IMF History (1966-1971) Volume 2

International Monetary System (October 1, 1971)

International Monetary Fund
Published Date:
February 1996
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Resolution No. 26-9 of the Board of Governors

Whereas the present international monetary situation contains the dangers of instability and disorder in currency and trade relationships but also offers the opportunity for constructive changes in the international monetary system; and

Whereas it is of the utmost importance to avoid the aforesaid dangers and assure continuance of the progress made in national and international well-being in the past quarter of a century; and

Whereas prompt action is necessary to resume the movement toward a free and multilateral system in which trade and capital flows can contribute to the integration of the world economy and the rational allocation of resources throughout the world; and

Whereas consideration should be given to the improvement of the international monetary system and the adjustment process; and

Whereas the orderly conduct of the operations of the International Monetary Fund should be resumed as promptly as possible in the interest of all members; and

Whereas all members of the Fund should participate in seeking solutions of the aforesaid problems;

Now, therefore, the Board of Governors hereby resolves that:

  • I. Members of the Fund are called upon to collaborate with the Fund and with each other in order, as promptly as possible, to

    • (a) establish a satisfactory structure of exchange rates, maintained within appropriate margins, for the currencies of members, together with the reduction of restrictive trade and exchange practices, and

    • (b) facilitate resumption of the orderly conduct of the operations of the Fund.

  • II. Members are called upon to collaborate with the Fund and with each other in efforts to bring about

    • (a) a reversal of the tendency in present circumstances to maintain and extend restrictive trade and exchange practices, and

    • (b) satisfactory arrangements for the settlement of international transactions which will contribute to the solution of the problems involved in the present international monetary situation.

  • III. The Executive Directors are requested:

    • (a) to make reports to the Board of Governors without delay on the measures that are necessary or desirable for the improvement or reform of the international monetary system; and

    • (b) for the purpose of (a), to study all aspects of the international monetary system, including the role of reserve currencies, gold, and special drawing rights, convertibility, the provisions of the Articles with respect to exchange rates, and the problems caused by destabilizing capital movements; and

    • (c) when reporting, to include, if possible, the texts of any amendments of the Articles of Agreement which they consider necessary to give effect to their recommendations.

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