Fund, it shall present to the member a report setting forth the views of the Fund and prescribing a suitable time for reply. After presenting such a report to a member, the Fund may limit the use of its resources by the member. If no reply to the report is received from the member within the prescribed time, or if the reply received is unsatisfactory, the Fund may continue to limit the member’s use of the Fund’s resources or may, after giving reasonable notice to the member, declare it ineligible to use the resources of the Fund.

Section 6. Purchases of currencies from the Fund for gold

(a) Any member desiring to obtain, directly or indirectly, the currency of another member for gold shall, provided that it can do so with equal advantage, acquire it by the sale of gold to the Fund.

(b) Nothing in this Section shall be deemed to preclude any member from selling in any market gold newly produced from mines located within its territories.

Section 7. Repurchase by a member of its currency held by the Fund

(a) A member may repurchase from the Fund and the Fund shall sell for gold any part of the Fund’s holdings of its currency in excess of its quota.

(b) At the end of each financial year of the Fund, a member shall repurchase from the Fund with each type of monetary reserve, as determined in accordance with Schedule B, part of the Fund’s holdings of its currency under the following conditions:

  • (i) Each member shall use in repurchases of its own currency from the Fund an amount of its monetary reserves equal in value to the following changes that have occurred during the year: one-half of any increase in the Fund’s holdings of the member’s currency, plus one-half of any increase, or minus one-half of any decrease, in the member’s monetary reserves, or, if the Fund’s holdings of the member’s currency have decreased, one-half of any increase in the member’s monetary reserves minus one-half of the decrease in the Fund’s holdings of the member’s currency. This rule shall not apply when a member’s monetary reserves have decreased during the year by more than the Fund’s holdings of its currency have increased.

  • (ii) If after the repurchase described in (i) above (if required) has been made, a member’s holdings of another member’s currency (or of gold acquired from that member) are found to have increased by reason of transactions in terms of that currency with other members or persons in their territories, the member whose holdings of such currency (or gold) have thus increased shall use the increase to repurchase its own currency from the Fund.

(c) None of the adjustments described in (b) above shall be carried to a point at which

  • (i) the member’s monetary reserves are below one hundred fifty percent of its quota, or

  • (ii) the Fund’s holdings of its currency are below seventy-five percent of its quota, or

  • (iii) the Fund’s holdings of any currency required to be used are above seventy-five percent of the quota of the member concerned, or

  • (iv) the amount repurchased exceeds twenty-five percent of the quota of the member concerned.

(d) The Fund by an eighty-five percent majority of the total voting power may revise the percentages in (c) (i) and (iv) above and revise and supplement the rules in paragraph 1 (c), (d), and (e) and paragraph 2 (b) of Schedule B.

Section 8. Charges

(a) Any member buying the currency of another member from the Fund in exchange for its own currency shall pay, in addition to the parity price, a service charge uniform for all members of not less than one-half percent and not more than one percent, as determined by the Fund, provided that the Fund in its discretion may levy a service charge of less than one-half percent on gold tranche purchases.

(b) The Fund may levy a reasonable handling charge on any member buying gold from the Fund or selling gold to the Fund.

(c) The Fund shall levy charges uniform for all members which shall be payable by any member on the average daily balances of its currency held by the Fund in excess of its quota. These charges shall be at the following rates:

  • (i) On amounts not more than twenty-five percent in excess of the quota: no charge for the first three months; one-half percent per annum for the next nine months; and thereafter an increase in the charge of one-half percent for each subsequent year.

  • (ii) On amounts more than twenty-five percent and not more than fifty percent in excess of the quota: an additional one-half percent for the first year; and an additional one-half percent for each subsequent year.

  • (iii) On each additional bracket of twenty-five percent in excess of the quota: an additional one-half percent for the first year; and an additional one-half percent for each subsequent year.

(d) Whenever the Fund’s holdings of a member’s currency are such that the charge applicable to any bracket for any period has reached the rate of four percent per annum, the Fund and the member shall consider means by which the Fund’s holdings of the currency can be reduced. Thereafter, the charges shall rise in accordance with the provisions of (c) above until they reach five percent and failing agreement, the Fund may then impose such charges as it deems appropriate.

(e) The rates referred to in (c) and (d) above may be changed by a three-fourths majority of the total voting power.

(f) All charges shall be paid in gold. If, however, the member’s monetary reserves are less than one-half of its quota, it shall pay in gold only that proportion of the charges due which such reserves bear to one-half of its quota, and shall pay the balance in its own currency.

Section 9. Remuneration

(a) The Fund shall pay remuneration, at a rate uniform for all members, on the amount by which seventy-five percent of a member’s quota exceeded the average of the Fund’s holdings of the member’s currency, provided that no account shall be taken of holdings in excess of seventy-five percent of quota. The rate shall be one and one-half percent per annum, but the Fund in its discretion may increase or reduce this rate, provided that a three-fourths majority of the total voting power shall be required for any increase above two percent per annum or reduction below one percent per annum.

(b) Remuneration shall be paid in gold or a member’s own currency as determined by the Fund.

Article VI Capital Transfers

Section 1. Use of the Fund’s resources for capital transfers

(a) A member may not use the Fund’s resources to meet a large or sustained outflow of capital except as provided in Section 2 of this Article, and the Fund may request a member to exercise controls to prevent such use of the resources of the Fund. If, after receiving such a request, a member fails to exercise appropriate controls, the Fund may declare the member ineligible to use the resources of the Fund.

(b) Nothing in this Section shall be deemed

  • (i) to prevent the use of the resources of the Fund for capital transactions of reasonable amount required for the expansion of exports or in the ordinary course of trade, banking or other business, or

  • (ii) to affect capital movements which are met out of a member’s own resources of gold and foreign exchange, but members undertake that such capital movements will be in accordance with the purposes of the Fund.

Section 2. Special provisions for capital transfers

A member shall be entitled to make gold tranche purchases to meet capital transfers.

Section 3. Controls of capital transfers

Members may exercise such controls as are necessary to regulate international capital movements, but no member may exercise these controls in a manner which will restrict payments for current transactions or which will unduly delay transfers of funds in settlement of commitments, except as provided in Article VII, Section 3 (b), and in Article XIV, Section 2.

Article VII Scarce Currencies

Section 1. General scarcity of currency

If the Fund finds that a general scarcity of a particular currency is developing, the Fund may so inform members and may issue a report setting forth the causes of the scarcity and containing recommendations designed to bring it to an end. A representative of the member whose currency is involved shall participate in the preparation of the report.

Section 2. Measures to replenish the Fund’s holdings of scarce currencies

The Fund may, if it deems such action appropriate to replenish its holdings of any member’s currency, take either or both of the following steps:

  • (i) Propose to the member that, on terms and conditions agreed between the Fund and the member, the latter lend its currency to the Fund or that, with the approval of the member, the Fund borrow such currency from some other source either within or outside the territories of the member, but no member shall be under any obligation to make such loans to the Fund or to approve the borrowing of its currency by the Fund from any other source.

  • (ii) Require the member to sell its currency to the Fund for gold.

Section 3. Scarcity of the Fund’s holdings

(a) If it becomes evident to the Fund that the demand for a member’s currency seriously threatens the Fund’s ability to supply that currency, the Fund, whether or not it has issued a report under Section 1 of this Article, shall formally declare such currency scarce and shall thenceforth apportion its existing and accruing supply of the scarce currency with due regard to the relative needs of members, the general international economic situation and any other pertinent considerations. The Fund shall also issue a report concerning its action.

(b) A formal declaration under (a) above shall operate as an authorization to any member, after consultation with the Fund, temporarily to impose limitations on the freedom of exchange operations in the scarce currency. Subject to the provisions of Article IV, Sections 3 and 4, the member shall have complete jurisdiction in determining the nature of such limitations, but they shall be no more restrictive than is necessary to limit the demand for the scarce currency to the supply held by, or accruing to, the member in question; and they shall be relaxed and removed as rapidly as conditions permit.

(c) The authorization under (b) above shall expire whenever the Fund formally declares the currency in question to be no longer scarce.

Section 4. Administration of restrictions

Any member imposing restrictions in respect of the currency of any other member pursuant to the provisions of Section 3 (b) of this Article shall give sympathetic consideration to any representations by the other member regarding the administration of such restrictions.

Section 5. Effect of other international agreements on restrictions

Members agree not to invoke the obligations of any engagements entered into with other members prior to this Agreement in such a manner as will prevent the operation of the provisions of this Article.

Article VIII General Obligations of Members

Section 1. Introduction

In addition to the obligations assumed under other articles of this Agreement, each member undertakes the obligations set out in this Article.

Section 2. Avoidance of restrictions on current payments

(a) Subject to the provisions of Article VII, Section 3 (b), and Article XIV, Section 2, no member shall, without the approval of the Fund, impose restrictions on the making of payments and transfers for current international transactions.

(b) Exchange contracts which involve the currency of any member and which are contrary to the exchange control regulations of that member maintained or imposed consistently with this Agreement shall be unenforceable in the territories of any member. In addition, members may, by mutual accord, cooperate in measures for the purpose of making the exchange control regulations of either member more effective, provided that such measures and regulations are consistent with this Agreement.

Section 3. Avoidance of discriminatory currency practices

No member shall engage in, or permit any of its fiscal agencies referred to in Article V, Section 1, to engage in, any discriminatory currency arrangements or multiple currency practices except as authorized under this Agreement or approved by the Fund. If such arrangements and practices are engaged in at the date when this Agreement enters into force the member concerned shall consult with the Fund as to their progressive removal unless they are maintained or imposed under Article XIV, Section 2, in which case the provisions of Section 4 of that Article shall apply.

Section 4. Convertibility of foreign held balances

(a) Each member shall buy balances of its currency held by another member if the latter, in requesting the purchase, represents

  • (i) that the balances to be bought have been recently acquired as a result of current transactions; or

  • (ii) that their conversion is needed for making payments for current transactions.

The buying member shall have the option to pay either in the currency of the member making the request or in gold.

(b) The obligation in (a) above shall not apply

  • (i) when the convertibility of the balances has been restricted consistently with Section 2 of this Article, or Article VI, Section 3; or

  • (ii) when the balances have accumulated as a result of transactions effected before the removal by a member of restrictions maintained or imposed under Article XIV, Section 2; or

  • (iii) when the balances have been acquired contrary to the exchange regulations of the member which is asked to buy them; or

  • (iv) when the currency of the member requesting the purchase has been declared scarce under Article VII, Section 3 (a); or

  • (v) when the member requested to make the purchase is for any reason not entitled to buy currencies of other members from the Fund for its own currency.

Section 5. Furnishing of information

(a) The Fund may require members to furnish it with such information as it deems necessary for its operations, including, as the minimum necessary for the effective discharge of the Fund’s duties, national data on the following matters:

  • (i) Official holdings at home and abroad, of (1) gold, (2) foreign exchange.

  • (ii) Holdings at home and abroad by banking and financial agencies, other than official agencies, of (1) gold, (2) foreign exchange.

  • (iii) Production of gold.

  • (iv) Gold exports and imports according to countries of destination and origin.

  • (v) Total exports and imports of merchandise, in terms of local currency values, according to countries of destination and origin.

  • (vi) International balance of payments, including (1) trade in goods and services, (2) gold transactions, (3) known capital transactions, and (4) other items.

  • (vii) International investment position, i.e., investments within the territories of the member owned abroad and investments abroad owned by persons in its territories so far as it is possible to furnish this information.

  • (viii) National income.

  • (ix) Price indices, i.e., indices of commodity prices in wholesale and retail markets and of export and import prices.

  • (x) Buying and selling rates for foreign currencies.

  • (xi) Exchange controls, i.e., a comprehensive statement of exchange controls in effect at the time of assuming membership in the Fund and details of subsequent changes as they occur.

  • (xii) Where official clearing arrangements exist, details of amounts awaiting clearance in respect of commercial and financial transactions, and of the length of time during which such arrears have been outstanding.

(b) In requesting information the Fund shall take into consideration the varying ability of members to furnish the data requested. Members shall be under no obligation to furnish information in such detail that the affairs of individuals or corporations are disclosed. Members undertake, however, to furnish the desired information in as detailed and accurate a manner as is practicable, and, so far as possible, to avoid mere estimates.

(c) The Fund may arrange to obtain further information by agreement with members. It shall act as a centre for the collection and exchange of information on monetary and financial problems, thus facilitating the preparation of studies designed to assist members in developing policies which further the purposes of the Fund.

Section 6. Consultation between members regarding existing international agreements

Where under this Agreement a member is authorized in the special or temporary circumstances specified in the Agreement to maintain or establish restrictions on exchange transactions, and there are other engagements between members entered into prior to this Agreement which conflict with the application of such restrictions, the parties to such engagements will consult with one another with a view to making such mutually acceptable adjustments as may be necessary. The provisions of this Article shall be without prejudice to the operation of Article VII, Section 5.

Article IX Status, Immunities and Privileges

Section 1. Purposes of Article

To enable the Fund to fulfill the functions with which it is entrusted, the status, immunities and privileges set forth in this Article shall be accorded to the Fund in the territories of each member.

Section 2. Status of the Fund

The Fund shall possess full juridical personality, and, in particular, the capacity:

  • (i) to contract;

  • (ii) to acquire and dispose of immovable and movable property;

  • (iii) to institute legal proceedings.

Section 3. Immunity from judicial process

The Fund, its property and its assets, wherever located and by whomsoever held, shall enjoy immunity from every form of judicial process except to the extent that it expressly waives its immunity for the purpose of any proceedings or by the terms of any contract.

Section 4. Immunity from other action

Property and assets of the Fund, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action.

Section 5. Immunity of archives

The archives of the Fund shall be inviolable.

Section 6. Freedom of assets from restrictions

To the extent necessary to carry out the operations provided for in this Agreement, all property and assets of the Fund shall be free from restrictions, regulations, controls and moratoria of any nature.

Section 7. Privilege for communications

The official communications of the Fund shall be accorded by members the same treatment as the official communications of other members.

Section 8. Immunities and privileges of officers and employees

All governors, executive directors, alternates, officers and employees of the Fund

  • (i) shall be immune from legal process with respect to acts performed by them in their official capacity except when the Fund waives this immunity.

  • (ii) not being local nationals, shall be granted the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members.

  • (iii) shall be granted the same treatment in respect of traveling facilities as is accorded by members to representatives, officials and employees of comparable rank of other members.

Section 9. Immunities from taxation

(a) The Fund, its assets, property, income and its operations and transactions authorized by this Agreement, shall be immune from all taxation and from all customs duties. The Fund shall also be immune from liability for the collection or payment of any tax or duty.

(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Fund to executive directors, alternates, officers or employees of the Fund who are not local citizens, local subjects, or other local nationals.

(c) No taxation of any kind shall be levied on any obligation or security issued by the Fund, including any dividend or interest thereon, by whomsoever held

  • (i) which discriminates against such obligation or security solely because of its origin; or

  • (ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Fund.

Section 10. Application of Article

Each member shall take such action as is necessary in its own territories for the purpose of making effective in terms of its own law the principles set forth in this Article and shall inform the Fund of the detailed action which it has taken.

Article X Relations with Other International Organizations

The Fund shall cooperate within the terms of this Agreement with any general international organization and with public international organizations having specialized responsibilities in related fields. Any arrangements for such cooperation which would involve a modification of any provision of this Agreement may be effected only after amendment of this Agreement under Article XVII.

Article XI Relations with Non-Member Countries

Section 1. Undertakings regarding relations with non-member countries

Each member undertakes:

  • (i) Not to engage in, nor to permit any of its fiscal agencies referred to in Article V, Section 1, to engage in, any transactions with a non-member or with persons in a non-member’s territories which would be contrary to the provisions of this Agreement or the purposes of the Fund;

  • (ii) Not to cooperate with a non-member or with persons in a non-member’s territories in practices which would be contrary to the provisions of this Agreement or the purposes of the Fund; and

  • (iii) To cooperate with the Fund with a view to the application in its territories of appropriate measures to prevent transactions with non-members or with persons in their territories which would be contrary to the provisions of this Agreement or the purposes of the Fund.

Section 2. Restrictions on transactions with non-member countries

Nothing in this Agreement shall affect the right of any member to impose restrictions on exchange transactions with non-members or with persons in their territories unless the Fund finds that such restrictions prejudice the interests of members and are contrary to the purposes of the Fund.

Article XII Organization and Management

Section 1. Structure of the Fund

The Fund shall have a Board of Governors, Executive Directors, a Managing Director and a staff.

Section 2. Board of Governors

(a) All powers of the Fund shall be vested in the Board of Governors, consisting of one governor and one alternate appointed by each member in such manner as it may determine. Each governor and each alternate shall serve for five years, subject to the pleasure of the member appointing him, and may be reappointed. No alternate may vote except in the absence of his principal. The Board shall select one of the governors as chairman.

(b) The Board of Governors may delegate to the Executive Directors authority to exercise any powers of the Board, except the power to:

  • (i) Admit new members and determine the conditions of their admission.

  • (ii) Approve a revision of quotas, or to decide on the payment, or on the mitigation of the effects of payment, of increases in quotas proposed as the result of a general review of quotas.

  • (iii) Approve a uniform change in the par values of the currencies of all members, or to decide when such a change is made that the provisions relating to the maintenance of gold value of the Fund’s assets shall not apply.

  • (iv) Make arrangements to cooperate with other international organizations (other than informal arrangements of a temporary or administrative character).

  • (v) Determine the distribution of the net income of the Fund.

  • (vi) Require a member to withdraw.

  • (vii) Decide to liquidate the Fund.

  • (viii) Decide appeals from interpretations of this Agreement given by the Executive Directors.

  • (ix) Revise the provisions on repurchase or to revise and supplement the rules for the distribution of repurchases among types of reserves.

  • (x) Make transfers to general reserve from any special reserve.

(c) The Board of Governors shall hold an annual meeting and such other meetings as may be provided for by the Board or called by the Executive Directors. Meetings of the Board shall be called by the Directors whenever requested by five members or by members having one quarter of the total voting power.

(d) A quorum for any meeting of the Board of Governors shall be a majority of the governors exercising not less than two-thirds of the total voting power.

(e) Each governor shall be entitled to cast the number of votes allotted under Section 5 of this Article to the member appointing him.

(f) The Board of Governors may by regulation establish a procedure whereby the Executive Directors, when they deem such action to be in the best interests of the Fund, may obtain a vote of the governors on a specific question without calling a meeting of the Board.

(g) The Board of Governors, and the Executive Directors to the extent authorized, may adopt such rules and regulations as may be necessary or appropriate to conduct the business of the Fund.

(h) Governors and alternates shall serve as such without compensation from the Fund, but the Fund shall pay them reasonable expenses incurred in attending meetings.

(i) The Board of Governors shall determine the remuneration to be paid to the Executive Directors and the salary and terms of the contract of service of the Managing Director.

Section 3. Executive Directors

(a) The Executive Directors shall be responsible for the conduct of the general operations of the Fund, and for this purpose shall exercise all the powers delegated to them by the Board of Governors.

(b) There shall be not less than twelve directors who need not be governors, and of whom

  • (i) Five shall be appointed by the five members having the largest quotas;

  • (ii) Not more than two shall be appointed when the provisions of (c) below apply;

  • (iii) Five shall be elected by the members not entitled to appoint directors, other than the American Republics; and

  • (iv) Two shall be elected by the American Republics not entitled to appoint directors.

For the purposes of this paragraph, members means governments of countries whose names are set forth in Schedule A, whether they become members in accordance with Article XX or in accordance with Article II, Section 2. When governments of other countries become members, the Board of Governors may, by a four-fifths majority of the total voting power, increase the number of directors to be elected.

(c) If, at the second regular election of directors and thereafter, the members entitled to appoint directors under (b) (i) above do not include the two members, the holdings of whose currencies by the Fund have been, on the average over the preceding two years, reduced below their quotas by the largest absolute amounts in terms of gold as a common denominator, either one or both of such members, as the case may be, shall be entitled to appoint a director.

(d) Subject to Article XX, Section 3 (b) elections of elective directors shall be conducted at intervals of two years in accordance with the provisions of Schedule C, supplemented by such regulations as the Fund deems appropriate. Whenever the Board of Governors increases the number of directors to be elected under (b) above, it shall issue regulations making appropriate changes in the proportion of votes required to elect directors under the provisions of Schedule C.

(e) Each director shall appoint an alternate with full power to act for him when he is not present. When the directors appointing them are present, alternates may participate in meetings but may not vote.

(f) Directors shall continue in office until their successors are appointed or elected. If the office of an elected director becomes vacant more than ninety days before the end of his term, another director shall be elected for the remainder of the term by the members who elected the former director. A majority of the votes cast shall be required for election. While the office remains vacant, the alternate of the former director shall exercise his powers, except that of appointing an alternate.

(g) The Executive Directors shall function in continuous session at the principal office of the Fund and shall meet as often as the business of the Fund may require.

(h) A quorum for any meeting of the Executive Directors shall be a majority of the directors representing not less than one-half of the voting power.

(i) Each appointed director shall be entitled to cast the number of votes allotted under Section 5 of this Article to the member appointing him. Each elected director shall be entitled to cast the number of votes which counted towards his election. When the provisions of Section 5 (b) of this Article are applicable, the votes which a director would otherwise be entitled to cast shall be increased or decreased correspondingly. All the votes which a director is entitled to cast shall be cast as a unit.

(j) The Board of Governors shall adopt regulations under which a member not entitled to appoint a director under (b) above may send a representative to attend any meeting of the Executive Directors when a request made by, or a matter particularly affecting, that member is under consideration.

(k) The Executive Directors may appoint such committees as they deem advisable. Membership of committees need not be limited to governors or directors or their alternates.

Section 4. Managing Director and staff

(a) The Executive Directors shall select a Managing Director who shall not be a governor or an executive director. The Managing Director shall be chairman of the Executive Directors, but shall have no vote except a deciding vote in case of an equal division. He may participate in meetings of the Board of Governors, but shall not vote at such meetings. The Managing Director shall cease to hold office when the Executive Directors so decide.

(b) The Managing Director shall be chief of the operating staff of the Fund and shall conduct, under the direction of the Executive Directors, the ordinary business of the Fund. Subject to the general control of the Executive Directors, he shall be responsible for the organization, appointment and dismissal of the staff of the Fund.

(c) The Managing Director and the staff of the Fund, in the discharge of their functions, shall owe their duty entirely to the Fund and to no other authority. Each member of the Fund shall respect the international character of this duty and shall refrain from all attempts to influence any of the staff in the discharge of his functions.

(d) In appointing the staff the Managing Director shall, subject to the paramount importance of securing the highest standards of efficiency and of technical competence, pay due regard to the importance of recruiting personnel on as wide a geographical basis as possible.

Section 5. Voting

(a) Each member shall have two hundred fifty votes plus one additional vote for each part of its quota equivalent to one hundred thousand United States dollars.

(b) Whenever voting is required under Article V, Section 4 or 5, each member shall have the number of votes to which it is entitled under (a) above, adjusted:

  • (i) by the addition of one vote for the equivalent of each four hundred thousand United States dollars of net sales of its currency up to the date when the vote is taken, or

  • (ii) by the subtraction of one vote for the equivalent of each four hundred thousand United States dollars of its net purchases of the currencies of other members up to the date when the vote is taken

provided, that neither net purchases nor net sales shall be deemed at any time to exceed an amount equal to the quota of the member involved.

(c) For the purpose of all computations under this Section, United States dollars shall be deemed to be of the weight and fineness in effect on July 1, 1944, adjusted for any uniform change under Article IV, Section 7, if a waiver is made under Section 8 (d) of that Article.

(d) Except as otherwise specifically provided, all decisions of the Fund shall be made by a majority of the votes cast.

Section 6. Reserves and distribution of net income

(a) The Board of Governors shall determine annually what part of the Fund’s net income shall be placed to reserve and what part, if any, shall be distributed.

(b) If any distribution is made of the net income of any year, there shall first be distributed to members eligible to receive remuneration under Article V, Section 9, for that year an amount by which two percent per annum exceeded any remuneration that has been paid for that year. Any distribution of the net income of that year beyond that amount shall be made to all members in proportion to their quotas. Payments to each member shall be made in its own currency.

(c) The Fund may make transfers to general reserve from any special reserve.

Section 7. Publication of reports

(a) The Fund shall publish an annual report containing an audited statement of its accounts, and shall issue, at intervals of three months or less, a summary statement of its transactions and its holdings of gold and currencies of members.

(b) The Fund may publish such other reports as it deems desirable for carrying out its purposes.

Section 8. Communication of views to members

The Fund shall at all times have the right to communicate its views informally to any member on any matter arising under this Agreement. The Fund may, by a two-thirds majority of the total voting power, decide to publish a report made to a member regarding its monetary or economic conditions and developments which directly tend to produce a serious disequilibrium in the international balance of payments of members. If the member is not entitled to appoint an executive director, it shall be entitled to representation in accordance with Section 3(j) of this Article. The Fund shall not publish a report involving changes in the fundamental structure of the economic organization of members.

Article XIII Offices and Depositories

Section 1. Location of offices

The principal office of the Fund shall be located in the territory of the member having the largest quota, and agencies or branch offices may be established in the territories of other members.

Section 2. Depositories

(a) Each member country shall designate its central bank as a depository for all the Fund’s holdings of its currency, or if it has no central bank it shall designate such other institution as may be acceptable to the Fund.

(b) The Fund may hold other assets, including gold, in the depositories designated by the five members having the largest quotas and in such other designated depositories as the Fund may select. Initially, at least one-half of the holdings of the Fund shall be held in the depository designated by the member in whose territories the Fund has its principal office and at least forty percent shall be held in the depositories designated by the remaining four members referred to above. However, all transfers of gold by the Fund shall be made with due regard to the costs of transport and anticipated requirements of the Fund. In an emergency the Executive Directors may transfer all or any part of the Fund’s gold holdings to any place where they can be adequately protected.

Section 3. Guarantee of the Fund’s assets

Each member guarantees all assets of the Fund against loss resulting from failure or default on the part of the depository designated by it.

Article XIV Transitional Period

Section 1. Introduction

The Fund is not intended to provide facilities for relief or reconstruction or to deal with international indebtedness arising out of the war.

Section 2. Exchange restrictions

In the post-war transitional period members may, notwithstanding the provisions of any other articles of this Agreement, maintain and adapt to changing circumstances (and, in the case of members whose territories have been occupied by the enemy, introduce where necessary) restrictions on payments and transfers for current international transactions. Members shall, however, have continuous regard in their foreign exchange policies to the purposes of the Fund; and, as soon as conditions permit, they shall take all possible measures to develop such commercial and financial arrangements with other members as will facilitate international payments and the maintenance of exchange stability. In particular, members shall withdraw restrictions maintained or imposed under this Section as soon as they are satisfied that they will be able, in the absence of such restrictions, to settle their balance of payments in a manner which will not unduly encumber their access to the resources of the Fund.

Section 3. Notification to the Fund

Each member shall notify the Fund before it becomes eligible under Article XX, Section 4 (c) or (d), to buy currency from the Fund, whether it intends to avail itself of the transitional arrangements in Section 2 of this Article, or whether it is prepared to accept the obligations of Article VIII, Sections 2, 3, and 4. A member availing itself of the transitional arrangements shall notify the Fund as soon thereafter as it is prepared to accept the above-mentioned obligations.

Section 4. Action of the Fund relating to restrictions

Not later than three years after the date on which the Fund begins operations and in each year thereafter, the Fund shall report on the restrictions still in force under Section 2 of this Article. Five years after the date on which the Fund begins operations, and in each year thereafter, any member still retaining any restrictions inconsistent with Article VIII, Sections 2, 3, or 4, shall consult the Fund as to their further retention. The Fund may, if it deems such action necessary in exceptional circumstances, make representations to any member that conditions are favorable for the withdrawal of any particular restriction, or for the general abandonment of restrictions, inconsistent with the provisions of any other articles of this Agreement. The member shall be given a suitable time to reply to such representations. If the Fund finds that the member persists in maintaining restrictions which are inconsistent with the purposes of the Fund, the member shall be subject to Article XV, Section 2 (a).

Section 5. Nature of transitional period

In its relations with members, the Fund shall recognize that the post-war transitional period will be one of change and adjustment and in making decisions on requests occasioned thereby which are presented by any member it shall give the member the benefit of any reasonable doubt.

Article XV Withdrawal from Membership

Section 1. Right of members to withdraw

Any member may withdraw from the Fund at any time by transmitting a notice in writing to the Fund at its principal office. Withdrawal shall become effective on the date such notice is received.

Section 2. Compulsory withdrawal

(a) If a member fails to fulfill any of its obligations under this Agreement, the Fund may declare the member ineligible to use the resources of the Fund. Nothing in this Section shall be deemed to limit the provisions of Article IV, Section 6, Article V, Section 5, or Article VI, Section 1.

(b) If, after the expiration of a reasonable period the member persists in its failure to fulfill any of its obligations under this Agreement, or a difference between a member and the Fund under Article IV, Section 6, continues, that member may be required to withdraw from membership in the Fund by a decision of the Board of Governors carried by a majority of the governors representing a majority of the total voting power.

(c) Regulations shall be adopted to ensure that before action is taken against any member under (a) or (b) above, the member shall be informed in reasonable time of the complaint against it and given an adequate opportunity for stating its case, both orally and in writing.

Section 3. Settlement of accounts with members withdrawing

When a member withdraws from the Fund, normal transactions of the Fund in its currency shall cease and settlement of all accounts between it and the Fund shall be made with reasonable despatch by agreement between it and the Fund. If agreement is not reached promptly, the provisions of Schedule D shall apply to the settlement of accounts.

Article XVI Emergency Provisions

Section 1. Temporary suspension

(a) In the event of an emergency or the development of unforeseen circumstances threatening the operations of the Fund, the Executive Directors by unanimous vote may suspend for a period of not more than one hundred twenty days the operation of any of the following provisions:

  • (i) Article IV, Sections 3 and 4 (b)

  • (ii) Article V, Sections 2, 3, 7, 8 (a) and (f)

  • (iii) Article VI, Section 2

  • (iv) Article XI, Section 1

(b) Simultaneously with any decision to suspend the operation of any of the foregoing provisions, the Executive Directors shall call a meeting of the Board of Governors for the earliest practicable date.

(c) The Executive Directors may not extend any suspension beyond one hundred twenty days. Such suspension may be extended, however, for an additional period of not more than two hundred forty days, if the Board of Governors by a four-fifths majority of the total voting power so decides, but it may not be further extended except by amendment of this Agreement pursuant to Article XVII.

(d) The Executive Directors may, by a majority of the total voting power, terminate such suspension at any time.

Section 2. Liquidation of the Fund

(a) The Fund may not be liquidated except by decision of the Board of Governors. In an emergency, if the Executive Directors decide that liquidation of the Fund may be necessary, they may temporarily suspend all transactions, pending decision by the Board.

(b) If the Board of Governors decides to liquidate the Fund, the Fund shall forthwith cease to engage in any activities except those incidental to the orderly collection and liquidation of its assets and the settlement of its liabilities, and all obligations of members under this Agreement shall cease except those set out in this Article, in Article XVIII, paragraph (c), in Schedule D, paragraph 7, and in Schedule E.

(c) Liquidation shall be administered in accordance with the provisions of Schedule E.

Article XVII Amendments

(a) Any proposal to introduce modifications in this Agreement, whether emanating from a member, a governor or the Executive Directors, shall be communicated to the chairman of the Board of Governors who shall bring the proposal before the Board. If the proposed amendment is approved by the Board the Fund shall, by circular letter or telegram, ask all members whether they accept the proposed amendment. When three-fifths of the members, having four-fifths of the total voting power, have accepted the proposed amendment, the Fund shall certify the fact by a formal communication addressed to all members.

(b) Notwithstanding (a) above, acceptance by all members is required in the case of any amendment modifying

  • (i) the right to withdraw from the Fund (Article XV, Section 1);

  • (ii) the provision that no change in a member’s quota shall be made without its consent (Article III, Section 2);

  • (iii) the provision that no change may be made in the par value of a member’s currency except on the proposal of that member (Article IV, Section 5 (b)).

(c) Amendments shall enter into force for all members three months after the date of the formal communication unless a shorter period is specified in the circular letter or telegram.

Article XVIII Interpretation

(a) Any question of interpretation of the provisions of this Agreement arising between any member and the Fund or between any members of the Fund shall be submitted to the Executive Directors for their decision. If the question particularly affects any member not entitled to appoint an executive director it shall be entitled to representation in accordance with Article XII, Section 3 (j).

(b) In any case where the Executive Directors have given a decision under (a) above, any member may require, within three months from the date of the decision, that the question be referred to the Board of Governors, whose decision shall be final. Any question referred to the Board of Governors shall be considered by a Committee on Interpretation of the Board of Governors. Each Committee member shall have one vote. The Board of Governors shall establish the membership, procedures, and voting majorities of the Committee. A decision of the Committee shall be the decision of the Board of Governors unless the Board by an eighty-five percent majority of the total voting power decides otherwise. Pending the result of the reference to the Board the Fund may, so far as it deems necessary, act on the basis of the decision of the Executive Directors.

(c) Whenever a disagreement arises between the Fund and a member which has withdrawn, or between the Fund and any member during liquidation of the Fund, such disagreement shall be submitted to arbitration by a tribunal of three arbitrators, one appointed by the Fund, another by the member or withdrawing member and an umpire who, unless the parties otherwise agree, shall be appointed by the President of the Permanent Court of International Justice or such other authority as may have been prescribed by regulation adopted by the Fund. The umpire shall have full power to settle all questions of procedure in any case where the parties are in disagreement with respect thereto.

Article XIX Explanation of Terms

In interpreting the provisions of this Agreement the Fund and its members shall be guided by the following:

(a) A member’s monetary reserves means its official holdings of gold, of convertible currencies of other members, and of the currencies of such non-members as the Fund may specify.

(b) The official holdings of a member means central holdings (that is, the holdings of its Treasury, central bank, stabilization fund, or similar fiscal agency).

(c) The holdings of other official institutions or other banks within its territories may, in any particular case, be deemed by the Fund, after consultation with the member, to be official holdings to the extent that they are substantially in excess of working balances; provided that for the purpose of determining whether, in a particular case, holdings are in excess of working balances, there shall be deducted from such holdings amounts of currency due to official institutions and banks in the territories of members or non-members specified under (d) below.

(d) A member’s holdings of convertible currencies means its holdings of the currencies of other members which are not availing themselves of the transitional arrangements under Article XIV, Section 2, together with its holdings of the currencies of such non-members as the Fund may from time to time specify. The term currency for this purpose includes without limitation coins, paper money, bank balances, bank acceptances, and government obligations issued with a maturity not exceeding twelve months.

(e) The sums deemed to be official holdings of other official institutions and other banks under (c) above shall be included in the member’s monetary reserves.

(f) The Fund’s holdings of the currency of a member shall include any securities accepted by the Fund under Article III, Section 5.

(g) The Fund, after consultation with a member which is availing itself of the transitional arrangements under Article XIV, Section 2, may deem holdings of the currency of that member which carry specified rights of conversion into another currency or into gold to be holdings of convertible currency for the purpose of the calculation of monetary reserves.

(h) For the purpose of calculating gold subscriptions under Article III, Section 3, a member’s net official holdings of gold and United States dollars shall consist of its official holdings of gold and United States currency after deducting central holdings of its currency by other countries and holdings of its currency by other official institutions and other banks if these holdings carry specified rights of conversion into gold or United States currency.

(i) Payments for current transactions means payments which are not for the purpose of transferring capital, and includes, without limitation:

  • (1) All payments due in connection with foreign trade, other current business, including services, and normal short-term banking and credit facilities;

  • (2) Payments due as interest on loans and as net income from other investments;

  • (3) Payments of moderate amount for amortization of loans or for depreciation of direct investments;

  • (4) Moderate remittances for family living expenses.

The Fund may, after consultation with the members concerned, determine whether certain specific transactions are to be considered current transactions or capital transactions.

(j) Gold tranche purchase means a purchase by a member of the currency of another member in exchange for its own currency which does not cause the Fund’s holdings of the member’s currency to exceed one hundred percent of its quota, provided that for the purposes of this definition the Fund may exclude purchases and holdings under policies on the use of its resources for compensatory financing of export fluctuations.

Article XX Inaugural Provisions

Section 1. Entry into force

This Agreement shall enter into force when it has been signed on behalf of governments having sixty-five percent of the total of the quotas set forth in Schedule A and when the instruments referred to in Section 2 (a) of this Article have been deposited on their behalf, but in no event shall this Agreement enter into force before May 1, 1945.

Section 2. Signature

(a) Each government on whose behalf this Agreement is signed shall deposit with the Government of the United States of America an instrument setting forth that it has accepted this Agreement in accordance with its law and has taken all steps necessary to enable it to carry out all of its obligations under this Agreement.

(b) Each government shall become a member of the Fund as from the date of the deposit on its behalf of the instrument referred to in (a) above, except that no government shall become a member before this Agreement enters into force under Section 1 of this Article.

(c) The Government of the United States of America shall inform the governments of all countries whose names are set forth in Schedule A, and all governments whose membership is approved in accordance with Article II, Section 2, of all signatures of this Agreement and of the deposit of all instruments referred to in (a) above.

(d) At the time this Agreement is signed on its behalf, each government shall transmit to the Government of the United States of America one one-hundredth of one percent of its total subscription in gold or United States dollars for the purpose of meeting administrative expenses of the Fund. The Government of the United States of America shall hold such funds in a special deposit account and shall transmit them to the Board of Governors of the Fund when the initial meeting has been called under Section 3 of this Article. If this Agreement has not come into force by December 31, 1945, the Government of the United States of America shall return such funds to the governments that transmitted them.

(e) This Agreement shall remain open for signature at Washington on behalf of the governments of the countries whose names are set forth in Schedule A until December 31, 1945.

(f) After December 31, 1945, this Agreement shall be open for signature on behalf of the government of any country whose membership has been approved in accordance with Article II, Section 2.

(g) By their signature of this Agreement, all governments accept it both on their own behalf and in respect of all their colonies, overseas territories, all territories under their protection, suzerainty, or authority and all territories in respect of which they exercise a mandate.

(h) In the case of governments whose metropolitan territories have been under enemy occupation, the deposit of the instrument referred to in (a) above may be delayed until one hundred eighty days after the date on which these territories have been liberated. If, however, it is not deposited by any such government before the expiration of this period the signature affixed on behalf of that government shall become void and the portion of its subscription paid under (d) above shall be returned to it.

(i) Paragraphs (d) and (h) shall come into force with regard to each signatory government as from the date of its signature.

Section 3. Inauguration of the Fund

(a) As soon as this Agreement enters into force under Section 1 of this Article, each member shall appoint a governor and the member having the largest quota shall call the first meeting of the Board of Governors.

(b) At the first meeting of the Board of Governors, arrangements shall be made for the selection of provisional executive directors. The governments of the five countries for which the largest quotas are set forth in Schedule A shall appoint provisional executive directors. If one or more of such governments have not become members, the executive directorships they would be entitled to fill shall remain vacant until they become members, or until January 1, 1946, whichever is the earlier. Seven provisional executive directors shall be elected in accordance with the provisions of Schedule C and shall remain in office until the date of the first regular election of executive directors which shall be held as soon as practicable after January 1, 1946.

(c) The Board of Governors may delegate to the provisional executive directors any powers except those which may not be delegated to the Executive Directors.

Section 4. Initial determination of par values

(a) When the Fund is of the opinion that it will shortly be in a position to begin exchange transactions, it shall so notify the members and shall request each member to communicate within thirty days the par value of its currency based on the rates of exchange prevailing on the sixtieth day before the entry into force of this Agreement. No member whose metropolitan territory has been occupied by the enemy shall be required to make such a communication while that territory is a theater of major hostilities or for period thereafter as the Fund may determine. When such a member communicates the par value of its currency the provisions of (d) below shall apply.

(b) The par value communicated by a member whose metropolitan territory has not been occupied by the enemy shall be the par value of that member’s currency for the purposes of this Agreement unless, within ninety days after the request referred to in (a) above has been received, (i) the member notifies the Fund that it regards the par value as unsatisfactory, or (ii) the Fund notifies the member that in its opinion the par value cannot be maintained without causing recourse to the Fund on the part of that member or others on a scale prejudicial to the Fund and to members. When notification is given under (i) or (ii) above, the Fund and the member shall, within a period determined by the Fund in the light of all relevant circumstances, agree upon a suitable par value for that currency. If the Fund and the member do not agree within the period so determined, the member shall be deemed to have withdrawn from the Fund on the date when the period expires.

(c) When the par value of a member’s currency has been established under (b) above, either by the expiration of ninety days without notification, or by agreement after notification, the member shall be eligible to buy from the Fund the currencies of other members to the full extent permitted in this Agreement, provided that the Fund has begun exchange transactions.

(d) In the case of a member whose metropolitan territory has been occupied by the enemy, the provisions of (b) above shall apply, subject to the following modifications:

  • (i) The period of ninety days shall be extended so as to end on a date to be fixed by agreement between the Fund and the member.

  • (ii) Within the extended period the member may, if the Fund has begun exchange transactions, buy from the Fund with its currency the currencies of other members, but only under such conditions and in such amounts as may be prescribed by the Fund.

  • (iii) At any time before the date fixed under (i) above, changes may be made by agreement with the Fund in the par value communicated under (a) above.

(e) If a member whose metropolitan territory has been occupied by the enemy adopts a new monetary unit before the date to be fixed under (d) (i) above, the par value fixed by that member for the new unit shall be communicated to the Fund and the provisions of (d) above shall apply.

(f) Changes in par values agreed with the Fund under this Section shall not be taken into account in determining whether a proposed change falls within (i), (ii), or (iii) of Article IV, Section 5 (c).

(g) A member communicating to the Fund a par value for the currency of its metropolitan territory shall simultaneously communicate a value, in terms of that currency, for each separate currency, where such exists, in the territories in respect of which it has accepted this Agreement under Section 2 (g) of this Article, but no member shall be required to make a communication for the separate currency of a territory which has been occupied by the enemy while that territory is a theater of major hostilities or for such period thereafter as the Fund may determine. On the basis of the par value so communicated, the Fund shall compute the par value of each separate currency. A communication or notification to the Fund under (a), (b) or (d) above regarding the par value of a currency, shall also be deemed, unless the contrary is stated, to be a communication or notification regarding the par value of all the separate currencies referred to above. Any member may, however, make a communication or notification relating to the metropolitan or any of the separate currencies alone. If the member does so, the provisions of the preceding paragraphs (including (d) above, if a territory where a separate currency exists has been occupied by the enemy) shall apply to each of these currencies separately.

(h) The Fund shall begin exchange transactions at such date as it may determine after members having sixty-five percent of the total of the quotas set forth in Schedule A have become eligible, in accordance with the preceding paragraphs of this Section, to purchase the currencies of other members, but in no event until after major hostilities in Europe have ceased.

(i) The Fund may postpone exchange transactions with any member if its circumstances are such that, in the opinion of the Fund, they would lead to use of the resources of the Fund in a manner contrary to the purposes of this Agreement or prejudicial to the Fund or the members.

(j) The par values of the currencies of governments which indicate their desire to become members after December 31, 1945, shall be determined in accordance with the provisions of Article II, Section 2.

Article XXI Special Drawing Rights

Section 1. Authority to allocate special drawing rights

To meet the need, as and when it arises, for a supplement to existing reserve assets, the Fund is authorized to allocate special drawing rights to members that are participants in the Special Drawing Account.

Section 2. Unit of value

The unit of value of special drawing rights shall be equivalent to 0.888 671 gram of fine gold.

Article XXII General Account and Special Drawing Account

Section 1. Separation of operations and transactions

All operations and transactions involving special drawing rights shall be conducted through the Special Drawing Account. All other operations and transactions of the Fund authorized by or under this Agreement shall be conducted through the General Account. Operations and transactions pursuant to Article XXIII, Section 2, shall be conducted through the General Account as well as the Special Drawing Account.

Section 2. Separation of assets and property

All assets and property of the Fund shall be held in the General Account, except that assets and property acquired under Article XXVI, Section 2, and Articles XXX and XXXI and Schedules H and I shall be held in the Special Drawing Account. Any assets or property held in one Account shall not be available to discharge or meet the liabilities, obligations, or losses of the Fund incurred in the conduct of the operations and transactions of the other Account, except that the expenses of conducting the business of the Special Drawing Account shall be paid by the Fund from the General Account which shall be reimbursed from time to time by assessments under Article XXVI, Section 4, made on the basis of a reasonable estimate of such expenses.

Section 3. Recording and information

All changes in holdings of special drawing rights shall take effect only when recorded by the Fund in the Special Drawing Account. Participants shall notify the Fund of the provisions of this Agreement under which special drawing rights are used. The Fund may require participants to furnish it with such other information as it deems necessary for its functions.

Article XXIII Participants and Other Holders of Special Drawing Rights

Section 1. Participants

Each member of the Fund that deposits with the Fund an instrument setting forth that it undertakes all the obligations of a participant in the Special Drawing Account in accordance with its law and that it has taken all steps necessary to enable it to carry out all of these obligations shall become a participant in the Special Drawing Account as of the date the instrument is deposited, except that no member shall become a participant before Articles XXI through XXXII and Schedules F through I have entered into force and instruments have been deposited under this Section by members that have at least seventy-five percent of the total of quotas.

Section 2. General Account as a holder

The Fund may accept and hold special drawing rights in the General Account and use them, in accordance with the provisions of this Agreement.

Section 3. Other holders

The Fund by an eighty-five percent majority of the total voting power may prescribe:

  • (i) as holders, non-members, members that are non-participants, and institutions that perform functions of a central bank for more than one member;

  • (ii) the terms and conditions on which these holders may be permitted to accept, hold, and use special drawing rights, in operations and transactions with participants; and

  • (iii) the terms and conditions on which participants may enter into operations and transactions with these holders.

The terms and conditions prescribed by the Fund for the use of special drawing rights by prescribed holders and by participants in operations and transactions with them shall be consistent with the provisions of this Agreement.

Article XXIV Allocation and Cancellation of Special Drawing Rights

Section 1. Principles and considerations governing allocation and cancellation

(a) In all its decisions with respect to the allocation and cancellation of special drawing rights the Fund shall seek to meet the long-term global need, as and when it arises, to supplement existing reserve assets in such manner as will promote the attainment of its purposes and will avoid economic stagnation and deflation as well as excess demand and inflation in the world.

(b) The first decision to allocate special drawing rights shall take into account, as special considerations, a collective judgment that there is a global need to supplement reserves, and the attainment of a better balance of payments equilibrium, as well as the likelihood of a better working of the adjustment process in the future.

Section 2. Allocation and cancellation

(a) Decisions of the Fund to allocate or cancel special drawing rights shall be made for basic periods which shall run consecutively and shall be five years in duration. The first basic period shall begin on the date of the first decision to allocate special drawing rights or such later date as may be specified in that decision. Any allocations or cancellations shall take place at yearly intervals.

(b) The rates at which allocations are to be made shall be expressed as percentages of quotas on the date of each decision to allocate. The rates at which special drawing rights are to be cancelled shall be expressed as percentages of net cumulative allocations of special drawing rights on the date of each decision to cancel. The percentages shall be the same for all participants.

(c) In its decision for any basic period the Fund may provide, notwithstanding (a) and (b) above, that:

  • (i) the duration of the basic period shall be other than five years; or

  • (ii) the allocations or cancellations shall take place at other than yearly intervals; or

  • (iii) the basis for allocations or cancellations shall be the quotas or net cumulative allocations on dates other than the dates of decisions to allocate or cancel.

(d) A member that becomes a participant after a basic period starts shall receive allocations beginning with the next basic period in which allocations are made after it becomes a participant unless the Fund decides that the new participant shall start to receive allocations beginning with the next allocation after it becomes a participant. If the Fund decides that a member that becomes a participant during a basic period shall receive allocations during the remainder of that basic period and the participant was not a member on the dates established under (b) or (c) above, the Fund shall determine the basis on which these allocations to the participant shall be made.

(e) A participant shall receive allocations of special drawing rights made pursuant to any decision to allocate unless:

  • (i) the governor for the participant did not vote in favor of the decision; and

  • (ii) the participant has notified the Fund in writing prior to the first allocation of special drawing rights under that decision that it does not wish special drawing rights to be allocated to it under the decision. On the request of a participant, the Fund may decide to terminate the effect of the notice with respect to allocations of special drawing rights subsequent to the termination.

(f) If on the effective date of any cancellation the amount of special drawing rights held by a participant is less than its share of the special drawing rights that are to be cancelled, the participant shall eliminate its negative balance as promptly as its gross reserve position permits and shall remain in consultation with the Fund for this purpose. Special drawing rights acquired by the participant after the effective date of the cancellation shall be applied against its negative balance and cancelled.

Section 3. Unexpected major developments

The Fund may change the rates or intervals of allocation or cancellation during the rest of a basic period or change the length of a basic period or start a new basic period, if at any time the Fund finds it desirable to do so because of unexpected major developments.

Section 4. Decisions and cancellations

(a) Decisions under Section 2 (a), (b), and (c) or Section 3 of this Article shall be made by the Board of Governors on the basis of proposals of the Managing Director concurred in by the Executive Directors.

(b) Before making any proposal, the Managing Director, after having satisfied himself that it will be consistent with the provisions of Section 1 (a) of this Article, shall conduct such consultations as will enable him to ascertain that there is broad support among participants for the proposal. In addition, before making a proposal for the first allocation, the Managing Director shall satisfy himself that the provisions of Section 1 (b) of this Article have been met and that there is broad support among participants to begin allocations; he shall make a proposal for the first allocation as soon after the establishment of the Special Drawing Account as he is so satisfied.

(c) The Managing Director shall make proposals:

  • (i) not later than six months before the end of each basic period;

  • (ii) if no decision has been taken with respect to allocation or cancellation for a basic period, whenever he is satisfied that the provisions of (b) have been met;

  • (iii) when, in accordance with Section 3 of this Article, he considers that it would be desirable to change the rate or intervals of allocation or cancellation or change the length of a basic period or start a new basic period; or

  • (iv) within six months of a request by the Board of Governors or the Executive Directors;

provided that, if under (i), (iii), or (iv) above the Managing Director ascertains that there is no proposal which he considers to be consistent with the provisions of Section 1 of this Article that has broad support among participants in accordance with (b) above, he shall report to the Board of Governors and to the Executive Directors.

(d) A majority of eighty-five percent of the total voting power shall be required for decisions under Section 2 (a), (b), and (c) or Section 3 of this Article except for decisions under Section 3 with respect to a decrease in the rates of allocation.

Article XXV Operations and Transactions in Special Drawing Rights

Section 1. Use of special drawing rights

Special drawing rights may be used in the operations and transactions authorized by or under this Agreement.

Section 2. Transactions between participants

(a) A participant shall be entitled to use its special drawing rights to obtain an equivalent amount of currency from a participant designated under Section 5 of this Article.

(b) A participant, in agreement with another participant, may use its special drawing rights:

  • (i) to obtain an equivalent amount of its own currency held by the other participant; or

  • (ii) to obtain an equivalent amount of currency from the other participant in any transactions, prescribed by the Fund, that would promote reconstitution by the other participant under Section 6 (a) of this Article; prevent or reduce a negative balance of the other participant; offset the effect of a failure by the other participant to fulfill the expectation in Section 3 (a) of this Article; or bring the holdings of special drawing rights by both participants closer to their net cumulative allocations. The Fund by an eighty-five percent majority of the total voting power may prescribe additional transactions or categories of transactions under this provision. Any transactions or categories of transactions prescribed by the Fund under this subsection (b) (ii) shall be consistent with the other provisions of this Agreement and with the proper use of special drawing rights in accordance with this Agreement.

(c) A participant that provides currency to a participant using special drawing rights shall receive an equivalent amount of special drawing rights.

Section 3. Requirement of need

(a) In transactions under Section 2 of this Article, except as otherwise provided in (c) below, a participant will be expected to use its special drawing rights only to meet balance of payments needs or in the light of developments in its official holdings of gold, foreign exchange, and special drawing rights, and its reserve position in the Fund, and not for the sole purpose of changing the composition of the foregoing as between special drawing rights and the total of gold, foreign exchange, and reserve position in the Fund.

(b) The use of special drawing rights shall not be subject to challenge on the basis of the expectation in (a) above, but the Fund may make representations to a participant that fails to fulfill this expectation. A participant that persists in failing to fulfill this expectation shall be subject to Article XXIX, Section 2 (b).

(c) Participants may use special drawing rights without fulfilling the expectation in (a) above to obtain an equivalent amount of currency from another participant in any transactions, prescribed by the Fund, that would promote reconstitution by the other participant under Section 6 (a) of this Article; prevent or reduce a negative balance of the other participant; offset the effect of a failure by the other participant to fulfill the expectation in (a) above; or bring the holdings of special drawing rights by both participants closer to their net cumulative allocations.

Section 4. Obligation to provide currency

A participant designated by the Fund under Section 5 of this Article shall provide on demand currency convertible in fact to a participant using special drawing rights under Section 2 (a) of this Article. A participant’s obligation to provide currency shall not extend 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 provide currency in excess of the obligatory limit or any agreed higher limit.

Section 5. Designation of participants to provide currency

(a) The Fund shall ensure that a participant will be able to use its special drawing rights by designating participants to provide currency for specified amounts of special drawing rights for the purposes of Section 2 (a) and 4 of this Article. Designations shall be made in accordance with the following general principles supplemented by such other principles as the Fund may adopt from time to time:

  • (i) A participant shall be subject to designation if its balance of payments and gross reserve position is sufficiently strong, but this will not preclude the possibility that a participant with a strong reserve position will be designated even though it has a moderate balance of payments deficit. Participants shall be designated in such manner as will promote over time a balanced distribution of holdings of special drawing rights among them.

  • (ii) Participants shall be subject to designation in order to promote reconstitution under Section 6 (a) of this Article; to reduce negative balances in holdings of special drawing rights; or to offset the effect of failures to fulfill the expectation in Section 3 (a) of this Article.

  • (iii) In designating participants the Fund normally shall give priority to those that need to acquire special drawing rights to meet the objectives of designation under (ii) above.

(b) In order to promote over time a balanced distribution of holdings of special drawing rights under (a) (i) above, the Fund shall apply the rules for designation in Schedule F or such rules as may be adopted under (c) below.

(c) The rules for designation shall be reviewed before the end of the first and each subsequent basic period and the Fund may adopt new rules as the result of a review. Unless new rules are adopted, the rules in force at the time of the review shall continue to apply.

Section 6. Reconstitution

(a) Participants that use their special drawing rights shall reconstitute their holdings of them in accordance with the rules for reconstitution in Schedule G or such rules as may be adopted under (b) below.

(b) The rules for reconstitution shall be reviewed before the end of the first and each subsequent basic period and new rules shall be adopted if necessary. Unless new rules are adopted or a decision is made to abrogate rules for reconstitution, the rules in force at the time of the review shall continue to apply. An eighty-five percent majority of the total voting power shall be required for decisions to adopt, modify, or abrogate the rules for reconstitution.

Section 7. Operations and transactions through the General Account

(a) Special drawing rights shall be included in a member’s monetary reserves under Article XIX for the purposes of Article III, Section 4 (a), Article V, Section 7 (b) and (c), Article V, Section 8 (f), and Schedule B, paragraph 1. The Fund may decide that in calculating monetary reserves and the increase in monetary reserves during any year for the purpose of Article V, Section 7 (b) and (c), no account shall be taken of any increase or decrease in those monetary reserves which is due to allocations or cancellations of special drawing rights during the year.

(b) The Fund shall accept special drawing rights:

  • (i) in repurchases accruing in special drawing rights under Article V, Section 7 (b); and

  • (ii) in reimbursement pursuant to Article XXVI, Section 4.

(c) The Fund may accept special drawing rights to the extent it may decide:

  • (i) in payment of charges; and

  • (ii) in repurchases other than those under Article V, Section 7 (b), in proportions which, as far as feasible, shall be the same for all members.

(d) The Fund, if it deems such action appropriate to replenish its holdings of a participant’s currency and after consultation with that participant on alternative ways of replenishment under Article VII, Section 2, may require that participant to provide its currency for special drawing rights held in the General Account subject to Section 4 of this Article. In replenishing with special drawing rights, the Fund shall pay due regard to the principles of designation under Section 5 of this Article.

(e) To the extent that a participant may receive special drawing rights in a transaction prescribed by the Fund to promote reconstitution by it under Section 6 (a) of this Article, prevent or reduce a negative balance, or offset the effect of a failure by it to fulfill the expectation in Section 3 (a) of this Article, the Fund may provide the Participant with special drawing rights held in the General Account for gold or currency acceptable to the Fund.

(f) In any of the other operations and transactions of the Fund with a participant conducted through the General Account the Fund may use special drawing rights by agreement with the participant.

(g) The Fund may levy reasonable charges uniform for all participants in connection with operations and transactions under this Section.

Section 8. Exchange rates

(a) The exchange rates for operations or transactions between participants shall be such that a participant using special drawing rights shall receive the same value whatever currencies might be provided and whichever participants provide those currencies, and the Fund shall adopt regulations to give effect to this principle.

(b) The Fund shall consult a participant on the procedure for determining rates of exchange for its currency.

(c) For the purpose of this provision the term participant includes a terminating participant.

Article XXVI Special Drawing Account Interest and Charges

Section 1. Interest

Interest at the same rate for all holders shall be paid by the Fund to each holder on the amount of its holdings of special drawing rights. The Fund shall pay the amount due to each holder whether or not sufficient charges are received to meet the payment of interest.

Section 2. Charges

Charges at the same rate for all participants shall be paid to the Fund by each participant on the amount of its net cumulative allocation of special drawing rights plus any negative balance of the participant or unpaid charges.

Section 3. Rate of interest and charges

The rate of interest shall be equal to the rate of charges and shall be one and one-half percent per annum. The Fund in its discretion may increase or reduce this rate, but the rate shall not be greater than two percent or the rate of remuneration decided under Article V, Section 9, whichever is higher, or smaller than one percent or the rate of remuneration decided under Article V, Section 9, whichever is lower.

Section 4. Assessments

When it is decided under Article XXII, Section 2, that reimbursement shall be made, the Fund shall levy assessments for this purpose at the same rate for all participants on their net cumulative allocations.

Section 5. Payment of interest, charges, and assessments

Interest, charges, and assessments shall be paid in special drawing rights. A participant that needs special drawing rights to pay any charge or assessment shall be obligated and entitled to obtain them, at its option for gold or currency acceptable to the Fund, in a transaction with the Fund conducted through the General Account. If sufficient special drawing rights cannot be obtained in this way, the participant shall be obligated and entitled to obtain them with currency convertible in fact from a participant which the Fund shall specify. Special drawing rights acquired by a participant after the date for payment shall be applied against its unpaid charges and cancelled.

Article XXVII Administration of the General Account and the Special Drawing Account

(a) The General Account and the Special Drawing Account shall be administered in accordance with the provisions of Article XII, subject to the following:

  • (i) The Board of Governors may delegate to the Executive Directors authority to exercise any powers of the Board with respect to special drawing rights except those under Article XXIII, Section 3, Article XXIV, Section 2 (a), (b), and (c), and Section 3, the penultimate sentence of Article XXV, Section 2 (b), Article XXV, Section 6 (b), and Article XXXI (a).

  • (ii) For meetings of or decisions by the Board of Governors on matters pertaining exclusively to the Special Drawing Account only requests by or the presence and the votes of governors appointed by members that are participants shall be counted for the purpose of calling meetings and determining whether a quorum exists or whether a decision is made by the required majority.

  • (iii) For decisions by the Executive Directors on matters pertaining exclusively to the Special Drawing Account only directors appointed or elected by at least one member that is a participant shall be entitled to vote. Each of these directors shall be entitled to cast the number of votes allotted to the member which is a participant that appointed him or to the members that are participants whose votes counted towards his election. Only the presence of directors appointed or elected by members that are participants and the votes allotted to members that are participants shall be counted for the purpose of determining whether a quorum exists or whether a decision is made by the required majority.

  • (iv) Questions of the general administration of the Fund, including reimbursement under Article XXII, Section 2, and any question whether a matter pertains to both Accounts or exclusively to the Special Drawing Account shall be decided as if they pertained exclusively to the General Account. Decisions with respect to the acceptance and holding of special drawing rights in the General Account and the use of them, and other decisions affecting the operations and transactions conducted through both the General Account and the Special Drawing Account shall be made by the majorities required for decisions on matters pertaining exclusively to each Account. A decision on a matter pertaining to the Special Drawing Account shall so indicate.

(b) In addition to the privileges and immunities that are accorded under Article IX of this Agreement, no tax of any kind shall be levied on special drawing rights or on operations or transactions in special drawing rights.

(c) A question of interpretation of the provisions of this Agreement on matters pertaining exclusively to the Special Drawing Account shall be submitted to the Executive Directors pursuant to Article XVIII (a) only on the request of a participant. In any case where the Executive Directors have given a decision on a question of interpretation pertaining exclusively to the Special Drawing Account only a participant may require that the question be referred to the Board of Governors under Article XVIII (b). The Board of Governors shall decide whether a governor appointed by a member that is not a participant shall be entitled to vote in the Committee on Interpretation on questions pertaining exclusively to the Special Drawing Account.

(d) Whenever a disagreement arises between the Fund and a participant that has terminated its participation in the Special Drawing Account or between the Fund and any participant during the liquidation of the Special Drawing Account with respect to any matter arising exclusively from participation in the Special Drawing Account, the disagreement shall be submitted to arbitration in accordance with the procedures in Article XVIII (c).

Article XXVIII General Obligations of Participants

In addition to the obligations assumed with respect to special drawing rights under other Articles of this Agreement, each participant undertakes to collaborate with the Fund and with other participants in order to facilitate the effective functioning of the Special Drawing Account and the proper use of special drawing rights in accordance with this Agreement.

Article XXIX Suspension of Transactions in Special Drawing Rights

Section 1. Emergency provisions

In the event of an emergency or the development of unforeseen circumstances threatening the operations of the Fund with respect to the Special Drawing Account, the Executive Directors by unanimous vote may suspend for a period of not more than one hundred twenty days the operation of any of the provisions relating to special drawing rights, and the provisions of Article XVI, Section 1 (b), (c) and (d), shall then apply.

Section 2. Failure to fulfill obligations

(a) If the Fund finds that a participant has failed to fulfill its obligations under Article XXV, Section 4, the right of the participant to use its special drawing rights, shall be suspended unless the Fund otherwise determines.

(b) If the Fund finds that a participant has failed to fulfill any other obligation with respect to special drawing rights, the Fund may suspend the right of the participant to use special drawing rights it acquires after the suspension.

(c) Regulations shall be adopted to ensure that before action is taken against any participant under (a) or (b) above, the participant shall be informed immediately of the complaint against it and given an adequate opportunity for stating its case, both orally and in writing. Whenever the participant is thus informed of a complaint relating to (a) above, it shall not use special drawing rights pending the disposition of the complaint.

(d) Suspension under (a) or (b) above or limitation under (c) above shall not affect a participant’s obligation to provide currency in accordance with Article XXV, Section 4.

(e) The Fund may at any time terminate a suspension under (a) or (b) above, provided that a suspension imposed on a participant under (b) above for failure to fulfill the obligation under Article XXV, Section 6 (a), shall not be terminated until one hundred eighty days after the end of the first calendar quarter during which the participant complies with the rules for reconstitution.

(f) The right of a participant to use its special drawing rights shall not be suspended because it has become ineligible to use the Fund’s resources under Article IV, Section 6, Article V, Section 5, Article VI, Section 1, or Article XV, Section 2 (a). Article XV, Section 2, shall not apply because a participant has failed to fulfill any obligations with respect to special drawing rights.

Article XXX Termination of Participation

Section 1. Right to terminate participation

(a) Any participant may terminate its participation in the Special Drawing Account at any time by transmitting a notice in writing to the Fund at its principal office. Termination shall become effective on the date the notice is received.

(b) A participant that withdraws from membership in the Fund shall be deemed to have simultaneously terminated its participation in the Special Drawing Account.

Section 2. Settlement on termination

(a) When a participant terminates its participation in the Special Drawing Account, all operations and transactions by the terminating participant in special drawing rights shall cease except as otherwise permitted under an agreement made pursuant to (c) below in order to facilitate a settlement or as provided in Sections 3, 5, and 6 of this Article or in Schedule H. Interest and charges that accrued to the date of termination and assessments levied before that date but not paid shall be paid in special drawing rights.

(b) The Fund shall be obligated to redeem all special drawing rights held by the terminating participant, and the terminating participant shall be obligated to pay to the Fund an amount equal to its net cumulative allocation and any other amounts that may be due and payable because of its participation in the Special Drawing Account. These obligations shall be set off against each other and the amount of special drawing rights held by the terminating participant that is used in the setoff to extinguish its obligation to the Fund shall be cancelled.

(c) A settlement shall be made with reasonable dispatch by agreement between the terminating participant and the Fund with respect to any obligation of the terminating participant or the Fund after the setoff in (b) above. If agreement on a settlement is not reached promptly the provisions of Schedule H shall apply.

Section 3. Interest and charges

After the date of termination the Fund shall pay interest on any outstanding balance of special drawing rights held by a terminating participant and the terminating participant shall pay charges on any outstanding obligation owed to the Fund at the times and rates prescribed under Article XXVL Payment shall be made in special drawing rights. A terminating participant shall be entitled to obtain special drawing rights with currency convertible in fact to pay charges or assessments in a transaction with a participant specified by the Fund or by agreement from any other holder, or to dispose of special drawing rights received as interest in a transaction with any participant designated under Article XXV, Section 5, or by agreement with any other holder.

Section 4. Settlement of obligation to the Fund

Gold or currency received by the Fund from a terminating participant shall be used by the Fund to redeem special drawing rights held by participants in proportion to the amount by which each participant’s holdings of special drawing rights exceed its net cumulative allocation at the time the gold or currency is received by the Fund. Special drawing rights so redeemed and special drawing rights obtained by a terminating participant under the provisions of this Agreement to meet any installment due under an agreement on settlement or under Schedule H and set off against that installment shall be cancelled.

Section 5. Settlement of obligation to a terminating participant

Whenever the Fund is required to redeem special drawing rights held by a terminating participant, redemption shall be made with currency or gold provided by participants specified by the Fund. These participants shall be specified in accordance with the principles in Article XXV, Section 5. Each specified participant shall provide at its option the currency of the terminating participant or currency convertible in fact or gold to the Fund and shall receive an equivalent amount of special drawing rights. However, a terminating participant may use its special drawing rights to obtain its own currency, currency convertible in fact, or gold from any holder, if the Fund so permits.

Section 6. General Account transactions

In order to facilitate settlement with a terminating participant the Fund may decide that a terminating participant shall:

  • (i) use any special drawing rights held by it after the setoff in Section 2 (b) of this Article, when they are to be redeemed, in a transaction with the Fund conducted through the General Account to obtain its own currency or currency convertible in fact at the option of the Fund; or

  • (ii) obtain special drawing rights in a transaction with the Fund conducted through the General Account for a currency acceptable to the Fund or gold to meet any charges or installment due under an agreement or the provisions of Schedule H.

Article XXXI Liquidation of the Special Drawing Account

(a) The Special Drawing Account may not be liquidated except by decision of the Board of Governors. In an emergency, if the Executive Directors decide that liquidation of the Special Drawing Account may be necessary, they may temporarily suspend allocations or cancellations and all transactions in special drawing rights pending decision by the Board. A decision by the Board of Governors to liquidate the Fund shall be a decision to liquidate both the General Account and the Special Drawing Account.

(b) If the Board of Governors decides to liquidate the Special Drawing Account, all allocations or cancellations and all operations and transactions in special drawing rights and activities of the Fund with respect to the Special Drawing Account shall cease except those incidental to the orderly discharge of the obligations of participants and of the Fund with respect to special drawing rights, and all obligations of the Fund and of participants under this Agreement with respect to special drawing rights shall cease except those set out in this Article, Article XVIII (c), Article XXVI, Article XXVII (d), Article XXX and Schedule H, or any agreement reached under Article XXX subject to paragraph 4 of Schedule H, Article XXXII, and Schedule I.

(c) Upon liquidation of the Special Drawing Account, interest and charges that accrued to the date of liquidation and assessments levied before that date but not paid shall be paid in special drawing rights. The Fund shall be obligated to redeem all special drawing rights held by holders and each participant shall be obligated to pay the Fund an amount equal to its net cumulative allocation of special drawing rights and such other amounts as may be due and payable because of its participation in the Special Drawing Account.

(d) Liquidation of the Special Drawing Account shall be administered in accordance with the provisions of Schedule I.

Article XXXII Explanation of Terms with Respect to Special Drawing Rights

In interpreting the provisions of this Agreement with respect to special drawing rights the Fund and its members shall be guided by the following:

(a) Net cumulative allocation of special drawing rights means the total amount of special drawing rights allocated to a participant less its share of special drawing rights that have been cancelled under Article XXIV, Section 2 (a).

(b) Currency convertible in fact means:

  • (1) a participant’s currency for which a procedure exists for the conversion of balances of the currency obtained in transactions involving special drawing rights into each other currency for which such procedure exists, at rates of exchange prescribed under Article XXV, Section 8, and which is the currency of a participant that

    • (i) has accepted the obligations of Article VIII, Sections 2, 3, and 4, or

    • (ii) for the settlement of international transactions in fact freely buys and sells gold within the limits prescribed by the Fund under Section 2 of Article IV; or

    (2) currency convertible into a currency described in paragraph (1) above at rates of exchange prescribed under Article XXV, Section 8.

(c) A participant’s reserve position in the Fund means the sum of the gold tranche purchases it could make and the amount of any indebtedness of the Fund which is readily repayable to the participant under a loan agreement.

[The signature and depository clause reproduced below followed the text of Article XX in the original Articles of Agreement]

Done at Washington, in a single copy which shall remain deposited in the archives of the Government of the United States of America, which shall transmit certified copies to all governments whose names are set forth in Schedule A and to all governments whose membership is approved in accordance with Article II, Section 2.

Schedule A Quotas

(In millions of United States dollars)
Australia200Iran25
Belgium225Iraq8
Bolivia10Liberia.5
Brazil150Luxembourg10
Canada300Mexico90
Chile50Netherlands275
China550New Zealand50
Colombia50Nicaragua2
Costa Rica5Norway50
Cuba50Panama.5
Czechoslovakia125Paraguay2
Denmark **Peru25
Dominican Republic5Philippine Common-wealth15
Ecuador5
Egypt45Poland125
El Salvador2.5Union of South Africa100
Ethiopia6Union of Soviet Socialist Republics1200
France450
Greece40United Kingdom1300
Guatemala5United States2750
Haiti5Uruguay15
Honduras2.5Venezuela15
Iceland1Yugoslavia60
India400

The quota of Denmark shall be determined by the Fund after the Danish Government has declared its readiness to sign this Agreement but before signature takes place.

The quota of Denmark shall be determined by the Fund after the Danish Government has declared its readiness to sign this Agreement but before signature takes place.

Schedule B Provisions with Respect to Repurchase by a Member of Its Currency Held by the Fund

1. In determining the extent to which repurchase of a member’s currency from the Fund under Article V, Section 7 (b), shall be made with each convertible currency and each of the other types of monetary reserve, the following rule, subject to 2 below, shall apply:

  • (a) If the member’s monetary reserves have not increased during the year, the amount payable to the Fund shall be distributed among all types of reserves in proportion to the member’s holdings thereof at the end of the year.

  • (b) If the member’s monetary reserves have increased during the year, a part of the amount payable to the Fund equal to one-half of the increase, minus one-half of any decrease in the Fund’s holdings of the member’s currency that has occurred during the year, shall be distributed among those types of reserves which have increased in proportion to the amount by which each of them has increased. The remainder of the sum payable to the Fund shall be distributed among all types of reserves in proportion to the member’s remaining holdings thereof.

  • (c) If after the repurchases required under Article V, Section 7 (b), had been made, the result would exceed either of the limits specified in Article V, Section 7 (c) (i) or (ii), the Fund shall require such repurchases to be made by the member proportionately in such manner that these limits will not be exceeded.

  • (d) If after all the repurchases required under Article V, Section 7 (b), had been made, the result would exceed the limit specified in Article V, Section 7 (c) (iii), the amount by which the limit would be exceeded shall be discharged in convertible currencies as determined by the Fund without exceeding that limit.

  • (e) If a repurchase required under Article V, Section 7 (b), would exceed the limit specified in Article V, Section 7 (c) (iv), the amount by which the limit would be exceeded shall be repurchased at the end of the subsequent financial year or years in such a way that total repurchases under Article V, Section 7 (b) in any year would not exceed the limit specified in Article V, Section 7 (c) (iv).

2. (a) The Fund shall not acquire the currency of any non-member under Article V, Section 7 (b) and (c).

(b) Any amount payable in the currency of a non-member under 1 (a) or 1 (b) above shall be paid in the convertible currencies of members as determined by the Fund.

3. In calculating monetary reserves and the increase in monetary reserves during any year for the purpose of Article V, Section 7 (b) and (c), no account shall be taken, unless deductions have otherwise been made by the member for such holdings, of any increase in those monetary reserves which is due to currency previously inconvertible having become convertible during the year; or to holdings which are the proceeds of a long-term or medium-term loan contracted during the year; or to holdings which have been transferred or set aside for repayment of a loan during the subsequent year.

4. In the case of members whose metropolitan territories have been occupied by the enemy, gold newly produced during the five years after the entry into force of this Agreement from mines located within their metropolitan territories shall not be included in computations of their monetary reserves or of increases in their monetary reserves.

5. In calculating monetary reserves and the increase in monetary reserves during any year for the purpose of Article V, Section 7 (b) and (c), the Fund may decide in its discretion, on the request of a member, that deductions shall be made for obligations outstanding as the result of transactions between members under a reciprocal facility by which a member agrees to exchange on demand its currency for the currency of the other member up to a maximum amount and on terms requiring that each such transaction be reversed within a specified period not in excess of nine months.

6. In calculating monetary reserves and the increase in monetary reserves for the purpose of Article V, Section 7 (b) and (c), Article XIX (e) shall apply except that the following provision shall apply at the end of a financial year if it was in effect at the beginning of that year:

“A member’s monetary reserves shall be calculated by deducting from its central holdings the currency liabilities to the Treasuries, central banks, stabilization funds, or similar fiscal agencies of other members or non-members specified under (d) above, together with similar liabilities to other official institutions and other banks in the territories of members, or non-members specified under (d) above. To these net holdings shall be added the sums deemed to be official holdings of other official institutions and other banks under (c) above.”

Schedule C Election of Executive Directors

1. The election of the elective executive directors shall be by ballot of the governors eligible to vote under Article XII, Section 3 (b) (iii) and (iv).

2. In balloting for the five directors to be elected under Article XII, Section 3 (b) (iii), each of the governors eligible to vote shall cast for one person all of the votes to which he is entitled under Article XII, Section 5 (a). The five persons receiving the greatest number of votes shall be directors, provided that no person who received less than nineteen percent of the total number of votes that can be cast (eligible votes) shall be considered elected.

3. When five persons are not elected in the first ballot, a second ballot shall be held in which the person who received the lowest number of votes shall be ineligible for election and in which there shall vote only (a) those governors who voted in the first ballot for a person not elected, and (b) those governors whose votes for a person elected are deemed under 4 below to have raised the votes cast for that person above twenty percent of the eligible votes.

4. In determining whether the votes cast by a governor are to be deemed to have raised the total of any person above twenty percent of the eligible votes the twenty percent shall be deemed to include, first, the votes of the governor casting the largest number of votes for such person, then the votes of the governor casting the next largest number, and so on until twenty percent is reached.

5. Any governor part of whose votes must be counted in order to raise the total of any person above nineteen percent shall be considered as casting all of his votes for such person even if the total votes for such person thereby exceed twenty percent.

6. If, after the second ballot, five persons have not been elected, further ballots shall be held on the same principles until five persons have been elected, provided that after four persons are elected, the fifth may be elected by a simple majority of the remaining votes and shall be deemed to have been elected by all such votes.

7. The directors to be elected by the American Republics under Article XII, Section 3 (h) (iv) shall be elected as follows:

  • (a) Each of the directors shall be elected separately.

  • (b) In the election of the first director, each governor representing an American Republic eligible to participate in the election shall cast for one person all the votes to which he is entitled. The person receiving the largest number of votes shall be elected provided that he has received not less than forty-five percent of the total votes.

  • (c) If no person is elected on the first ballot, further ballots shall be held, in each of which the person receiving the lowest number of votes shall be eliminated, until one person receives a number of votes sufficient for election under (b) above.

  • (d) Governors whose votes contributed to the election of the first director shall take no part in the election of the second director.

  • (e) Persons who did not succeed in the first election shall not be ineligible for election as the second director.

  • (f) A majority of the votes which can be cast shall be required for election of the second director. If at the first ballot no person receives a majority, further ballots shall be held in each of which the person receiving the lowest number of votes shall be eliminated, until some person obtains a majority.

  • (g) The second director shall be deemed to have been elected by all the votes which could have been cast in the ballot securing his election.

Schedule D Settlement of Accounts with Members Withdrawing

1. The Fund shall be obligated to pay to a member withdrawing an amount equal to its quota, plus any other amounts due to it from the Fund, less any amounts due to the Fund, including charges accruing after the date of its withdrawal; but no payment shall be made until six months after the date of withdrawal. Payments shall be made in the currency of the withdrawing member.

2. If the Fund’s holdings of the currency of the withdrawing member are not sufficient to pay the net amount due from the Fund, the balance shall be paid in gold, or in such other manner, as may be agreed. If the Fund and the withdrawing member do not reach agreement within six months of the date of withdrawal, the currency in question held by the Fund shall be paid forthwith to the withdrawing member. Any balance due shall be paid in ten half-year installments during the ensuing five years. Each such installment shall be paid, at the option of the Fund, either in the currency of the withdrawing member acquired after its withdrawal or by the delivery of gold.

3. If the Fund fails to meet any installment which is due in accordance with the preceding paragraphs, the withdrawing member shall be entitled to require the Fund to pay the installment in any currency held by the Fund with the exception of any currency which has been declared scarce under Article VII, Section 3.

4. If the Fund’s holdings of the currency of a withdrawing member exceed the amount due to it, and if agreement on the method of settling accounts is not reached within six months of the date of withdrawal, the former member shall be obligated to redeem such excess currency in gold or, at its option, in the currencies of members which at the time of redemption are convertible. Redemption shall be made at the parity existing at the time of withdrawal from the Fund. The withdrawing member shall complete redemption within five years of the date of withdrawal, or within such longer period as may be fixed by the Fund, but shall not be required to redeem in any half-yearly period more than one-tenth of the Fund’s excess holdings of its currency at the date of withdrawal plus further acquisitions of the currency during such half-yearly period. If the withdrawing member does not fulfill this obligation, the Fund may in an orderly manner liquidate in any market the amount of currency which should have been redeemed.

5. Any member desiring to obtain the currency of a member which has withdrawn shall acquire it by purchase from the Fund, to the extent that such member has access to the resources of the Fund and that such currency is available under 4 above.

6. The withdrawing member guarantees the unrestricted use at all times of the currency disposed of under 4 and 5 above for the purchase of goods or for payment of sums due to it or to persons within its territories. It shall compensate the Fund for any loss resulting from the difference between the par value of its currency on the date of withdrawal and the value realized by the Fund on disposal under 4 and 5 above.

7. In the event of the Fund going into liquidation under Article XVI, Section 2, within six months of the date on which the member withdraws, the account between the Fund and that government shall be settled in accordance with Article XVI, Section 2, and Schedule E.

Schedule E Administration of Liquidation

1. In the event of liquidation the liabilities of the Fund other than the repayment of subscriptions shall have priority in the distribution of the assets of the Fund. In meeting each such liability the Fund shall use its assets in the following order:

  • (a) the currency in which the liability is payable;

  • (b) gold;

  • (c) all other currencies in proportion, so far as may be practicable, to the quotas of the members.

2. After the discharge of the Fund’s liabilities in accordance with 1 above, the balance of the Fund’s assets shall be distributed and apportioned as follows:

  • (a) The Fund shall distribute its holdings of gold among the members whose currencies are held by the Fund in amounts less than their quotas. These members shall share the gold so distributed in the proportions of the amounts by which their quotas exceed the Fund’s holdings of their currencies.

  • (b) The Fund shall distribute to each member one-half the Fund’s holdings of its currency but such distribution shall not exceed fifty percent of its quota.

  • (c) The Fund shall apportion the remainder of its holdings of each currency among all the members in proportion to the amounts due to each member after the distributions under (a) and (b) above.

3. Each member shall redeem the holdings of its currency apportioned to other members under 2 (c) above, and shall agree with the Fund within three months after a decision to liquidate upon an orderly procedure for such redemption.

4. If a member has not reached agreement with the Fund within the three-month period referred to in 3 above, the Fund shall use the currencies of other members apportioned to that member under 2 (c) above to redeem the currency of that member apportioned to other members. Each currency apportioned to a member which has not reached agreement shall be used, so far as possible, to redeem its currency apportioned to the members which have made agreements with the Fund under 3 above.

5. If a member has reached agreement with the Fund in accordance with 3 above, the Fund shall use the currencies of other members apportioned to that member under 2 (c) above to redeem the currency of that member apportioned to other members which have made agreements with the Fund under 3 above. Each amount so redeemed shall be redeemed in the currency of the member to which it was apportioned.

6. After carrying out the preceding paragraphs, the Fund shall pay to each member the remaining currencies held for its account.

7. Each member whose currency has been distributed to other members under 6 above shall redeem such currency in gold or, at its option, in the currency of the member requesting redemption, or in such other manner as may be agreed between them. If the members involved do not otherwise agree, the member obligated to redeem shall complete redemption within five years of the date of distribution, but shall not be required to redeem in any half-yearly period more than one-tenth of the amount distributed to each other member. If the member does not fulfill this obligation, the amount of currency which should have been redeemed may be liquidated in an orderly manner in any market.

8. Each member whose currency has been distributed to other members under 6 above guarantees the unrestricted use of such currency at all times for the purchase of goods or for payment of sums due to it or to persons in its territories. Each member so obligated agrees to compensate other members for any loss resulting from the difference between the par value of its currency on the date of the decision to liquidate the Fund and the value realized by such members on disposal of its currency.

Schedule F Designation

During the first basic period the rules for designation shall be as follows:

  • (a) Participants subject to designation under Article XXV, Section 5 (a) (i), shall be designated for such amounts as will promote over time equality in the ratios of the participants’ holdings of special drawing rights in excess of their net cumulative allocations to their official holdings of gold and foreign exchange.

  • (b) The formula to give effect to (a) above shall be such that participants subject to designation shall be designated:

    • (i) in proportion to their official holdings of gold and foreign exchange when the ratios described in (a) above are equal; and

    • (ii) in such manner as gradually to reduce the difference between the ratios described in (a) above that are low and the ratios that are high.

Schedule G Reconstitution

1. During the first basic period the rules for reconstitution shall be as follows:

  • (a) (i) A participant shall so use and reconstitute its holdings of special drawing rights that, five years after the first allocation and at the end of each calendar quarter thereafter, the average of its total daily holdings of special drawing rights over the most recent five-year period will be not / less than thirty percent of the average of its daily net cumulative allocation of special drawing rights over the same period.

    • (ii) Two years after the first allocation and at the end of each calendar month thereafter the Fund shall make calculations for each participant so as to ascertain whether and to what extent the participant would need to acquire special drawing rights between the date of the calculation and the end of any five-year period in order to comply with the requirement in (a) (i) above. The Fund shall adopt regulations with respect to the bases on which these calculations shall be made and with respect to the timing of the designation of participants under Article XXV, Section 5 (a) (ii), in order to assist them to comply with the requirement of (a) (i) above.

    • (iii) The Fund shall give special notice to a participant when the calculations under (a) (ii) above indicate that it is unlikely that the participant will be able to comply with the requirement in (a) (i) above unless it ceases to use special drawing rights for the rest of the period for which the calculation was made under (a) (ii) above.

    • (iv) A participant that needs to acquire special drawing rights to fulfill this obligation shall be obligated and entitled to obtain them, at its option for gold or currency acceptable to the Fund, in a transaction with the Fund conducted through the General Account. If sufficient special drawing rights to fulfill this obligation cannot be obtained in this way, the participant shall be obligated and entitled to obtain them with currency convertible in fact from a participant which the Fund shall specify.

  • (b) Participants shall also pay due regard to the desirability of pursuing over time a balanced relationship between their holdings of special drawing rights and their holdings of gold and foreign exchange and their reserve positions in the Fund.

2. If a participant fails to comply with the rules for reconstitution, the Fund shall determine whether or not the circumstances justify suspension under Article XXIX, Section 2 (b).

Schedule H Termination of Participation

1. If the obligation remaining after the setoff under Article XXX, Section 2 (b), is to the terminating participant and agreement on settlement between the Fund and the terminating participant is not reached within six months of the date of termination, the Fund shall redeem this balance of special drawing rights in equal half-yearly installments within a maximum of five years of the date of termination. The Fund shall redeem this balance as it may determine, either (a) by the payment to the terminating participant of the amounts provided by the remaining participants to the Fund in accordance with Article XXX, Section 5 or (b) by permitting the terminating participant to use its special drawing rights to obtain its own currency or currency convertible in fact from a participant specified by the Fund, the General Account, or any other holder.

2. If the obligation remaining after the setoff under Article XXX, Section 2 (b), is to the Fund and agreement on settlement is not reached within six months of the date of termination, the terminating participant shall discharge this obligation in equal half-yearly installments within three years of the date of termination or within such longer period as may be fixed by the Fund. The terminating participant shall discharge this obligation, as the Fund may determine, either (a) by the payment to the Fund of currency convertible in fact or gold at the option of the terminating participant, or (b) by obtaining special drawing rights, in accordance with Article XXX, Section 6, from the General Account or in agreement with a participant specified by the Fund or from any other holder, and the setoff of these special drawing rights against the installment due.

3. Installments under either 1 or 2 above shall fall due six months after the date of termination and at intervals of six months thereafter.

4. In the event of the Special Drawing Account going into liquidation under Article XXXI within six months of the date a participant terminates its participation, the settlement between the Fund and that government shall be made in accordance with Article XXXI and Schedule I.

Schedule I Administration of Liquidation of the Special Drawing Account

1. In the event of liquidation of the Special Drawing Account, participants shall discharge their obligations to the Fund in ten half-yearly installments, or in such longer period as the Fund may decide is needed, in currency convertible in fact and the currencies of participants holding special drawing rights to be redeemed in any installment to the extent of such redemption, as determined by the Fund. The first half-yearly payment shall be made six months after the decision to liquidate the Special Drawing Account.

2. If it is decided to liquidate the Fund within six months of the date of the decision to liquidate the Special Drawing Account, the liquidation of the Special Drawing Account shall not proceed until special drawing rights held in the General Account have been distributed in accordance with the following rule:

After the distribution made under 2 (a) of Schedule E, the Fund shall apportion its special drawing rights held in the General Account among all members that are participants in proportion to the amounts due to each participant after the distribution under 2 (a). To determine the amount due to each member for the purpose of apportioning the remainder of its holdings of each currency under 2 (c) of Schedule E, the Fund shall deduct the distribution of special drawing rights made under this rule.

3. With the amounts received under 1 above, the Fund shall redeem special drawing rights held by holders in the following manner and order:

  • (a) Special drawing rights held by governments that have terminated their participation more than six months before the date the Board of Governors decides to liquidate the Special Drawing Account shall be redeemed in accordance with the terms of any agreement under Article XX or Schedule H.

  • (b) Special drawing rights held by holders that are not participants shall be redeemed before those held by participants, and shall be redeemed in proportion to the amount held by each holder.

  • (c) The Fund shall determine the proportion of special drawing rights held by each participant in relation to its net cumulative allocation. The Fund shall first redeem special drawing rights from the participants with the highest proportion until this proportion is reduced to that of the second highest proportion; the Fund shall then redeem the special drawing rights held by these participants in accordance with their net cumulative allocations until the proportions are reduced to that of the third highest proportion; and this process shall be continued until the amount available for redemption is exhausted.

4. Any amount that a participant will be entitled to receive in redemption under 3 above shall be set off against any amount to be paid under 1 above.

5. During liquidation the Fund shall pay interest on the amount of special drawing rights held by holders, and each participant shall pay charges on the net cumulative allocation of special drawing rights to it less the amount of any payments made in accordance with 1 above. The rates of interest and charges and the time of payment shall be determined by the Fund. Payments of interest and charges shall be made in special drawing rights to the extent possible. A participant that does not hold sufficient special drawing rights to meet any charges shall make the payment with gold or a currency specified by the Fund. Special drawing rights received as charges in amounts needed for administrative expenses shall not be used for the payment of interest, but shall be transferred to the Fund and shall be redeemed first and with the currencies used by the Fund to meet its expenses.

6. While a participant is in default with respect to any payment required by 1 or 5 above, no amounts shall be paid to it in accordance with 2 or 5 above.

7. If after the final payments have been made to participants each participant not in default does not hold special drawing rights in the same proportion to its net cumulative allocation, those participants holding a lower proportion shall purchase from those holding a higher proportion such amounts in accordance with arrangements made by the Fund as will make the proportion of their holdings of special drawing rights the same. Each participant in default shall pay to the Fund its own currency in an amount equal to its default. The Fund shall apportion this currency and any residual claims among participants in proportion to the amount of special drawing rights held by each and these special drawing rights shall be cancelled. The Fund shall then close the books of the Special Drawing Account and all of the Fund’s liabilities arising from the allocations of special drawing rights and the administration of the Special Drawing Account shall cease.

8. Each participant whose currency is distributed to other participants under this Schedule guarantees the unrestricted use of such currency at all times for the purchase of goods or for payments of sums due to it or to persons in its territories. Each participant so obligated agrees to compensate other participants for any loss resulting from the difference between the value at which the Fund distributed its currency under this Schedule and the value realized by such participants on disposal of its currency.

Index to Articles of Agreement

  • Accounts (see also General Account; Special Drawing Account):

    • Audited statements, annual, Art. XII, Sec. 7 (a)

    • Settlement with withdrawing members, Art. XV, Sec. 3; Sched. D

  • Adjustment process, better working of taken into account in first decision to allocate special drawing rights, Art. XXIV, Sec. 1 (b)

  • Agencies of members dealing with Fund, Art. V, Sec. 1

  • Alternates; see Board of Governors; Executive Directors

  • Amendments:

    • Acceptance by all members required in certain cases, Art. XVII (b)

    • Arrangements with other international organizations which necessitate amendments, Art. X

    • Entry into force, Art. XVII (c); Art. XXIII, Sec. 1

    • Proposal, Art XVII (a)

    • Voting on, Art. XVII (a), (b)

  • American Republics, election of Executive Directors, Art. XII, Sec. 3 (b) (iii), (iv); Sched. C, par. 7

  • Annual Report; see Reports

  • Arbitration:

    • Disagreement arising during liquidation of Fund or upon withdrawal of member, Art. XVIII (c)

    • Disagreement arising from termination of participation in the Special Drawing Account or during liquidation of that Account, Art. XXVII (d)

  • Articles of Agreement:

    • Acceptance, Art. XX, Sec. 2 (a), (b), (g)

    • Amendments, Art. XVII

    • Deposit in archives of United States, Signature and depository clause, p. 132

    • Entry into force, Art. XX, Sec. 1

    • Instruments of acceptance to be deposited with Government of United States, Art. XX, Sec. 2 (a)

    • Interpretation, Art. XII, Sec. 2 (b) (viii); Art. XVIII; Art. XXVII (c)

    • Signature, Art. XX, Sec. 2

    • Transmission of certified copies to members, Signature and depository clause, p. 132

  • Assessments for expenses of conducting business of the Special Drawing Account:

    • Levy by the Fund, Art. XXVI, Sec. 4

    • Payment in special drawing rights, Art. XXVI, Sec. 5

    • Payment to General Account, Art. XXII, Sec. 2; Art. XXV, Sec. 7 (b) (ii)

    • Settlement on termination of participation in Special Drawing Account, Art. XXX, Sec. 2 (a)

  • Assets of Fund:

    • Distribution in event of liquidation, Sched. E, par. 1, 2

    • Freedom from restrictions, Art. IX, Sec. 6

    • Guarantee by each member, Art. XIII, Sec. 3

    • Holding of, Art. XIII, Sec. 2 (b)

    • Immunity of, Art. IX, Sec. 3, 4

    • Maintenance of gold value, Art. IV, Sec. 8; Art. XII, Sec. 2 (b) (iii)

    • Separation of assets held in General Account and Special Drawing Account, Art. XXII, Sec. 2

    • Audit; see Accounts

  • Balance of payments:

    • Criterion for designation of participants to provide currency for special drawing rights, Art. XXV, Sec. 5 (a) (i)

    • Furnishing of information concerning, Art. VIII, Sec. 5 (a) (vi)

    • Purpose of Fund to correct maladjustments and lessen disequilibrium, Art. I (v), (vi)

    • Report by Fund on serious disequilibrium in international balance of payments of members, Art. XII, Sec. 8

    • Taken into account in first decision to allocate special drawing rights, Art. XXIV, Sec. 1 (b)

    • Use of special drawing rights to meet balance of payments needs, Art. XXV, Sec. 3 (a)

    • Withdrawal of exchange restrictions by members when balance of payments appears satisfactory, Art. XIV, Sec. 2.

  • Basic periods for allocation or cancellation of special drawing rights:

    • Changes because of unexpected major developments, Art. XXIV, Sec. 3

    • Decisions by Fund, Art. XXIV, Sec. 2 (a), (c), (d), 4 (c) (ii)

    • Duration, Art. XXIV, Sec. 2 (a)

    • First, beginning date, Art. XXIV, Sec. 2 (a)

    • First, rules for designation, Sched. F

    • First, rules for reconstitution, Sched. G

    • New participants after basic period has started, Art. XXIV, Sec. 2 (d)

    • Proposals by Managing Director, procedure, Art. XXIV, Sec. 4

    • Review of rules for designation before end of each period, Art. XXV, Sec. 5 (c)

    • Review of rules for reconstitution before end of each period, Art. XXV, Sec. 6 (b)

  • Board of Governors:

    • Allocations and cancellations of special drawing rights, decisions on, Art. XXIV, Sec. 4 (a), (c), (d)

    • Alternate Governors, appointment by members, Art. XII, Sec. 2 (a)

    • Amendments to Articles of Agreement to be approved by, Art. XVII (a), (b)

    • Appointment by members, Art. XII, Sec. 2 (a)

    • Authority to increase number of Executive Directors to be elected, Art. XII, Sec. 3 (b)

    • Chairman, selection of, Art. XII, Sec. 2 (a)

    • Committee on Interpretation, Art. XVIII (b); Art. XXVII (c)

    • Compulsory withdrawal of members by decision of, Art. XV, Sec. 2 (b)

    • Delegation of authority to Executive Directors, Art. XII, Sec. 2 (b); Art. XXVII (a) (i)

    • Determination of part of net income to be placed to reserve and to be distributed, Art. XII, Sec. 6 (a)

    • Determination of remuneration paid Executive Directors, Art. XII, Sec. 2 (i)

    • Determination of salary and terms of service contract of Managing Director, Article XII, Sec. 2 (i)

    • Election of Executive Directors, Art. XII, Sec. 3 (b) (iii), (iv), 3 (c), (d); Sched. C

    • Expenses incurred in attending meetings, Art. XII, Sec. 2 (h)

    • Immunities of, Art. IX, Sec. 8

    • Inauguration of Fund, Art XX, Sec. 3 (a)

    • Initial subscription payments transmitted to, Art. XX, Sec. 2 (d)

    • Interpretation of Articles of Agreement, Art. XVIII (b); Art. XXVII (c)

    • Liquidation of Fund, decision on, Art. XVI, Sec. 2 (b); Art. XXXI (a)

    • Liquidation of Special Drawing Account, decision on, Art. XXXI (a), (b)

    • Meetings, annual and other, Art. XII, Sec. 2 (c); Art. XXVII (a) (ii)

    • Number of votes of each Governor, Art. XII, Sec. 2 (e), 5

    • Powers, Art. XII, Sec. 2 (a)

    • Powers that may not be delegated, Art. XII, Sec. 2 (b); Art. XXVII (a) (i)

    • Quorum for meetings, Art. XII, Sec. 2 (d); Art. XXVII (a) (ii)

    • Rules and regulations, adoption of, Art. XII, Sec. 2 (g)

    • Service without compensation, Art. XII, Sec. 2 (h)

    • Special Drawing Account, decisions exclusively pertaining to, Art. XXVII (a) (ii)

    • Temporary suspension of certain provisions by, Art. XVI, Sec. 1 (c)

    • Terms of service, Art. XII, Sec. 2 (a)

    • Vote without meeting, Art. XII, Sec. 2 (f)

  • Capital transactions:

    • Determination by Fund whether transactions to be considered current or capital transactions, Art. XIX (i)

    • Furnishing of information concerning, Art. VIII, Sec. 5 (a) (vi)

    • Use of Fund’s resources for, Art. VI, Sec. 1 (b) (i)

  • Capital transfers:

    • Controls of, Art. VI, Sec. 1, 3

    • Gold tranche purchases for, Art. VI, Sec. 2; Art. XVI, Sec. 1

    • Use of Fund’s resources for, Art. VI, Sec. 1, 2

    • Use of member’s own resources for, to be in accordance with purposes of Fund, Art. VI, Sec. 1 (b) (ii)

  • Central banks:

    • Agency dealing with Fund, Art. V, Sec. 1

    • Currency liabilities to, Sched. B, par. 6

    • Designation as depository for Fund’s holdings of currency, Art. XIII, Sec. 2 (a)

    • Holdings of member, Art. XIX (b)

    • Institutions that perform functions for more than one member, eligibility for prescription as holders of special drawing rights, Art. XXIII, Sec. 3

  • Charges:

    • Accruing after date of member’s withdrawal, Sched. D, par. 1

    • Gold tranche purchases, Art. V, Sec. 8 (a)

    • Handling charge on gold transactions, Art. V, Sec. 8 (b)

    • Net cumulative allocations of special drawing rights, Art. XXVI, Sec. 2, 3

    • Operations and transactions in special drawing rights through the General Account, Art. XXV, Sec. 7 (g)

    • Outstanding obligation held by terminating participant in Special Drawing Account, Art. XXX, Sec. 2 (a), 3

    • Payable in gold, Art. V, Sec. 8 (f); Art. XVI, Sec. 1

    • Payable in member’s currency, Art. V, Sec. 8 (f); Art. XVI, Sec. 1

    • Payable in special drawing rights, Art. XXV, Sec. 7 (c) (i); Art. XXVI, Sec. 5

    • Payment on net cumulative allocation of special drawing rights during liquidation of Special Drawing Account, Sched. I, par. 5

    • Rates payable when Fund’s holdings of member’s currency exceed quota, Art. V, Sec. 8 (c), (d), (e)

    • Rates, voting power required to change, Art. V, Sec. 8 (e)

    • Service, on exchange transactions, Art. V, Sec. 8 (a)

    • Settlement upon liquidation of Special Drawing Account, Art. XXXI (c)

  • Clearing arrangements, furnishing of information, Art. VIII, Sec. 5 (a) (xii)

  • Colonies: see Territories

  • Committee on Interpretation; see Board of Governors

  • Communications, official, privilege for, Art. IX, Sec. 7

  • Compensatory financing of export fluctuations, Art. XIX (j)

  • Consultations, Art. IV, Sec. 5 (b); Art. VIII, Sec. 6; Art. XIV, Sec. 4; Art. XXIV, Sec. 4 (b); Art. XXV, Sec. 8 (b)

  • Convertibility (see also Currency convertible in fact):

    • Currencies of members, Art. XIX (a), (d), (g)

    • Currencies of specified nonmembers, Art. XIX (a), (d)

    • Foreign-held balances, limitations on obligation of members, Art. VIII, Sec. 4 (b)

    • Foreign-held balances, obligation of members, Art. VIII, Sec. 4 (a)

  • Currencies (see also Convertibility; Currency convertible in fact; Par values; Scarce currencies):

    • Acceptable to the Fund, use to obtain special drawing rights, Art. XXVI, Sec. 5; Sched. G, par. 1 (a) (iv)

    • Computations relating to currencies to be on basis of par values, Art. IV, Sec. 1 (b)

    • Data members may be required to furnish, Art. VIII, Sec. 5

    • Definition, Art. XIX (d)

    • Depreciation, payment by member of amount equal to reduction in gold value of its currency held by Fund, Art. IV, Sec. 8 (b)

    • Designation of participants to provide currency for specified amounts of special drawing rights, Art. XXV, Sec. 5

    • Eligibility of members to purchase currency of other members from Fund, Art. XX, Sec. 4 (c), (d)

    • Exchange rates for operations and transactions in special drawing rights, Art. XXV, Sec. 8

    • Fund’s holdings of member’s currency, Art. III, Sec. 5; Art. XIII, Sec. 2 (a); Art. XIX (f)

    • Inclusion of holdings of currency with specified rights of conversion in calculation of monetary reserves, Art XIX (g)

    • Increase in par value, return by Fund of amount equal to increase in gold value of member’s currency held by Fund, Art. IV, Sec. 8 (c)

    • Liabilities, Sched. B, par. 6

    • Liquidation of Fund, Sched. E

    • Liquidation of Special Drawing Account, Sched. I

    • Non-members, Art. XIX (a), (d); Sched. B, par. 2

    • Obligation to provide on demand to participant using special drawing rights, Art. XXV, Sec. 4

    • Payment of remuneration in member’s own currency, Art. V, Sec. 9 (b)

    • Purchase from Fund for gold, Art. V, Sec. 6

    • Replenishment of Fund’s holdings of scarce currencies, Art. VII, Sec. 2; Art. XXV, Sec. 7 (d)

    • Repurchase of member’s currency held by Fund, Art. V, Sec. 7 (a), (b),(c); Sched. B

    • Separate currencies within member’s territories, Art. IV, Sec. 9; Art. XX, Sec. 4 (g)

    • Settlement with terminating participant in Special Drawing Account, Art. XXX, Sec. 4, 5, 6; Sched. H, par. 1

    • Special drawing rights, use to obtain currency, Art. XXV, Sec. 2, 5 (a)

    • Subscription payments, Art. III, Sec. 3 (c), (d), 4

    • Substitution of non-negotiable, non-interest bearing notes payable on demand or similar obligations, Art. III, Sec. 5

    • Withdrawing members, payment to, Sched. D

  • Currency convertible in fact:

    • Definition, Art. XXXII (b)

    • Entitlement of terminating participant to obtain to pay charges or assessments, Art. XXX, Sec. 3

    • Liquidation of Special Drawing Account, Sched. I, par. 1

    • Obligation and entitlement of participant to obtain to pay charges and assessments, Art. XXVI, Sec. 5

    • Obligation and entitlement of participant to use to obtain special drawing rights to fulfill reconstitution requirement, Sched. G, par. 1 (a) (iv)

    • Payment to Fund by terminating participant in Special Drawing Account, Sched. H, par. 2

    • Provision to participant using special drawing rights by participant designated by Fund, Art. XXV, Sec. 4

    • Settlement with terminating participant in Special Drawing Account, Art. XXX, Sec. 5, 6; Sched. H, par. 1

  • Current transactions:

    • Members may not exercise controls of capital transfers to restrict payments for, Art. VI, Sec. 3

    • Multilateral system of payments in respect of, Art. I (iv)

    • Payments for, definition, Art. XIX (i)

    • Restrictions on payments and transfers for, Art. VII, Sec. 3 (b); Art. VIII, Sec. 2, 4; Art. XIV, Sec. 2, 4

    • Customs duties, Fund’s immunity from, Art. IX, Sec. 9 (a)

  • Data; see Information

  • Definition of terms:

    • Central holdings, Art. XIX (b)

    • Currency, Art. XIX (d)

    • Currency convertible in fact, Art. XXXII (b)

    • Gold tranche purchase, Art. XIX (f)

    • Holdings of other official institutions or other banks, Art. XIX (c), (e)

    • Member’s holdings of convertible currencies, Art. XIX (d), (g)

    • Monetary reserves of member, Art. XIX (a), (e); Art. XXV, Sec. 7 (a)

    • Net cumulative allocation of special drawing rights, Art. XXXII (a)

    • Net official holdings, Art. XIX (h)

    • Official holdings of member, Art. XIX (b)

    • Payments for current transactions, Art. XIX (i)

    • Reserve position in the Fund, Art. XXXII (c)

  • Depositories:

    • Currency, designation by each member, Art. XIII, Sec. 2 (a)

    • Gold, designation by five members having largest quotas, Art. XIII, Sec. 2 (b)

    • Guarantee of assets resulting from failure or default of, Art. XIII, Sec. 3

    • Subscription payments to appropriate depository, Art. III, Sec. 3 (a)

  • Disagreements:

    • Arising between Fund and terminating participant or any participant during liquidation of Special Drawing Account, Art. XXVII (d)

    • Arising between Fund and withdrawn member or any member during liquidation of Fund, Art. XVIII (c)

    • As to initial par values, Art. XX, Sec. 4 (b)

  • Discriminatory currency arrangements, Art. VIII, Sec. 3

  • Disequilibrium (see also Balance of payments):

    • Change in par value to correct a fundamental disequilibrium, Art. IV, Sec. 5 (a), (f)

    • Purpose of Fund to lessen degree of disequilibrium in international balances of payments of members, Art. I (vi)

    • Report to members on serious disequilibrium in international balance of payments, Art. XII, Sec. 8

  • Dollars, United States; see United States dollars

  • Emergency provisions:

    • Liquidation of Fund, Art. XVI, Sec. 2

    • Temporary suspension of certain provisions of Fund Agreement, Art. XVI, Sec. 1 (a), (c)

    • Temporary suspension of provisions relating to special drawing rights, Art. XXIX, Sec. 1; Art. XXXI (a)

  • Enemy-occupied territories:

    • Adoption of new monetary unit, Art. XX, Sec. 4 (e)

    • Delay in deposit of instrument of acceptance of Agreement, Art. XX, Sec. 2 (h)

    • Initial determination of par values, Art. XX, Sec. 4 (a), (d)

    • Net official holdings of gold and U.S. dollars, Art. III, Sec. 3 (d)

    • Newly mined gold not included in monetary reserves, Sched. B, par. 4

    • Par values for separate currencies, Art. XX, Sec. 4 (g)

    • Restrictions on payments and transfers, introduction authorized where necessary, Art. XIV, Sec. 2

  • Exceptional circumstances, representations under, Art. XIV, Sec. 4

  • Exchange contracts, unenforceability, Art. VIII, Sec. 2 (b)

  • Exchange controls:

    • Control of capital transfers, Art. VI, Sec. 1 (a), 3

    • Cooperation between members to make exchange control regulations more effective, Art. VIII, Sec. 2 (b)

    • Furnishing of information on, Art. VIII, Sec. 5 (a) (xi)

  • Exchange rates, operations and transactions in special drawing rights, Art. XXV, Sec. 8 (see also Par values)

  • Exchange restrictions:

    • Adaptation to changing circumstances,

    • Art. XIV, Sec. 2 Administration of restrictions with respect to scarce currency, Art. VII, Sec. 4

    • Approval by Fund of, Art. VIII, Sec. 2 (a),4

    • Consultation between members to make adjustments for application of authorized restrictions, Art. VIII, Sec. 6

    • Consultations with Fund as to further retention by members, Art. XIV, Sec. 4

    • Effect of other international agreements on, Art. VII, Sec. 5

    • Elimination of foreign exchange restrictions which hamper the growth of world trade, Art. I (iv)

    • Introduction of, Art. XIV, Sec. 2

    • Maintenance of, Art. XIV, Sec. 2

    • On transactions with non-member countries, Art. XI, Sec. 2

    • Report, annual, Art. XIV, Sec. 4

    • Retention of, Art. XIV, Sec. 4

    • Scarce currency, formal declaration authorizing temporary exchange restrictions, Art. VII, Sec. 3 (b)

    • Transitional arrangements, Art. XIV, Sec. 2, 3; Art. XIX (d)

    • Transitional period, Art. XIV, Sec. 2, 4, 5

  • Exchange stability:

    • Obligation of members, Art. IV, Sec. 4

    • Purpose of Fund to promote, Art. I (iii)

  • Exchange transactions (see also Capital transactions; Current transactions; Foreign exchange):

    • Maximum and minimum rates for spot and other exchange transactions, Art. IV, Sec. 3

    • Member’s obligations with respect to exchange stability, Art. IV, Sec. 4

    • Required purchases of balances of member’s own currency held by another member, Art. VIII, Sec. 4

  • Exchange transactions of and with the Fund (see also Special drawing rights; Use of Fund’s resources):

    • Beginning, Art. III, Sec. 3 (b); Art. XX, Sec. 4 (a), (h)

    • Cessation of Fund transactions in case of liquidation, Art. XVI, Sec. 2 (b)

    • Cessation of Fund transactions in currency of withdrawing member, Art. XV, Sec. 3

    • Charges, Art. V, Sec. 8

    • Conditions governing use of Fund resources, Art. V, Sec. 3

    • Currency of member which has withdrawn, Sched. D, par. 5

    • Forward exchange transactions, Art. V, Sec. 3 (b)

    • Limitation on Fund’s operations and transactions, Art. V, Sec. 2

    • Postponement of exchange transactions with member, Art. XX, Sec. 4 (i)

    • Service charge, Art. V, Sec. 8 (a)

    • Summary statement at 3 months’ intervals, Art. XII, Sec. 7

    • Temporary suspension in case of liquidation of Fund, Art. XVI, Sec. 2 (a)

    • Temporary suspension of provisions of Agreement on, Art. XVI, Sec. 1

  • Executive Directors:

    • Additional appointed, Art. XII, Sec. 3 (c)

    • Alternate, appointment and powers, Art. XII, Sec. 3 (e)

    • Alternate, authority to exercise powers of former Director while office is vacant, Art. XII, Sec. 3 (f)

    • Alternate, immunities and privileges, Art. IX, Sec. 8, 9 (b)

    • Appointed, Art. XII, Sec. 3 (b) (i), (ii), 3 (c)

    • Authority to call meetings of Board of Governors, Art. XII, Sec. 2 (c)

    • Authority to suspend operation of provisions relating to special drawing rights, Art. XXIX, Sec. 1; Art. XXXI (a)

    • Chairman to be Managing Director, Art. XII, Sec. 4 (a)

    • Committees, Art. XII, Sec. 3 (k)

    • Continuous session, Executive Directors shall function in, Art. XII, Sec. 3 (g)

    • Decisions on matters pertaining exclusively to Special Drawing Account, Art. XXVII (a) (iii), (c)

    • Delegation of powers by Board of Governors, Art. XII, Sec. 2 (b); Art. XXVII (a) (i)

    • Election by new members, Art. XII, Sec. 3 (b)

    • Election of, Art. XII, Sec. 3 (d)

    • Elective, Art. XII, Sec. 3 (b) (iii), (iv); Sched. C

    • Immunities and privileges, Art. IX, Sec. 8

    • Immunity from tax on salaries, Art. IX, Sec. 9 (b)

    • Interpretation of Fund Agreement by, Art. XVIII (a), (b); Art. XXVII (c)

    • Meetings of, Art. XII, Sec. 3 (g)

    • Number of, Art. XII, Sec. 3 (b), (c)

    • Provisional Executive Directors, Art. XX, Sec. 3 (b), (c)

    • Quorum for meetings, Art. XII, Sec. 3 (h); Art. XXVII (a) (iii)

    • Remuneration, determination by Board of Governors, Art. XII, Sec. 2 (i)

    • Representation of member not entitled to appoint an Executive Director, Art. XII, Sec. 3 (j)

    • Responsibility for conduct of general operations of Fund, Art. XII, Sec. 3 (a)

    • Temporary suspension of certain provisions of Agreement, Art. XVI, Sec. 1

    • Vacancy in office of elected Executive Director, Art. XII, Sec. 3 (f)

    • Votes, number for each Executive Director, Art. XII, Sec. 3 (i), 5

    • Explanation of terms, Art. XIX; Art. XXXII (see also Definition of terms)

  • Financial year, relation to repurchases, Art. V, Sec. 7 (b); Sched. B

  • Fiscal agencies:

    • Currency liabilities to, Sched. B, par. 6

    • Dealing with the Fund, Art. V, Sec. 1

    • Obligation with respect to transactions with non-member, Art. XI, Sec. 1 (i)

    • Official holdings of member, Art. XIX (b)

  • Foreign exchange:

    • Dealings based on parity, Art. IV, Sec. 3, 4 (b); Art. XVI, Sec. 1

    • Holdings, relation to holdings of special drawing rights, Art. XXV, Sec. 3 (a); Sched. F, G, par. 1 (b)

  • Forward exchange transactions, member not entitled without permission to use Fund resources to hold against, Art. V, Sec. 3 (b)

  • Fund; see General Account; Operations; Organization and management

  • Fundamental disequilibrium; see Disequilibrium

  • Fund’s resources, use; see Use of Fund’s resources

  • General Account:

    • Administration, Art. XII; Art. XXVII Apportionment of special drawing rights in event of liquidation of Fund, Sched. I, par. 2

    • Decisions affecting operations and transactions, majorities required, Art. XXVII (a) (iv)

    • Establishment and operation, Introductory Article

    • Holding and use of special drawing rights, Art. XXIII, Sec. 2

    • Operations and transactions in special drawing rights, Art. XXV, Sec. 7

    • Separation from Special Drawing Account, Introductory Article; Art. XXII, Sec. 1, 2

    • Transactions by participants to obtain special drawing rights for payment of interest, charges, or assessments, Art. XXVI, Sec. 5

    • Transactions to assist participants to fulfill reconstitution requirement, Sched. G, par. 1 (a) (iv)

    • Transactions to facilitate settlement with terminating participant in Special Drawing Account, Art. XXX, Sec. 3, 6; Sched. H, par. 1, 2

  • Global need to supplement reserves, consideration in first decision to allocate special drawing rights, Art. XXIV, Sec. 1

  • Gold:

    • Charges payable to Fund in gold, Art. V, Sec. 8 (f); Art. XVI, Sec. 1

    • Data members required to furnish, Art. VIII, Sec. 5 (a) (i), (ii), (iii), (iv), (vi)

    • Depositories, Art. XIII, Sec. 2 (b)

    • Handling charges, Art. V, Sec. 8 (b)

    • Holdings, relation to holdings of special drawing rights, Sched. G, par. 1 (b)

    • Liquidation of Fund, Sched. E

    • Liquidation of Special Drawing Account, Sched. I, par. 5

    • Margins for transactions by members, Art. IV, Sec. 2

    • Member’s monetary reserves, Art. XIX (a)

    • Net official holdings of, Art. III, Sec. 3 (b) (ii), (d); Art. XIX (h)

    • Newly mined, Art. V, Sec. 6 (b); Sched. B, par. 4

    • Obligation of member to sell its currency to Fund for gold, Art. VII, Sec. 2 (ii)

    • Official holdings, Art. XIX (a); Art. XXV, Sec. 3 (a); Sched. F

    • Payment in gold in purchase of foreign-held balances, Art. VIII, Sec. 4 (a)

    • Payment in gold when quota is changed, Art. III, Sec. 4

    • Payment in remuneration on members’ creditor positions, Art. V, Sec. 9 (b)

    • Payment to terminating participant in Special Drawing Account, Sched. H, par. 2

    • Payment to withdrawing member, Sched. D, par. 2

    • Purchase of currencies from Fund for, Art. V, Sec. 6 (a)

    • Receipt by Fund from terminating participant, use by Fund to redeem special drawing rights held by participants, Art. XXX, Sec. 4, 5

    • Repurchase by a member of its currency, Art. V, Sec. 7; Art. XVI, Sec. 1

    • Settlement with terminating participant in Special Drawing Account, Art. XXX, Sec. 4, 5, 6; Sched. H, par. 2

    • Subscription to be paid in, Art. III, Sec. 3 (b), (d), 4; Art. XIX (h)

    • Transactions based on par values, Art. IV, Sec. 2, 4 (b); Art. XVI, Sec. 1

    • Transfer in an emergency, Art. XIII, Sec. 2 (b)

    • Transfer with regard to costs and requirements of Fund, Art. XIII, Sec. 2 (b)

    • Unit of value of special drawing rights, Art. XXI, Sec. 2

    • Use for obtaining special drawing rights, Art. XXVI, Sec. 5; Sched. G, par. 1 (a) (iv)

    • Value of Fund’s assets, maintenance, Art. IV, Sec. 8; Art. XII, Sec. 2 (b) (iii)

  • Gold tranche purchases:

    • Definition, Art. XIX (f)

    • Inclusion in reserve position in the Fund, Art. XXXII (c)

    • Not subject to challenge, Art. V, Sec. 3 (d)

    • Transactions, Art. V, Sec. 3 (a) (iii), (d); Art. VI, Sec. 2; Art. XVI, Sec. 1

  • Governors; see Board of Governors

  • Gross reserve position; see Holdings

  • Holdings:

    • Balanced distribution of participants’ special drawing rights, Art. XXV, Sec. 5 (a) (i), (b)

    • Balanced relationship between participants’ special drawing rights and gold and foreign exchange and reserve positions in Fund, Sched. G, par. 1 (b)

    • Central, Art. XIX (b), (h); Sched. B, par. 6

    • Convertible currencies of members, Art. XIX (d), (g)

    • Depositories for Fund’s holdings, Art. XIII, Sec. 2

    • Distribution in event of liquidation of Fund, Sched. E

    • Freedom of Fund’s holdings from restrictions, Art. IX, Sec. 6

    • Fund’s holdings of currency of a member, Art. III, Sec. 5; Art. XIII, Sec. 2 (a); Art. XIX (f)

    • Gold value of Fund’s holdings, maintenance, Art. IV, Sec. 8; Art. XII, Sec. 2 (b) (iii)

    • Gross reserve position, Art. XXIV, Sec. 2 (f); Art. XXV, Sec. 5 (a) (i)

    • Guarantee by members of Fund’s holdings, Art. XIII, Sec. 3

    • Immunities of Fund’s holdings, Art. IX, Sec. 3, 4

    • Net, for calculation of monetary reserves, Sched. B, par. 6

    • Net official, for calculation of gold subscriptions, Art. III, Sec. 3 (b), (d); Art. XIX (h)

    • Official, of gold and foreign exchange, ratio to special drawing rights in designation of participants, Sched. F

    • Official, of gold, foreign exchange, and special drawing rights, requirement of need to use special drawing rights, Art. XXV, Sec. 3 (a)

    • Official, of member, Art. XIX (a), (b)

    • Other official institutions or other banks, Art. XIX (c), (e), (h); Sched. B, par. 6

    • Special drawing rights, changes in holdings, Art. XXII, Sec. 3

  • Immunities; see Status, immunities and privileges

  • Inauguration of the Fund, Art. XX, Sec. 3 Income of the Fund, net, distribution, Art. XII, Sec. 2 (b) (v), 6

  • Information:

    • Members may be required to furnish, Art. VIII, Sec. 5

    • Members required to furnish data for determination of net official holdings, Art. III, Sec. 3 (b)

    • Participants in Special Drawing Account may be required to furnish, Art. XXII, Sec. 3

  • Interest on special drawing rights:

    • Accrued, payment upon liquidation of Special Drawing Account, Art. XXXI (c)

    • Accrued, settlement on termination of participation in Special Drawing Account, Art. XXX, Sec. 2 (a)

    • Outstanding balance held by terminating participant, Art. XXX, Sec. 3

    • Payment during liquidation of Special Drawing Account, Sched. I, par. 5

    • Payment in special drawing rights, Art. XXVI, Sec. 5

    • Payment to holders of special drawing rights, Art. XXVI, Sec. 1

    • Rates, Art. XXVI, Sec. 3

  • International agreements:

    • Consultation between members regarding, Art. VIII, Sec. 6

    • Effect on restrictions, Art. VII, Sec. 5

    • Mutual accord for cooperation in exchange controls, Art. VIII, Sec. 2 (b)

  • International organizations, arrangements for cooperation with, Art. X; Art. XII, Sec. 2 (b) (iv)

  • International payments; see Balance of payments; Current transactions

  • Interpretation of Fund Agreement:

    • Appeals from decisions of Executive Directors, authority of Board of Governors, Art. XII, Sec. 2 (b) (viii)

    • Arbitration of disagreement between Fund and withdrawing member or member during liquidation of Fund, Art. XVIII (c)

    • Committee on Interpretation, Art. XVIII (b)

    • Decision of Executive Directors, Art. XVIII (a)

    • Explanation of terms, Art. XIX; Art. XXXII

    • Final decision by Board of Governors, Art. XVIII (b)

    • Matters pertaining exclusively to Special Drawing Account, Art. XXVII (c)

    • Questions arising between a member and the Fund or between members, Art. XVIII (a)

  • Investments, foreign:

    • Information on international investment position to be furnished by member, Art. VIII, Sec. 5 (a) (vii)

    • Payments for current transactions relating to, Art. XIX (i)

  • Latin America; see American Republics

  • Liquidation of Fund:

    • Account of withdrawn members, Sched. D, par. 7

    • Administration of, Sched. E; Sched. I, par. 2

    • Decision by Board of Governors to cover both General Account and Special Drawing Account, Art. XXXI (a)

    • Decision of Board of Governors on, Art. XII, Sec. 2 (b) (vii); Art, XVI, Sec. 2; Art. XXXI (a)

    • Disagreement during, Art. XVIII (c)

  • Liquidation of Special Drawing Account:

    • Administration, Art. XXXI (d); Sched. I

    • Decision of Board of Governors, Art. XXXI (a), (b)

    • Discharge of obligations to the Fund, Sched. I, par. 1

    • Distribution of currency to other participants, Sched. I, par. 7, 8

    • Liquidation of the Fund within six months of decision to liquidate Special Drawing Account, Sched. I, par. 2

    • Payment of interest during liquidation, Sched. I, par. 5

    • Redemption by Fund of special drawing rights of holders, Art. XXXI (c); Sched. I, par. 3, 7

    • Temporary suspension of allocations or cancellations and transactions in special drawing rights in emergency, Art. XXXI (a)

  • Maintenance of gold value of Fund’s assets, Art. IV, Sec. 8; Art. XII, Sec. 2 (b) (iii)

  • Managing Director:

    • Chairman of Executive Directors, Art. XII, Sec. 4 (a)

    • Chief of Fund operating staff, Art. XII, Sec. 4 (b)

    • Duty to Fund, Art. XII, Sec. 4 (c)

    • Immunities and privileges, Art. IX, Sec. 8, 9 (b)

    • Participation in meetings of Board of Governors, Art. XII, Sec. 4 (a)

    • Proposals for allocation or cancellation of special drawing rights, procedures, Art. XXIV, Sec. 4

    • Salary and terms of contract of service determined by Board of Governors, Art. XII, Sec. 2 (i)

    • Selection by the Executive Directors, Art. XII, Sec. 4 (a)

    • Subject to general control of Executive Directors, Art. XII, Sec. 4 (b)

    • Vote of, Art. XII, Section 4 (a)

  • Margins:

    • Foreign exchange transactions, Art. IV, Sec. 3

    • Gold transactions, Art. IV, Sec. 2

  • Meetings:

    • Board of Governors, first, Art. XX, Sec. 3 (a)

    • Board of Governors, provisions for annual and other, Art. XII, Sec. 2 (c)

    • Board of Governors, quorum, Art. XII, Sec. 2 (d); Art. XXVII (a) (ii)

    • Executive Directors, quorum, Art. XII, Sec. 3 (h); Art. XXVII (a) (iii)

  • Members (see also Holdings; Obligations of members):

    • Acceptance of membership, effective date, Art. XX, Sec. 2 (b)

    • Acceptance of membership in accordance with member’s law, Art. XX, Sec. 2 (a)

    • Action by member to make effective in terms of its law the status, immunities and privileges of Fund, Art. IX, Sec. 10

    • Agencies dealing with Fund, Art. V, Sec. 1

    • Allocations of special drawing rights to member becoming a participant after start of basic period, Art. XXIV, Sec. 2 (d)

    • Amendments to Fund Agreement, requirements for acceptance, Art. XVII

    • Communication of views of Fund to members, Art. XII, Sec. 8

    • Consent of, required for change in quota, Art. III, Sec. 2

    • Consultations between members regarding existing international agreements, Art. VIII, Sec. 6

    • Instrument of acceptance of Fund Agreement, deposit by, Art. XX, Sec. 1, 2 (a), (b), (c), (h)

    • Instrument of participation in Special Drawing Account, Art. XXIII, Sec. 1

    • New members, conditions of admission, Art. II, Sec. 2; Art. XII, Sec. 2 (b) (i)

    • Non-participants in Special Drawing Account, prescription as holders of special drawing rights, Art. XXIII, Sec. 3

    • Original members, Art. II, Sec. 1; Art. XX, Sec. 2 (e); Sched. A

    • Representation at Executive Board meetings of members not entitled to appoint a Director, Art. XII, Sec. 3 (f), 8; Art. XVIII (a)

    • Right to participate in Special Drawing Account, Introductory Article

    • Signature of Articles of Agreement, Art. XX, Sec. 1, 2

    • Withdrawal, arbitration of disagreements, Art. XVIII (c)

    • Withdrawal, compulsory, Art. XII, Sec. 2 (b) (vi); Art. XV, Sec. 2 (b), (c)

    • Withdrawal, member deemed to have withdrawn if no agreement on par value, Art. XX, Sec. 4 (b)

    • Withdrawal, right of members to, Art. XV, Sec. 1; Art. XVII (b) (i)

    • Withdrawal, simultaneous termination of participation in Special Drawing Account, Art. XXX, Sec. 1 (b)

    • Withdrawing member, settlement of accounts with, Art. XV, Sec. 3; Sched. D

  • Monetary reserves:

    • Bearing on whether charges are paid in gold, Art. V, Sec. 8 (f)

    • Calculation, no account taken of increase or decrease due to allocations or cancellations of special drawing rights, Art. XXV, Sec. 7 (a)

    • Definition, Art. XIX (a)

    • Methods of calculation, Art. XIX (e), (g); Sched. B, par. 3, 5, 6

    • Relation to changes in quotas, Art. III, Sec. 4

    • Use to repurchase member’s currency held by Fund, Art. V, Sec. 7 (b), (c); Sched. B, par. 1

  • Monetary unit, new, adoption by member whose metropolitan territories have been occupied by the enemy, Art. XX, Sec. 4 (e)

  • Multilateral system of payments in respect of current transactions, Fund’s purpose to assist in establishment of, Art. I (iv)

  • Multiple currency practices, no member shall engage in except as authorized by Agreement or approved by Fund, Art. VIII, Sec. 3

  • Negative balances of special drawing rights: Cancellation of special drawing rights, Art. XXIV, Sec. 2 (f)

    • Charges paid to Fund on, Art. XXVI, Sec. 2

    • Designation of participant to provide currency to reduce, Art. XXV, Sec. 5 (a) (ii)

    • Use of special drawing rights to prevent or reduce, Art. XXV, Sec. 3 (c), 7 (e)

  • Net cumulative allocation of special drawing rights, definition, Art. XXXII (a) (see also Special drawing rights, allocation and cancellation) Net income, distribution, Art. XII, Sec. 2 (b) (v), 6

  • Net official holdings:

    • Definition, for purpose of subscription payments, Art. XIX (h)

    • Determination, Art. III, Sec. 3 (d)

    • Gold and U.S. dollars, basis of subscription payments, Art. III, Sec. 3 (b)

  • Non-member countries:

    • Currencies, holdings by members, Art. XIX (a), (d); Sched. B, par. 6

    • Fund shall not acquire in repurchase currency of, Sched. B, par. 2

    • Prescription as holders of special drawing rights, Art. XXIII, Sec. 3

    • Restrictions on transactions with, Art. XI, Sec. 2

    • Undertakings regarding relations with, Art. XI, Sec. 1; Art. XVI, Sec. 1

  • Obligations of members:

    • Assets of Fund, obligation to guarantee against loss, Art. XIII, Sec. 3

    • Avoidance of discriminatory currency practices, Art. VIII, Sec. 3

    • Avoidance of restrictions on current payments, Art. VIII, Sec. 2

    • Competitive exchange alterations, obligation to avoid, Art. IV, Sec. 4 (a)

    • Consultation between members regarding existing international agreements, Art. VIII, Sec. 6

    • Consultation with Fund as to retention of exchange restrictions, Art. XIV, Sec. 4

    • Consultation with Fund on changes in par values, Art. IV, Sec. 5 (b)

    • Convertibility of foreign-held balances, Art. VIII, Sec. 4

    • Depository, obligation to designate, Art. XIII, Sec. 2 (a)

    • Discriminatory currency arrangements, Fund approval required, Art. VIII, Sec. 3

    • Exchange arrangements, orderly, obligation to maintain, Art. IV, Sec. 4 (a)

    • Exchange stability, obligation to promote, Art. IV, Sec. 4 (a)

    • Failure of member to fulfill, Art. XV, Sec. 2 (a), (b)

    • Fiscal agency, obligation to deal with Fund only through, Art. V, Sec. 1

    • Furnishing of information, Art. VIII, Sec. 5

    • Liquidation of Fund, Sched. E, par. 7, 8

    • Multiple currency practices, Fund approval required, Art. VIII, Sec. 3

    • Notification to Fund concerning transitional arrangements, Art. XIV, Sec. 3

    • Relations with non-member countries, Art. XI

    • Repurchase obligations, Art. V, Sec. 7 (b), (c); Sched. B

    • Restrictions on current payments, Fund approval required, Art. VIII, Sec. 2 (a)

  • Obligations of participants in Special Drawing Account:

    • Failure to fulfill, Art. XXIX, Sec. 2

    • General obligations, Art. XXVIII

    • Instrument setting forth undertaking by participants, Art. XXIII, Sec. 1

    • Liquidation of Special Drawing Account, Art. XXXI (c)

    • Reconstitution of holdings, Art. XXV, Sec. 6; Sched. G

    • Requirement of need, Art. XXV, Sec. 3, 5 (a) (ii)

    • Termination of participation, settlement, Art. XXX, Sec. 4, 5

    • To provide currency for special drawing rights, Art. XXV, Sec. 4; Art. XXIX, Sec. 2 (d)

    • To receive allocations of special drawing rights, Art. XXIV, Sec. 2 (e)

  • Offices, location of, Art. XIII, Sec. 1

  • Operations (see also Exchange transactions of and with the Fund):

    • Allocation and cancellation of special drawing rights, Art. XXIV

    • Beginning of exchange transactions, Art. XX, Sec. 4 (a), (h); Art. III, Sec. 3 (b)

    • Inauguration of the Fund, Art. XX, Sec. 3

    • Limitation on Fund operations, Art. V, Sec. 2; Art. XVI, Sec. 1

    • Postponement of exchange transactions, Art. XX, Sec. 4 (i)

    • Separation of operations and transactions of Special Drawing Account and General Account, Introductory Article; Art. XXII

    • Temporary suspension of all transactions, Art. XVI, Sec. 2

    • Temporary suspension of operation of certain provisions of Agreement, Art. XVI, Sec. 1; Art. XXIX, Sec. 1

  • Organization and management:

    • Board of Governors, Art. XII, Sec. 2

    • Communication of views to members, Art. XII, Sec. 8

    • Executive Directors, Art. XII, Sec. 3

    • General Account and Special Drawing Account, Introductory Article; Art. XXVII

    • Location of offices, Art. XIII, Sec. 1

    • Managing Director, Art. XII, Sec. 1, 4

    • Publication of reports, Art. XII, Sec. 7

    • Staff, Art. XII, Sec. 1, 4

    • Status, immunities and privileges, Art. IX; Art. XXVII (b)

    • Structure of the Fund, Art. XII, Sec. 1

    • Voting of members, Art. XII, Sec. 5

  • Overseas territories; see Territories

  • Par values:

    • Amendments modifying provision for change in par value, Art. XVII (b) (iii)

    • Changes in, authorized, Art. IV, Sec. 5

    • Changes in, unauthorized, effect of, Art. IV, Sec. 6

    • Communication of, Art. XX, Sec. 4

    • Expression in terms of gold and U.S. dollars, Art. IV, Sec. 1 (a)

    • Foreign exchange dealings based on, Art. IV, Sec. 3, 4 (b)

    • Gold purchases and sales based on parity, Art. IV, Sec. 2

    • Initial determination of, Art. XX, Sec. 4

    • New monetary units in territories formerly occupied by the enemy, Art. XX, Sec. 4 (e)

    • Separate currencies within a member’s territories, Art. IV, Sec. 9

    • Uniform changes, Art. IV, Sec. 7, 8; Art. XII, Sec. 2 (b) (iii)

  • Participants in Special Drawing Account (see also Obligations of participants in Special Drawing Account; Special Drawing Account):

    • Allocations to members that become participants after start of a basic period, Art. XXIV, Sec. 2 (d)

    • Broad support for allocation and cancellation of special drawing rights to be ascertained, Art. XXIV, Sec. 4 (b)

    • Consultation on procedure for determining rates of exchange for their currency, Art. XXV, Sec. 8 (b)

    • Definition, Art. XXIII, Sec. 1

    • Deposit of instrument of undertaking, Art. XXIII, Sec. 1

    • Designation rules, review, Art. XXV, Sec. 5 (c)

    • Designation to provide currency for special drawing rights, Art. XXV, Sec. 5; Sched. F

    • Failure to fulfill expectation in use of special drawing rights, Art. XXV, Sec. 3 (b),(c), 5 (a) (ii), 7 (e); Art. XXIX, Sec. 2 (b)

    • General obligations, Art. XXVIII

    • In default at time of liquidation, Sched. I, par. 6, 7

    • Obligation to provide currency for special drawing rights, Art. XXV, Sec. 4; Art. XXIX, Sec. 2 (d)

    • Reconstitution obligation, Art. XXV, Sec. 6; Sched. G

    • Requirement of need, Art. XXV, Sec. 3

    • Reserve position in the Fund, definition, Art. XXXII (c)

    • Specified by Fund to provide currency or gold to redeem special drawing rights held by terminating participant, Art. XXX, Sec. 5

    • Specified by Fund to provide special drawing rights to permit another participant to meet certain obligations, Art. XXVI, Sec. 5; Sched. G, par. 1 (a) (iv)

    • Specified by Fund to provide special drawing rights to terminating participant, Art. XXX, Sec. 3

    • Termination of participation, Art. XXX; Sched. H

    • Transactions between participants, Art. XXV, Sec. 2

    • Transactions with other holders of special drawing rights, Art. XXIII, Sec. 3

    • Use of special drawing rights to meet balance of payments needs, Art. XXV, Sec. 3 (a)

    • Use of special drawing rights without fulfilling expectation of requirement of need, Art. XXV, Sec. 3 (c)

  • Payments; see Balance of payments; Current transactions

  • Permanent Court of International Justice, arbitration, appointment of an umpire by, Art. XVIII (c)

  • Price indices, furnishing of information concerning, Art. VIII, Sec. 5 (a) (ix)

  • Privileges; see Status, immunities and privileges

  • Purchase transactions; see Exchange transactions of and with the Fund; Use of Fund’s resources

  • Purposes of the Fund:

    • Capital movement in accordance with, Art. VI, Sec. 1 (b) (ii)

    • Policies and decisions to be guided by, Art. I

    • Principles governing allocation and cancellation of special drawing rights to promote attainment of, Art. XXIV, Sec. 1 (a)

    • Statement of, Art. I

    • Use of Fund’s resources contrary to, Art. V, Sec. 5

    • Use of Fund’s resources to be in accordance with, Art. V, Sec. 3 (c)

  • Quorum; see Meetings

  • Quotas (see also Subscriptions):

    • Adjustment of, Art. III, Sec. 2; Art. XII, Sec. 2 (b) (ii)

    • Amendments modifying provision for change in member’s quota, Art. XVII (b) (ii)

    • Basis for allocation and cancellation of special drawing rights, Art. XXIV, Sec. 2 (b)

    • Consent of member required for change, Art. III, Sec. 2; Art. XVII (b) (ii)

    • Increases, additional subscription payments, Art. III, Sec. 4 (a)

    • Original members, Art. III, Sec. 1; Sched. A

    • Other members, Art. III, Sec. 1

    • Reduction, payment by Fund to member, Art. III, Sec. 4 (b)

    • Review of all quotas at intervals of not more than five years, Art. III, Sec. 2

    • Revision, approval by Board of Governors, Art. XII, Sec. 2 (b) (ii)

  • Reconstitution of holdings of special drawing rights:

    • Failure to comply with rules, Sched. G, par. 2

    • Obligation of participant, Art. XXV, Sec. 6; Sched. G

    • Obtaining currency to promote, Art. XXV, Sec. 2 (b) (ii), 5 (a) (ii); Sched. G, par. 1 (iv)

    • Participant specified to provide special drawing rights to permit another participant to meet reconstitution obligation, Sched G, par. 1 (a) (iv)

    • Rules for first basic period, Sched. G, par. 1

    • Rules, review, Art. XXV, Sec. 6 (b)

    • Special drawing rights held in General Account, availability for reconstitution, Art. XXV, Sec. 7 (e)

  • Relief and reconstruction, Fund not intended to provide facilities for, Art. XIV, Sec. 1

  • Remuneration on members’ creditor positions:

    • Payment on amount by which 75 per cent of a member’s quota exceeded average of Fund’s holdings of the member’s currency, Art. V, Sec. 9

    • Relationship to distribution of net income, Art. XII, Sec. 6 (b)

  • Replenishment of Fund’s holdings of currency; see Scarce currencies

  • Reports:

    • Annual report, Art. XII, Sec. 7 (a)

    • Audited statement of accounts, Art. XII, Sec. 7 (a)

    • Exchange restrictions, annual report on, Art. XIV, Sec. 4

    • General scarcity of currency, report on, Art. VII, Sec. 1

    • Holdings by Fund of gold and of currencies of members, report to be issued, Art. XII, Sec. 7 (a)

    • Other reports deemed desirable, Art. XII, Sec. 7 (b)

    • Publication of report made to member regarding its economic conditions which tend to produce disequilibrium in members’ balance of payments, Art. XII, Sec. 8

    • Summary statement of transactions, Art. XII, Sec. 7 (a)

  • Repurchases of currency held by the Fund:

    • Acceptance of special drawing rights, Art. XXV, Sec. 7 (b) (i), 7 (c) (ii)

    • Conditions governing repurchase, Art. V, Sec. 7 (b), (c), (d); Art. XVI, Sec. 1; Sched. B

    • Revision of provisions, Art. V, Sec. 7 (d); Art. XII, Sec. 2 (b) (ix)

    • Right to repurchase own currency from the Fund, Art. V, Sec. 7 (a)

  • Reserve position in the Fund, Art. XXV, Sec. 3 (a); Art. XXXII (c); Sched G, par. 1 (b)

  • Reserves of the Fund:

    • Placement of net income to, Art. XII, Sec. 6

    • Transfers to general reserve from any special reserve, Art. XII, Sec. 2 (b) (x), 6 (c)

  • Restrictions on payments and transfers; see Exchange restrictions

  • Rules and regulations, adoption by Board of Governors and Executive Directors, Art. XII, Sec. 2 (g)

  • Scarce currencies:

    • Administration of restrictions, Art. VII, Sec. 4

    • Effect of other international agreements on restrictions, Art. VII, Sec. 5

    • Exception to obligation of member not to impose restrictions on current international transactions, Art. VIII, Sec. 2 (a)

    • Exception to obligation of member to buy balances of currency held by another member, Art. VIII, Sec. 4 (b) (iv)

    • Formal declaration of scarcity of Fund’s holdings of a member’s currency, Art. VII, Sec. 3

    • Measures to replenish Fund’s holdings of scarce currencies, Art. VII, Sec. 2; Art. XXV, Sec. 7 (d)

    • Relation to use of Fund’s resources Art. V, Sec. 3 (a) (ii)

    • Report on general scarcity of a particular currency to be issued by Fund, Art. VII, Sec. 1

  • Securities:

    • Inclusion in Fund’s holdings, Art. XIX (f) Substitution for currency, Art. III, Sec. 5

  • Separate currencies; see Par values

  • Service charges; see Charges

  • Special Drawing Account (see also Obligations of participants in Special Drawing Account; Participants in Special Drawing Account):

    • Administration, Art. XXII; Art. XXVII

    • Decisions affecting operations and transactions, majorities required, Art. XXVII (a) (iv)

    • Entry into force, Art. XXIII, Sec. 1

    • Establishment and functions, Introductory Article

    • Expenses of conducting business, reimbursement to General Account, Art. XXII, Sec. 2; Art. XXV, Sec. 7 (b) (ii); Art. XXVI, Sec. 4, 5

    • General obligations of participants, Art. XXVIII

    • Interest and charges, Art. XXVI; Art. XXX, Sec. 3

    • Liquidation, Art. XXXI; Sched. I

    • Participants, Art. XXIII, Sec. 1

    • Right of members to participate, Introductory Article

    • Separation from General Account, Introductory Article; Art. XXII, Sec. 1, 2

    • Suspension of operations in event of emergency or unforeseen circumstances, Art. XXIX, Sec. 1

    • Termination of participation, Art. XXX; Sched. H

  • Special drawing rights (see also Charges; Interest on special drawing rights; Special Drawing Account):

    • Allocation and cancellation, Art. XXIV

    • Authority of Fund to allocate, Art. XXI, Sec. 1

    • Basic periods for allocation and cancellation, Art. XXIV, Sec. 2, 3, 4; Art. XXV, Sec. 5 (c), 6 (b); Sched. F, G

    • Entitlement and obligation of participants to obtain from Fund to fulfill reconstitution obligation, Sched. G, par. 1 (a) (iv)

    • Entitlement and obligation of participants to obtain from Fund to pay charges or assessments, Art. XXVI, Sec. 5

    • Entitlement of participant to use to obtain currency, Art. XXV, Sec. 2

    • Exchange rates for operations and transactions between participants, Art. XXV, Sec. 8

    • First decision to allocate, Art. XXIV, Sec. 1 (b), 2 (a), 4 (b)

    • General Account as holder, Art. XXIII, Sec. 2; Art. XXV, Sec. 7

    • Immunity from taxation, Art. XXVII (b)

    • Inclusion in members’ monetary reserves, Art. XXV, Sec. 7 (a)

    • Negative balances, Art. XXIV, Sec. 2 (f); Art. XXV, Sec. 3 (c), 5 (a) (ii), 7 (e); XXII, Sec. 3

    • Net cumulative allocation, definition, Art. XXXII (a)

    • Nonacceptance of allocation (opting out), Art. XXIV, Sec. 2 (e)

    • Other holders, Art. XXIII, Sec. 3

    • Principles and considerations governing allocation and cancellation, Art. XXIV, Sec. 1

    • Proper use, obligations of participants to collaborate with Fund, Art. XXVIII

    • Rates for allocation and cancellation, Art. XXIV, Sec. 2 (b), 3, 4 (c) (iii), 4 (d)

    • Reconstitution of holdings, Art. XXV, Sec. 6; Sched. G

    • Recording of changes in holdings, Art. XXII, Sec. 3

    • Redemption by Fund of special drawing rights held by a terminating participant, Art. XXX, Sec. 2 (b), 6

    • Redemption in event of liquidation, Sched. I, par. 1, 2, 3, 4

    • Requirement of need, Art. XXV, Sec. 3

    • Suspension of transactions, Art. XXIX

    • Termination of effect of non-acceptance (opting back in), Art. XXIV, Sec. 2 (e)

    • Unexpected major developments, Art. XXIV, Sec. 3

    • Unit of value, Art. XXI, Sec. 2

    • Use for payment of interest, charges and assessments, Art. XXVI, Sec. 5; Art. XXX, Sec. 2 (a)

    • Use in operations and transactions authorized by Agreement, Art. XXV, Sec. 1

    • Use in replenishment of holdings of currency in General Account, Art. XXV, Sec. 7 (d)

    • Use in transactions between participants, Art. XXV, Sec. 2, 8

  • Spot exchange transactions, permissible margins for transactions between currencies of members within their territories, Art. IV, Sec. 3

  • Stabilization fund:

  • Agency dealing with Fund, Art. V, Sec. 1 Currency liabilities to, Sched. B, par. 6 Holdings of member, Art. XIX (b)

  • Staff:

    • Appointment and organization, Art. XII, Sec. 4 (b), (d)

    • Duty to the Fund, Art. XII, Sec. 4 (c)

    • Immunities and privileges, Art. IX, Sec. 8, 9 (b)

    • Managing Director, chief of operating staff, Art. XII, Sec. 4 (b)

    • Provision for, Art. XII, Sec. 1

  • Status, immunities and privileges:

    • Accord to Fund in territories of each member, Art. IX, Sec. 1

    • Action by each member in its own ter-tories, Art. IX, Sec. 10

    • Freedom of assets from restrictions, Art. IX, Sec. 6

    • Immunities and privileges of officers and employees, Art. IX, Sec. 8

    • Immunities from taxation, Art. IX, Sec. 9; Art. XXVII (b)

    • Immunity from judicial process, Art. IX, Sec. 3

    • Immunity from other action, Art. IX, Sec. 4

    • Immunity of archives, Art. IX, Sec. 5

    • Juridical personality of Fund, Art. IX, Sec. 2

    • Privilege for communications, Art. IX, Sec. 7

    • Status of Fund, Art. IX, Sec. 2

  • Subscriptions (see also Quotas):

    • Adjustment in currency payments when value of currency has increased or depreciated, Art. IV, Sec. 8

    • Amount to be transmitted to U.S. Government when Agreement is signed for establishment of Fund, Art. XX, Sec. 2 (d)

    • Decisions on payment, or mitigating effects of payment, of quota increases resulting from a general review, Art. III, Sec. 4 (c); Art. XII, Sec. 2 (b) (ii)

    • Equal to member’s quota, Art. III, Sec. 3 (a)

    • Payment in gold, Art. III, Sec. 3 (b)

    • Payment in member’s currency, Art. III, Sec. 3 (c)

    • Payments when quotas are changed, Art. III, Sec. 4

    • Place and time of payment, Art. III, Sec. 3 (a)

    • Repayment in case of liquidation, Sched. E, par. 1

  • Suspension of transactions:

    • All transactions, Art. XVI, Sec. 2 (a)

    • In event of emergency or unforeseen circumstances, Art. XVI, Sec. 1; Art. XXIX, Sec. 1

    • Participant that has failed to comply with rules for reconstitution of special drawing rights, Sched. G, par. 2

    • Participant that has failed to fulfill obligations with respect to special drawing rights, Art. XXIX, Sec. 2

  • Taxation, immunities from, Art. IX, Sec. 9; Art. XXVII (b)

  • Termination of participation in Special Drawing Account, Art. XXX; Sched. H

  • Territories (see also Enemy-occupied territories):

    • Acceptance of Fund Agreement in respect of, Art. XX, Sec. 2 (g)

    • Changes in par value of separate currency, Art. IV, Sec. 9

    • Par value of separate currencies in territories, Art. XX, Sec. 4 (g)

    • Prevention by members of transactions contrary to Fund Agreement, Art. XI, Sec. 1

    • Unenforceability of exchange contracts in, Art. VIII, Sec. 2 (b)

  • Trade, international, facilitation of expansion and balanced growth, Art. I (ii)

  • Transitional arrangements, Art. XIV, Sec. 2, 3, 5; Art. XIX (d), (g)

  • Transitional period:

    • Annual report on exchange restrictions, Art. XIV, Sec. 4

    • Calculation of monetary reserves, Art. XIX (g)

    • Consultations, annual, on restrictions in force, Art. XIV, Sec. 4

    • Nature of, Art. XIV, Sec. 5

    • Notification to the Fund, Art. XIV, Sec. 3

    • Representation by Fund to member on exchange restrictions, Art. XIV, Sec. 4

    • Restrictions on payments, Art. XIV, Sec. 2

    • Withdrawal of exchange restrictions by member, Art. XIV, Sec. 2, 4

  • Treasuries:

    • Agency dealing with Fund, Art. V, Sec. 1

    • Currency liabilities to, Sched. B, par. 6

    • Official holdings of member, Art. XIX (b)

  • Unexpected major developments, reason for change in rates or intervals of allocation or cancellation of special drawing rights, Art. XXIV, Sec. 3

  • United States dollars:

    • Expression of par values in terms of, Art. IV, Sec. 1

    • Net official holdings of, by member, Art. III, Sec. 3 (b) (ii), (d); Art. XIX (h)

    • Partial payment of subscription in, to meet administrative expenses, Art. XX, Sec. 2 (d)

    • Weight and fineness, Art. IV, Sec. 1; Art. XII, Sec. 5 (c)

  • United States Government:

    • Deposit of Fund Agreement in archives of, Signature and depository clause, p. 132

    • Deposit of instrument of acceptance with, Art. XX, Sec. 2 (a)

    • Obligation to inform members of acceptance of Fund Agreement, Art. XX, Sec. 2 (c)

    • Obligation to transmit certified copies of Agreement to governments listed in Schedule A and new members, Signature and depository clause, p. 132

    • Partial payment of subscription transmitted to, for administrative expenses, Art. XX, Sec. 2 (d)

  • Use of Fund’s resources (see also Exchange transactions of and with the Fund; General Account; Special drawing rights):

    • Availability for temporary use under adequate safeguards, Art. I (v)

    • Capital transfers, Art. VI, Sec. 1, 2; Art. XVI, Sec. 1

    • Charges, Art. V, Sec. 8; Art. XVI, Sec. 1

    • Conditions governing use, Art. V, Sec. 3; Art. XVI, Sec. 1

    • Effect of unauthorized changes of par values, Art. IV, Sec. 6

    • Eligibility after establishment of par values, Art. XX, Sec. 4 (c)

    • Eligibility after payment in full of subscription, Art. III, Sec. 3 (a)

    • Eligibility prior to establishment of par value, Art. XX, Sec. 4 (d) (ii)

    • Gold tranche purchases, Art. V, Sec. 3 (a) (iii), (d); Art. VI, Sec. 2; Art. XVI, Sec. 1; Art. XIX (j)

    • In accordance with purposes of Fund, Art. V, Sec. 3 (c)

    • Ineligibility, Art. IV, Sec. 6; Art. V, Sec. 5; Art. VI, Sec. 1 (a); Art. XXIX, Sec. 2 (f)

    • Ineligibility if member fails to fulfill its obligations, Art. XV, Sec. 2 (a), (b); Art. XXIX, Sec. 2 (f)

    • Ineligibility if member persists in maintaining restrictions, Art. XIV, Sec. 4

    • Limitation because of use of resources contrary to Fund’s purposes, Art. V, Sec. 5

    • Member whose metropolitan territory has been occupied by the enemy, Art. XX, Sec. 4 (d)

    • Not for relief or reconstruction, Art. XIV, Sec. 1

    • Policies to assist members to solve balance of payments problems, Art. V, Sec. 3 (c)

    • Postponement of exchange transactions with a member, Art. XX, Sec. 4 (i)

    • Purchase of currency of member which has withdrawn, Sched. D, par. 5

    • Temporary suspension, Art. XVI, Sec. 1

    • Waiver of conditions, Art. V, Sec. 4

  • Voting:

    • Allocation and cancellation of special drawing rights, decisions on, Art. XXIV, Sec. 4 (d)

    • Amendments to Agreement, Art. XVII (a), (b)

    • Board of Governors, extension of suspension of certain provisions, Art. XVI, Sec. 1 (c)

    • Board of Governors, increase of number of elective Executive Directors, Art. XII, Sec. 3 (b)

    • Board of Governors’ meetings or decisions on matters pertaining exclusively to the Special Drawing Account, Art. XXVII (a) (ii)

    • By Governors for Executive Directors, Art. XII, Sec. 3 (b) (iii), (iv); Sched. C

    • By Governors without meeting, Art. XII, Sec. 2 (f)

    • Call of meetings of Board of Governors by Executive Directors, Art. XII, Sec. 2 (c)

    • Changes in proportion of votes required to elect Executive Directors, Art. XII, Sec. 3 (d)

    • Changes in rates of charges, Art. V, Sec. 8 (e)

    • Committee on Interpretation, Art. XVIII (b); Art. XXVII (c)

    • Election of Executive Director to fill vacancy, Art. XII, Sec. 3 (f)

    • Executive Directors’ decisions on matters pertaining to Special Drawing Account, Art. XXVII (a) (iii)

    • Extension of suspension of certain provisions of Agreement, Art. XVI, Sec. 1 (c)

    • Maintenance of gold value of Fund’s assets, Art. IV, Sec. 8 (d)

    • Majority of votes cast required in Fund decisions unless otherwise provided for, Art. XII, Sec. 5 (d)

    • Number of votes, appointed and elected Executive Directors, Art. XII, Sec. 3 (i)

    • Number of votes, Governors, Art. XII, Sec. 2 (e)

    • Number of votes, members, Art. XII, Sec. 5

    • Payment, or mitigating effects of payment, of quota increases as a result of a general review, Art. III, Sec. 4 (c)

    • Prescription of additional transactions or categories of transactions in special drawing rights, Art. XXV, Sec. 2 (b) (ii)

    • Prescription of other holders of special drawing rights, Art. XXIII, Sec. 3

    • Publication of reports to members on economic conditions tending to produce disequilibrium in members’ balance of payments, Art. XII, Sec. 8

    • Quotas, change proposed as a result of a general review, Art. III, Sec. 2

    • Quotas, other changes, Art. III, Sec. 2

    • Rate of remuneration on members’ creditor positions, Art. V, Sec. 9 (a)

    • Reconstitution rules, Art. XXV, Sec. 6

    • Revision of percentages used in calculation of repurchases, Art. V, Sec. 7 (d)

    • Termination of suspension of certain provisions of Agreement by Executive Directors, Art. XVI, Sec. 1 (d)

    • Uniform changes in par values, Art. IV, Sec. 7, 8 (d)

    • Weighted voting, Art. XII, Sec. 2 (e), 3 (i), 5

    • Without meeting, Governors, Art. XII, Sec. 2 (f)

  • Waiver of conditions governing use of Fund’s resources, Art. V, Sec. 4

  • Withdrawal from membership; see Members, withdrawal

  • Working balances, holdings in excess of, Art. XIX (c)

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