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IMF History (1972-1978) Volume 3
Chapter

By-Laws and Rules and Regulations

Author(s):
International Monetary Fund
Published Date:
February 1996
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The By-Laws and the Rules and Regulations of the Fund that were in effect on August 1, 1979 are reproduced below.

By-Laws of the International Monetary Fund

(August 1, 1979)

Section 1. Places of Business

The principal office of the Fund shall be located within the metropolitan area of Washington, D.C., United States of America.

The Executive Board may establish and maintain agencies or branch offices at any place in the territories of other members, whenever it is necessary to do so in order to facilitate the efficient conduct of the business of the Fund.

Adopted March 16, 1946, amended June 13, 1978

Section 2. General Department and Special Drawing Rights Department

In matters pertaining exclusively to the Special Drawing Rights Department references in these By-Laws, other than in Sections 4, 5, 6, and 13(b), to members of the Fund or to Governors and Executive Directors shall be understood to refer only to members that are participants or to Governors appointed by members that are participants and Executive Directors appointed by a participant or elected or designated by at least one member that is a participant.

Adopted October 2, 1969, amended June 13, 1978

Section 3. Meetings of the Board of Governors

(a) The Board of Governors shall hold regular meetings, which shall be at annual intervals unless the Board of Governors decides otherwise. The Board of Governors shall determine the time and place of a regular meeting, but the Executive Board may change the time and place of such a meeting if it deems it necessary to do so because of special circumstances. “Regular meetings” of the Board of Governors shall mean meetings subject to this Section 3(a).

(b) Special meetings of the Board of Governors may be called at any time by the Board of Governors or the Executive Board and shall be called upon the request of fifteen members of the Fund or of members of the Fund having in the aggregate one-quarter of the total voting power. Whenever any member of the Fund requests the Executive Board to call a special meeting of the Board of Governors, the member shall state the reasons therefore. The Managing Director shall notify all members of the Fund of the request and of the reasons given therefor.

(c) Arrangements shall be made for meetings of the Board of Governors in the territory of a member only if the Fund has received written assurances with respect to immunities and privileges and other facilities for holding meetings that are satisfactory to it.

Adopted March 16, 1946, amended October 2, 1946, and June 13, 1978

Section 4. Notice of Meetings of the Board of Governors

The Managing Director shall cause notice of the time and place of each meeting of the Board of Governors to be given to each member of the Fund by rapid means of communication not less than 42 days prior to the date set for such meeting, except that in urgent cases notice shall be sufficient if dispatched by rapid means of communication not less than ten days prior to the date set for the meeting.

Adopted March 16, 1946, amended October 2, 1946, and June 13, 1978

Section 5. Attendance at Meetings

(a) An Executive Director and his Alternate may attend all meetings of the Board of Governors and may participate in such meetings, but an Executive Director or his Alternate shall not be entitled to vote at any such meetings unless he shall be entitled to vote as a Governor or an Alternate or temporary Alternate of a Governor.

(b) The Chairman of the Board of Governors, in consultation with the Executive Board, may invite observers to attend any meeting of the Board of Governors.

(c) The Executive Board is authorized to invite the International Bank for Reconstruction and Development to send a representative of the Bank to meetings of the Board of Governors and the Executive Board who may participate in such meetings, but shall have no vote.

(d) The Executive Board is authorized to accept invitations from the Bank to send a representative of the Fund to participate in meetings of the Board of Governors or Executive Directors of the Bank.

Adopted March 16, 1946; paragraphs (c) and (d) were adopted as Section 2 on March 16, 1946; amended October 2, 1946 and June 13, 1978

Section 6. Agenda of Meetings of the Board of Governors

(a) Under the direction of the Executive Board, the Managing Director shall prepare an agenda for each meeting of the Board of Governors and shall cause the agenda to be transmitted to each member of the Fund with the notice of the meeting.

(b) Additional subjects may be placed on the agenda for any meeting of the Board of Governors by any Governor provided that he shall give notice thereof to the Managing Director not less than seven days prior to the date set for the meeting. In special circumstances the Managing Director, by direction of the Executive Board, may at any time place additional subjects on the agenda for any meeting of the Board of Governors. The Managing Director shall cause notice of the addition of any subjects to the agenda for any meeting of the Board of Governors to be given as promptly as possible to each member of the Fund.

(c) Any Governor or Governors may request the Board of Governors at any time to place a subject on the agenda for any meeting of the Board of Governors even though the notice required by this Section has not been given. The Board of Governors may at any time place any subject on the agenda for any meeting of the Board of Governors even though the notice required by this Section has not been given.

(d) Except as otherwise specifically directed by the Board of Governors, the Chairman of the Board of Governors jointly with the Managing Director shall have charge of all arrangements for the holding of meetings of the Board of Governors.

Adopted March 16, 1946, amended October 2, 1946, and June 13, 1978

Section 7. Selection of Chairman and Vice-Chairmen

At each regular meeting the Board of Governors shall select a Governor to act as Chairman and at least two other Governors to act as Vice-Chairmen until the end of the next regular meeting.

In the absence of the Chairman, the Vice-Chairman designated by the Chairman shall act in his place.

Adopted March 16, 1946, amended June 13, 1978

Section 8. Secretary

The Secretary of the Fund shall serve as Secretary of the Board of Governors.

Adopted March 16, 1946

Section 9. Minutes

The Board of Governors shall keep a summary record of its proceedings, which shall be available to all members and which shall be filed with the Executive Board for its guidance.

Adopted March 16, 1946, amended June 13, 1978

Section 10. Report of Executive Board

The Executive Board shall have prepared for presentation to the Board of Governors an annual report in which shall be discussed the policies and activities of the Fund and which shall make recommendations to the Board of Governors on the problems confronting the Fund. The Executive Board shall review, as part of the annual report, the functioning of the international monetary system, including the adequacy of global reserves, the conduct of the business of the General Department and of the Special Drawing Rights Department, as well as the performance of financial services by the Fund, including the administration of resources contributed by members.

Adopted March 16, 1946, amended October 2, 1969, and June 13, 1978

Section 11. Voting

Except as otherwise specifically provided in the Articles of Agreement, all decisions of the Board of Governors shall be made by a majority of the votes cast. At any meeting the Chairman may ascertain the sense of the meeting in lieu of a formal vote but he shall require a formal vote upon the request of any Governor. Whenever a formal vote is required the written text of the motion shall be distributed to the voting members.

Adopted March 16, 1946, amended June 13, 1978

Section 12. Proxies

No Governor or Alternate may vote at any meeting by proxy or by any other method than in person, but a member may make provision for the designation of a temporary Alternate to vote for the Governor at any session of the Board of Governors at which the regularly designated Alternate is unable to be present.

Adopted March 16, 1946, amended June 13, 1978

Section 13. Voting Without Meeting

(a) Whenever, in the judgment of the Executive Board, any action by the Fund must be taken by the Board of Governors which should not be postponed until the next meeting of the Board of Governors and does not warrant the calling of a special meeting of the Board of Governors, the Executive Board shall request Governors to vote without meeting.

(b) The Executive Board shall present to each member by rapid means of communication a motion embodying the proposed action.

(c) Votes shall be cast during such period as the Executive Board may prescribe.

(d) The Executive Board may provide that no Governor shall vote on a motion during such period after dispatch of the motion as the Executive Board prescribes.

(e) At the expiration of the period prescribed for voting, the Executive Board shall record the results, and the Managing Director shall notify all members. If the replies received do not include a majority of the Governors exercising two-thirds of the total voting power, which is required for a quorum of the Board of Governors, the motion shall be considered lost.

Adopted March 16, 1946, amended October 2, 1969, and June 13, 1978

Section 14. Terms of Service

(a) Governors and Alternates shall receive reimbursement for reasonable expenses incurred in attending meetings of the Board of Governors.

(b) Pending the necessary action by members to exempt from national taxation salaries and allowances paid out of the budget of the Fund, the Governors and the Executive Directors, and their Alternates, the Managing Director, and staff members and other employees of the Fund, except those whose employment contracts state otherwise, shall be reimbursed by the Fund for the taxes which they are required to pay on such salaries and allowances.

In computing the amount of tax adjustment to be made with respect to any individual, it shall be presumed for the purposes of the computation that the income received from the Fund is his total income. All salary scales and expense allowances prescribed by this section are stated as net on the above basis.

(c) The salary of the Managing Director shall be determined by the Board of Governors and shall be included in his contract. The Fund shall also pay any reasonable expenses incurred by the Managing Director in the interest of the Fund (including travel and transportation expenses for himself, and expenses for his family, and his personal effects in moving once to the seat of the Fund during or immediately before his term of office and in moving once from the seat during or within a reasonable period after his term of office). The contract of the Managing Director shall be for a term of five years and may be renewed for the same term or for a shorter term at the discretion of the Executive Board, provided that no person shall be initially appointed to the post of Managing Director after he has reached his sixty-fifth birthday and that no Managing Director shall hold such post beyond his seventieth birthday.

(d) It shall be the duty of an Executive Director and his Alternate to devote all the time and attention to the business of the Fund that its interests require, and, between them, to be continuously available at the principal office of the Fund; however, in the event that both an Executive Director and his Alternate are unable to be available at the principal office of the Fund for reasons of health, absence while on business of the Fund, or similar reasons, the Executive Director may designate a temporary Alternate to act for him for periods of time which shall not in the aggregate exceed fifteen business days in the course of any year of his service. In special circumstances the Executive Director may designate a temporary Alternate to serve for an additional aggregate period not exceeding fifteen business days. A temporary Alternate shall receive no salary or expense allowance for his services in this capacity.

  • (e) (i) Executive Directors and their Alternates shall be entitled to remuneration in the form of salary and supplemental allowances at such annual rates as shall be determined from time to time by the Board of Governors. Remuneration as determined shall continue until changed by the Board of Governors.

    • (ii) A standing Joint Committee on the Remuneration of Executive Directors and their Alternates, appointed by the Chairmen of the Boards of Governors of the Fund and Bank and consisting of one of the Chairmen and two former Governors or Alternate Governors of the Fund or Bank, chosen by the Chairmen in consultation with the Managing Director of the Fund and the President of the Bank, shall be constituted following each regular meeting of the Board of Governors. The Joint Committee shall consider all matters affecting the remuneration and other benefits of the Executive Directors of the Bank and Fund, and of their Alternates, and from time to time, but at least by July 1 of each year in which a regular election of Executive Directors is scheduled to be held, shall make such recommendations for any action by the Board of Governors on the said matters as the Joint Committee shall deem advisable. Reports of the Joint Committee shall be submitted to the Board of Governors for a vote on any recommendation contained therein without meeting in accordance with Section 13 of the By-Laws. In making proposals with respect to the remuneration of the Executive Directors and their Alternates, the Committee shall bear in mind their functions under the Articles of Agreement of the Fund in relation to those of the Managing Director.

(f) The Executive Directors and their Alternates are to be reimbursed, in addition, for all reasonable expenses incurred during absence from the seat of the Fund while on official Fund business, and for reasonable expenses actually incurred by them in Washington or in the place of a meeting of the Board of Governors in connection with official Fund business to entertain senior officials coming from the countries that appointed, elected, or designated them. They shall also be reimbursed for travel and transportation expenses for themselves, their families, and their personal effects in moving once to the seat of the Fund during or immediately before their periods of service, and in moving once from the seat during or within a reasonable period after their periods of service.

In addition, Executive Directors and Alternates shall, in the third year of continuous full-time service in either capacity and in every second year of such service thereafter, be entitled to reimbursement for the cost of transportation expenses for their families in travelling once to and from the country of which they or their spouses are nationals, provided that in cases where the spouse is a national of a country other than that of the Executive Director or the Alternate the reimbursement for transportation expenses to and from the country of the spouse does not exceed transportation expenses to and from the country of which the Executive Director or Alternate is a national. For home leave travel every second year, reimbursement shall be made on the basis of cabin- or economy-class accommodations.

(g) Where not specified, it is assumed that the Executive Director or Alternate will be a full-time Executive Director or Alternate. Where it is intended that he shall not devote his full time, it shall be so indicated. Where an Executive Director or Alternate indicates that he intends to devote only part of his time to the Fund, his remuneration shall be prorated on the basis of a representation by him of the proportion of his time he has devoted to the interests of the Fund. The representation shall be made at appropriate intervals.

(h) Where an individual is serving both Fund and Bank, the aggregate of salary received from both shall not exceed the full annual single salary as determined in accordance with (e) above.

In all cases of salaries or expenses involving dual offices in the Fund or Bank, or both, the individual affected is entitled to take his choice as to which salary or expense he elects, but he shall not be entitled to both.

(i) An individual putting forward a claim for reimbursement for any expenses incurred by him shall include therewith a representation that he has not received and will not claim reimbursement in respect to those expenses from any other source.

(j) Secretarial and staff services, office space, and other services incidental to the performance of the duties of the Executive Directors and Alternates shall be provided by the Fund.

Adopted March 16, 1946; paragraph (a) amended March 18, 1946, June 6, 1966, and May 17, 1977; paragraph (c) amended July 27, 1951, December 14, 1960, effective December 1, 1960, February 13, 1969, effective November 1, 1968, and August 31, 1973, effective September 1, 1973; paragraph (d) amended September 17, 1947, December 20, 1971, and June 26, 1972; paragraph (e) amended January 5, 1951, effective January 1, 1951, December 2, 1957, effective November 1, 1957, December 28, 1959, effective November 1, 1959, November 7, 1962, effective September 1, 1962, August 8, 1966, effective November 1, 1965, February 13, 1969, effective November 1, 1968, July 30, 1969, effective August 1, 1969, July 13, 1972, effective November 1, 1972, and July 8, 1974; paragraph (f) amended September 17, 1947, September 30, 1948, August 18, 1961, September 10, 1964, and February 13, 1969; paragraphs (a) through (h) and (j) amended June 13, 1978

Section 15. Delegation of Authority

The Executive Board is authorized by the Board of Governors to exercise all the powers of the Board of Governors except those conferred directly by the Articles of Agreement on the Board of Governors.

Adopted March 16, 1946, amended October 2, 1969, and June 13, 1978

Section 16. Rules and Regulations

The Executive Board is authorized by the Board of Governors to adopt such Rules and Regulations, including financial regulations, as may be necessary or appropriate to conduct the business of the Fund. Any Rules and Regulations so adopted, and any amendments thereof, shall be subject to review by the Board of Governors at their next regular meeting.

Adopted March 16, 1946, amended June 13, 1978

Section 17. Vacant Directorships

Whenever a new Executive Director must be elected because of a vacancy requiring an election, the Managing Director shall notify the members who elected the former Executive Director of the existence of the vacancy. He may convene a meeting of the Governors of these members exclusively for the purpose of electing a new Executive Director; or he may request nominations, and conduct ballots, by rapid means of communication. Successive ballots shall be cast until one candidate has a majority; and after each ballot, the candidate with the smallest number of votes shall be dropped from the next ballot.

When a new elective Executive Director is named, the office of Alternate shall be deemed to be vacant and an Alternate shall be named by the newly elected Executive Director.

Adopted March 16, 1946, amended June 13, 1978

Section 18. Additional Directors

(a) At least six weeks before each regular election of Executive Directors, the Managing Director shall notify all members by rapid means of communication of the two members whose currencies held in the General Resources Account have been, on the average over the preceding two years, reduced below their quotas by the largest absolute amounts in terms of the special drawing right. He shall state whether either or both may appoint an Executive Director in accordance with Article XII, Section 3(c).

(b) The Executive Board shall prescribe a period within which a member that may appoint an Executive Director in accordance with Article XII, Section 3(c) shall notify the Managing Director whether it will appoint an Executive Director. The Managing Director shall inform each member that may appoint an Executive Director under Article XII, Section 3(c) of the period and shall inform all members promptly of the receipt of a notification under this (b).

(c) A member that is entitled to appoint an Executive Director in accordance with Article XII, Section 3(b)(i) and a member that may appoint an Executive Director in accordance with Article XII, Section 3(c) and notifies the Managing Director under (b) above that it will appoint an Executive Director shall not participate in the election of an Executive Director.

Adopted March 16, 1946, amended June 13, 1978

Section 19. Representation of Members Not Entitled to Appoint an Executive Director

(a) Each member not entitled to appoint an Executive Director in accordance with Article XII, Section 3(b)(i) may, in accordance with the regulations provided in this Section, send a representative to attend any meeting of the Executive Board when a request made by, or a matter particularly affecting, that member is under consideration. A member may waive its rights under this provision. The Executive Board shall determine whether a matter under consideration particularly affects a member not entitled to appoint an Executive Director in accordance with Article XII, Section 3(b)(i), which determination shall be final.

(b) Whenever a member not entitled to appoint an Executive Director in accordance with Article XII, Section 3(b)(i) desires to present its views at the meeting of the Executive Board at which a request the member has made is to be considered, it shall so notify the Fund when it makes the request and shall designate a representative for this purpose who shall be available at the seat of the Fund. Failure to give notice or to designate an available representative shall constitute a waiver of the member’s right to present its views at the meeting.

(c) Whenever the Executive Board is to consider a matter which has been determined particularly to affect a member not entitled to appoint an Executive Director in accordance with Article XII, Section 3(b)(i), the member shall be promptly informed by rapid means of communication of the date set for its consideration. No final action shall be taken by the Executive Board with respect to such matter, nor any question particularly affecting such member submitted to the Board of Governors, until the member has either waived its rights under paragraph (a) of this Section or has been given an opportunity to present its views through an appropriately authorized representative at a meeting of the Executive Board, of which the member has had reasonable notice.

Adopted March 16, 1946, amended September 17, 1947, and June 13, 1978

Section 20. Budget and Audits

(a) The Managing Director shall prepare an annual administrative budget to be presented to the Executive Board for approval. The budget so approved shall be incorporated in the annual report presented to the Board of Governors.

(b) An external audit of the financial statements of the Fund and of Accounts administered under Article V, Section 2(b), including the financial statements of the Staff Retirement Fund, shall be made annually and such audit shall relate to the period representing the financial year.

(c) The annual audit shall be made by an external audit committee consisting of either three or five persons each of whom shall be nominated by a different member of the Fund and confirmed by the Executive Board. At least one person serving on each audit committee shall be nominated by one of the six members of the Fund having the largest quotas, and at least one person shall be nominated by a member that is also a participant in the Special Drawing Rights Department. The Executive Board shall determine, in the case of each audit, whether the audit committee shall consist of three or five persons and which members of the Fund shall be requested to nominate persons to serve on the committee. The service of the members of each audit committee shall terminate upon completion of the annual audit and submission of the audit report. The Managing Director shall arrange for auditing services by persons outside the Fund to assist the audit committee in the performance of its functions. The members of the audit committee and any outside assistants shall respect the confidential nature of their service and the information made available for purposes of the audit.

Each audit committee shall elect one of its members as chairman, shall determine its own procedure, and shall otherwise be independent of the Management of the Fund in conducting the annual audit.

(d) The annual audit shall be conducted in accordance with generally accepted auditing standards, and shall include such tests of the accounting records and such other auditing procedures as are considered necessary. The audit shall be comprehensive with respect to examination of the financial records of the General Department, the Special Drawing Rights Department, and Accounts administered under Article V, Section 2(b), including the Staff Retirement Fund; shall extend, insofar as practicable, to the ascertainment that operations and transactions conducted during the period under review are supported by the necessary authority; and shall determine that there is adequate and faithful accounting for the assets and liabilities of the General Department and Accounts administered under Article V, Section 2(b), including the Staff Retirement Fund, and for special drawing rights. On the basis of this audit, the audit committee shall state whether the financial statements as presented give a true and fair view of the financial position at the close of the financial year of the General Department, and of Accounts administered under Article V, Section 2(b), including the Staff Retirement Fund, and, with respect to the Special Drawing Rights Department, of the allocations and holdings of special drawing rights, and of the results of operations and transactions during that year. For these purposes, the audit committee shall have access to the accounting records of the Fund and other supporting evidence of its operations and transactions, and of its administration of Accounts under Article V, Section 2(b), including the Staff Retirement Fund. The Managing Director of the Fund shall furnish the audit committee with such information and representations as may be required in connection with the audit.

(e) The Executive Board shall decide all questions of policy raised by requests of the audit committee for particular information or the inspection of particular records or documents. The refusal of any such requests for reasons of policy shall be explained in the comments of the Executive Board forwarded to the Board of Governors with the audit report.

Any question the audit committee may have concerning interpretation of the Articles of Agreement, the By-Laws, the Rules and Regulations, or the decisions of the Fund shall be discussed with the Managing Director, or officials designated by him, and if the reply is not completely satisfactory to the audit committee, the matter shall be referred to the Executive Board through the Managing Director.

(f) The audit committee shall submit the audit report to the Board of Governors for consideration by it. Such submission shall be made through the Managing Director and the Executive Board which shall forward with the audit report its comments thereon. The audit committee shall afford the Managing Director an opportunity for explanation to it before deciding that any matter seems to require criticism in the report. The audit report shall be submitted to the Board of Governors within a reasonable time after its completion.

The audit committee may formally furnish to the Managing Director and the Executive Board the committee’s views and suggestions concerning the system of accounting, internal financial control, and documentary or other procedure which may technically strengthen or improve the administration of the Fund’s financial affairs. Such matters need not be dealt with in the audit report unless the audit committee believes they are of such moment as to warrant inclusion.

(g) The Managing Director shall determine what expenses are necessary and reasonable in connection with each annual audit, and the Fund shall bear such expenses.

Adopted March 16, 1946, amended September 17, 1947, October 2, 1969, March 20, 1972, and June 13, 1978

Section 21. Applications for Membership

(a) Any country may apply for membership in the Fund by filing with the Fund an application, which shall set forth all relevant facts.

(b) The Executive Board shall report on all applications to the Board of Governors. When an application is submitted to the Board of Governors with a recommendation that the applicant country be admitted to membership, the Executive Board after consultation with the applicant country shall recommend to the Board of Governors the amount of the quota, the form of payment of the subscription, and such other conditions as, in the opinion of the Executive Board, the Board of Governors may wish to prescribe.

Adopted March 16, 1946, amended June 13, 1978

Section 22. Compulsory Withdrawal

Before any member is required to withdraw from membership in the Fund, the matter shall be considered by the Executive Board, which shall inform the member in reasonable time of the complaint against it and allow the member an adequate opportunity for stating its case both orally and in writing. The Executive Board shall recommend to the Board of Governors the action it deems appropriate. The member shall be informed of the recommendation and the date on which its case will be considered by the Board of Governors and shall be given a reasonable time within which to present its case to the Board of Governors both orally and in writing. Any member so electing may waive this provision.

Adopted March 16, 1946, amended June 13, 1978

Section 23. Settlement of Disagreements with Withdrawing Member

The President of the International Court of Justice is prescribed as the authority to appoint an umpire whenever there arises a disagreement of the type referred to in Article XXI(d) or Article XXIX(c).

Adopted March 16, 1946, amended October 2, 1969, and June 13, 1978

Section 24. Amendment of By-Laws

These By-Laws may be amended by the Board of Governors at any meeting thereof or by vote without a meeting as provided in Section 13.

Adopted October 2, 1946

Rules and Regulations of the International Monetary Fund

(August 1, 1979)

A—Scope of Rules and Regulations

A-1. These Rules and Regulations supplement the Articles of Agreement and the By-Laws adopted by the Board of Governors. They are not intended to replace any provision of either the Articles or the By-Laws. The Rules and Regulations provide such operating rules, procedures, regulations, and interpretation as are necessary and desirable to carry out the purposes and powers contained in the Articles, as supplemented by the By-Laws. If any provision in the Rules and Regulations is found to be in conflict with any provision in the Articles or in the By-Laws, the Articles and By-Laws shall prevail and an appropriate amendment shall be made to these Rules and Regulations.

Adopted September 25, 1946, amended April 1, 1978

A-2. Additions to, and changes of, the Rules and Regulations will be made as experience brings to light new problems or suggests modifications in procedures already adopted.

Adopted September 25, 1946

B—Terms and Definitions

B-1. Executive Director, except where otherwise specified, shall include the Alternate or the temporary Alternate, as the case may be. In matters pertaining exclusively to the Special Drawing Rights Department references in these Rules and Regulations to Executive Director, other than in Rules C-l, C-5(a), C-15, and C-16, shall apply to an Executive Director appointed by a participant or elected or designated by at least one member that is a participant. Staff shall include all officers or employees of the Fund other than the Managing Director and those persons whose contracts state that they are not staff members. It shall not include Executive Directors, Alternate Executive Directors, Advisors or assistants to Executive Directors.

Adopted September 25, 1946; amended August 14, 1947, effective September 17, 1947; September 18, 1969; and April 1,1978

B-2. Chairman, except where otherwise specified, shall refer to the Chairman or Acting Chairman of the Executive Board.

Adopted September 25, 1946

B-3. Agenda ordinarily refers to both the list of items to be considered at a meeting and the supplementary documents pertinent thereto.

Adopted September 25, 1946

B-4. Business day of the Fund refers to the normal working hours of the Fund, 9:00 a.m. to 5:30 p.m. at the official time for the District of Columbia, on Monday through Friday of each week with the following exceptions (which will include the preceding Friday whenever one of the dates specified below falls on a Saturday and the following Monday whenever one falls on a Sunday):

January 1

The third Monday in February

The last Monday in May

July 4

The first Monday in September

The second Monday in October

November 11

The fourth Thursday in November

December 25

Adopted May 28, 1947, amended March 8, 1948, October 27, 1961, November 24, 1970, April 1, 1978, and June 5, 1978

B-5. The definition of “business day” shall not affect in any way the arrangements which have been made for the receipt of messages at all times and for prompt action upon them as required by circumstances and by the Articles, By-Laws, and Rules and Regulations.

Adopted April 1, 1978

C—The Executive Board

Meetings

C-1. Meetings of the Executive Board shall be called by the Chairman as the business of the Fund may require. Except in special circumstances the Chairman shall notify all Executive Directors of meetings at least two business days in advance.

Adopted September 25, 1946, amended May 28, 1947, and April 1, 1978

C-2. The Chairman shall call a meeting at the request of any Executive Director. Adopted September 25, 1946

  • C-3. (a) Ordinary meetings of the Executive Board shall be open to attendance by Advisors and assistants to Executive Directors, the Secretary and such other members of the staff as the Chairman indicates, but the Executive Board may determine which particular members of the staff may attend a session. The Deputy Managing Director shall be entitled to attend all ordinary meetings of the Executive Board.

    • (b) Meetings of the Executive Board shall be held in executive session whenever the Managing Director or any Executive Director so desires. Only Executive Directors, the Managing Director, and the Deputy Managing Director shall be present at executive sessions, except that for any particular executive session the Executive Board may permit attendance by the Secretary and by such other members of the staff as may be prescribed by the Executive Board. The Executive Board may permit attendance by Advisors or assistants to Executive Directors.

Adopted September 25, 1946, amended January 15, 1948, and April 1, 1978

C-4. The Executive Board shall meet at the principal office of the Fund unless the Executive Board decides that a particular meeting shall be held elsewhere.

Adopted September 25, 1946, amended April 1, 1978

  • C-5. (a) Executive Directors may participate in all meetings of the Executive Board and of its committees.

    • (b) In the absence of the Managing Director, the Deputy Managing Director shall act as Chairman and shall have a deciding vote in case of an equal division. In the absence of both the Managing Director and the Deputy Managing Director, the Executive Director selected by the Executive Board shall act as Chairman. An Executive Director shall retain his right to vote when serving as Acting Chairman.

Adopted September 25, 1946, amended November 12, 1948, September 18, 1969, and April 1, 1978

Agenda

C-6. The agenda for each meeting shall be prepared by the Chairman. The agenda shall include any item requested by an Executive Director.

Adopted September 25, 1946

C-7. Except in special circumstances the Chairman shall notify Executive Directors of new items on the agenda at least two full business days before their consideration in meetings. Additional advance notice shall be given at the discretion of the Chairman before the consideration of new items of special importance which may require consultation with members or the return to the principal office of the Fund of Executive Directors who are absent.

Adopted September 25, 1946, amended May 28, 1947, and April 1, 1978

C-8. Matters not on the agenda for a meeting may be considered at that meeting only by unanimous consent of the Executive Directors present.

Adopted September 25, 1946

C-9. Any item of the agenda for a meeting, consideration of which has not been completed at that meeting, shall, unless the Executive Board decides otherwise, be automatically included in the agenda of the next meeting.

Adopted September 25, 1946, amended April 1, 1978

Voting

C-10. The Chairman shall ordinarily ascertain the sense of the meeting in lieu of a formal vote. Any Executive Director may require a formal vote to be taken with votes cast as prescribed in Article XII, Section 3(i), or Article XXI(a)(ii).

Adopted September 25, 1946, amended September 18, 1969, and April 1, 1978

C-11. There shall be no formal voting in committees and subcommittees. The Chairman of the committee or subcommittee shall determine the sense of the meeting (including alternative points of view) which shall be reported.

Adopted September 25, 1946

C-12. No Executive Director may vote at any meeting by proxy or by any other method than in person.

Adopted September 25, 1946

Language

C-13. The working language of the Fund shall be English. The discussion, documents, and reports of meetings shall ordinarily be in English. Speeches or papers presented in other languages shall be translated into English.

Adopted September 25, 1946, amended April 1, 1978

Minutes

C-14. Under the direction of the Managing Director, the Secretary shall be responsible for the preparation of a summary record of the proceedings of the Executive Board.

Adopted September 25, 1946

C-15. Verbatim records shall be kept for inclusion in the archives of the Fund only if the Chairman or an Executive Director so requests. In addition, verbatim records may be kept in order to assist the Secretary to prepare the summary record of a meeting of the Executive Board, provided that these verbatim records shall be destroyed after a reasonable period of time.

Adopted September 25, 1946, amended April 1, 1978

C-16. Draft minutes shall be circulated to all Executive Directors as soon as possible after meetings. They shall be submitted for approval by the Executive Board within a reasonable time.

Adopted September 25, 1946, amended May 28, 1947, August 14, 1947, and April 1, 1978

D—Application for Membership and Change in Quota

Application for Membership

D-1. When a country applies for membership in the Fund, the application shall be placed promptly before the Executive Board, and a reasonable time shall be allowed for discussion and preliminary investigation by the Executive Board before a decision is reached to proceed with the formal investigation. If this decision is in the affirmative the Fund may proceed to obtain all relevant information and discuss with the applicant any matters relating to its application. Any Executive Director may request such information to be added to the list requested of the applicant as in his opinion is relevant to the decision to be made. The Executive Board shall then decide whether to submit an application for membership with its views to the Board of Governors for a vote without meeting or hold the application until the next meeting of the Board of Governors.

If the Executive Board decides not to proceed with its formal investigation of an application for membership, it shall report that decision to the Board of Governors with the reasons for the decision.

Adopted September 25, 1946, amended April 1, 1978

Quotas

D-2. When a member requests an adjustment of its quota, the Executive Board, after consulting the member, shall submit a written report on the request to the Board of Governors.

Adopted September 25, 1946, amended May 28, 1947, and April 1, 1978

D-3. At least one year prior to the time when a general review of quotas must be undertaken by the Board of Governors, the Executive Board shall appoint a Committee of the Whole to study the matter and to prepare a written report. If it is decided to conduct a general review before the time at which such a review must be undertaken by the Board of Governors, the Executive Board shall appoint a Committee of the Whole for this purpose promptly.

Adopted September 25, 1946, amended April 1, 1978

E—Subscriptions

E-1. A member shall pay its currency subscription to the Fund at the designated depository. Each member is authorized to substitute, in accordance with Article III, Section 4, nonnegotiable, non-interest bearing notes payable to the Fund on demand for that part of the currency holdings of the Fund in the General Resources Account which exceed ¼ of 1 per cent of the member’s quota, and the depository shall hold such notes for the account of the Fund. Such notes shall not be accepted until the Fund is satisfied that they are in proper form and that their issue has been authorized. The balances held in the administrative accounts of the Fund shall not be considered as part of the currency holdings of the Fund for the application of this Rule.

Adopted September 25, 1946, amended February 20, 1950, January 30, 1974, and April 1, 1978

E-2. The Executive Board may agree to alter the ¼ of 1 per cent requirement in the case of any member should circumstances in the opinion of the Executive Board warrant a different percentage.

Adopted September 25, 1946, amended February 20, 1950, and January 30, 1974

E-3. The member is allowed 24 hours in which to deposit the currency necessary to maintain the amount required under E-l and E-2.

Adopted September 25, 1946, amended April 1, 1978

F—Gold

F-1. Gold depositories of the Fund shall be established in the United States, the United Kingdom, France, and India. The gold of the Fund shall be held with the depositories designated by the members in whose territories they are located at places agreed with the Fund.

Adopted September 25, amended November 29, 1956, and April 1, 1978

F-2. The Fund may hold gold under earmark for members.

Adopted April 1, 1978

G—Operations and Transactions

G-1. Each member shall designate a fiscal agency in accordance with Article V, Section 1, and may change the agency after notifying the Fund.

Adopted September 25, 1946, amended September 18, 1969

G-2. Instructions from a member for the transfer of currency, special drawing rights, or gold between it and the General Department and for transfers of special drawing rights through the Special Drawing Rights Department shall be given by the fiscal agency of the member. Instructions shall be authenticated in the manner agreed upon by the Fund and the fiscal agency.

Adopted September 25, 1946, amended February 20, 1947, and April 1, 1978

G-3. In its operations on behalf of the Fund a depository will act only on instructions authenticated in such manner as may be agreed upon by the Fund and the depository.

Adopted September 25, 1946, amended February 20, 1947, and April 1, 1978

G-4. When a duly authenticated request is received for a purchase in accordance with Article V, Section 3, other than a reserve tranche purchase or a purchase under a stand-by or extended arrangement, the Fund shall promptly consider the request. Instructions for a transfer of currency shall be given by the Fund on the day of its decision approving the purchase, except when the Executive Board decides otherwise. When a request is received for a reserve tranche purchase of currency, or for a purchase of currency in accordance with a stand-by or extended arrangement, the Fund’s instructions to the appropriate depository to make the transfer shall be given not later than the close of the first business day following receipt of the request.

Adopted September 25, 1946, amended February 7, 1947, and April 1, 1978

G-5. When a member expects to purchase from the Fund, in a single transaction or a series of transactions, an amount of another member’s currency that is unusually large in relation to the quota of that other member, the member shall give the Managing Director as much notice of the proposed transaction or transactions as can reasonably be effected.

Adopted September 25, 1946, amended April 1, 1978

H—Exchange Controls, Currency Practices, Agreements, and Information

H-1. The Fund shall keep all exchange controls under review and shall consult with members with a view to the progressive removal of exchange restrictions in accordance with the Fund Agreement.

Adopted September 25, 1946

H-2. If a member complains to the Executive Board that another member is not complying with its obligations concerning exchange controls, discriminatory currency arrangements, or multiple currency practices, the complaint shall give all facts pertinent to an examination.

Adopted September 25, 1946

H-3. Upon receipt of a complaint from a member, the Executive Board shall make arrangements promptly for consultation with the members directly involved.

Adopted September 25, 1946

H-4. All requests by a member under Article VIII, Sections 2 and 3, that the Fund approve the imposition of restrictions on the making of payments and transfers for current international transactions, or the use of discriminatory currency arrangements or multiple currency practices, shall be submitted to the Executive Board in writing, with a statement of the reasons for making the request.

Adopted September 25, 1946

H-5. The Executive Board shall decide each request for approval expeditiously.

Adopted September 25, 1946

H-6. The Fund shall arrange through the fiscal agencies of members that frequent and regular information as to the market rates of members’ currencies bought and sold in their territories is made available to the Fund.

Adopted September 25, 1946, amended April 1, 1978

H-7. Pursuant to Article VIII, Section 5, the Fund shall arrange with members to report their official holdings of gold and foreign exchange to the Fund within thirty days of the end of each month.

Adopted April 1,1978

I—Charges in Respect of General Resources Account Transactions and Remuneration

I-1. The service charge payable by a member buying, in exchange for its own currency, the currency of another member or special drawing rights from the General Resources Account shall be ½ of 1 per cent, except that no service charge shall be payable in respect of any purchase to the extent that it is a reserve tranche purchase. The service charge shall be paid at the time the transaction is consummated. The service charge shall be reviewed in connection with any review of charges under Rule I-7.

Adopted September 25, 1946, amended November 19, 1951, November 14, 1952, June 26, 1953, October 14, 1953, December 23, 1953, December 15, 1954, December 27, 1955, May 23, 1956, December 21, 1956, December 9, 1957, December 12, 1958, March 20, 1959, April 20, 1959, April 19, 1960, April 17, 1961, April 25, 1962, April 24, 1963, April 13, 1964, April 28, 1965, April 22, 1966, September 18, 1969, September 10, 1971, and April 1, 1978

I-2. As soon as possible after July 31, October 31, January 31, and April 30, the Fund shall notify each member by cable of the charges it owes to the Fund pursuant to Article V, Section 8(b) or (c) for the three calendar months ending on each such date. These charges shall be payable promptly after the end of the quarter to which they relate.

Adopted September 25, 1946, amended July 30, 1948, February 24, 1954, April 1, 1977, and April 1, 1978

I-3. Charges payable by each member under Article V, Section 8(b) or (c) shall be computed on the basis of the “average of the holdings” which, as used in this section, means the average daily balances of its currency held by the Fund that are subject to charges, calculated as follows:

  • (a) at the end of each calendar month there shall be averaged for each member the daily amounts of the Fund’s holdings of its currency on the Fund’s books at the close of each day during that month that are subject to charges;

  • (b) the Fund’s holdings of each member’s currency shall consist of all of its currency except amounts, not in excess of 110 of 1 per cent of the member’s quota, in a special account to meet administrative expenses and amounts in sundry cash accounts.

Adopted July 30, 1948, amended November 1, 1968, and April 1, 1978

I-4. The period of time during which the Fund’s holdings of a member’s currency have been at a particular level shall be the continuous period of time during which the average of the holdings has not fallen below that level, and, in determining periods of time for the application of the charges, changes in the average of the holdings shall affect the calculation of time periods in the following way:

  • (a) Each increase in the average of the holdings shall create a new segment of the holdings which will be equal to the amount of the increase and the period of time during which each segment is held shall be measured from the beginning of the month in which the increase in the average of the holdings occurs.

  • (b) Each decrease in the average of the holdings shall terminate the period of time during which the holdings have been in excess of the new average and the period of time shall terminate at the end of the month preceding that in which the decrease in the average of the holdings occurs.

Adopted July 30, 1948

I-5. The calculations under Rule 1-3 and Rule 1-4 shall be made separately in respect of the parts of the Fund’s holdings of a member’s currency that are subject to separate schedules of charges.

Adopted June 13, 1974, amended September 13, 1974, April 4, 1975, and April 1, 1978

I-6. Changes in any schedule of charges levied under Article V, Section 8(b) or (c) shall apply from the first day of the month following the month during which a change is made.

Adopted June 13, 1974, amended April 1, 1978

  • I-7. (1) The charge on a segment of the holdings of a member’s currency acquired by the Fund as the result of a purchase under the Oil Facility for 1974 (Executive Board Decision No. 4241-(74/67)) shall be ⅞ per cent per annum for the first three years, and an additional ⅛ of 1 per cent per annum for each subsequent twelve months, provided that, subject to (9) below, the rate shall not increase above 7 ⅛ per cent per annum.

  • (2) The charge on a segment acquired as the result of a purchase under the Oil Facility for 1975 (Executive Board Decision No. 4634-(75/47)) shall be 7⅝ per cent per annum for the first three years and an additional ⅛ of 1 per cent per annum for each subsequent twelve months, provided that, subject to (9) below, the rate shall not increase above 7⅞ per cent per annum.

  • (3) The charge on a segment acquired as the result of a purchase under the facility for the compensatory financing of export fluctuations (Decision No. 4912-(75/207), as amended) or under the facility for the problem of stabilization of prices of primary products (Decision No. 2772-(69/47), as amended), shall be at the rates in

    • (i) (5)(a)(i), (ii), and (iii) below if the segment includes holdings acquired prior to July 1, 1974; and

    • (ii) (5)(b)(i) and (ii) below if the segment includes holdings acquired on or after July 1, 1974.

  • (4) (a) The charge on a segment acquired as the result of purchases made with supplementary financing pursuant to Executive Board Decision No. 5508-(77/127) shall be equal to the rate of interest paid by the Fund from time to time pursuant to paragraph 4(a) of the Annex to Executive Board Decision No. 5509-(77/127), plus

    • (i) ⅕ of 1 per cent per annum for the first three and one-half years after a purchase, and

    • (ii) an additional ⅛ of 1 per cent per annum for the twelve months following the period in (i), and

    • (iii) an additional ⅛ of 1 per cent per annum thereafter.

  • (b) The charges under (a) above shall not exceed the rate of interest by more than ⅜ of 1 per cent per annum, provided that during any period in which there is a failure to repurchase in accordance with paragraph 7 of Decision No. 5508-(77/127) or with a representation by the Fund that the member should repurchase because of an improvement in its balance of payments and reserve position, the charges to be levied shall be higher than they would otherwise have been by an additional ⅛ of 1 per cent per annum for each period of twelve months until the charges payable on any segment have reached 710 of 1 per cent per annum above the interest rate payable by the Fund in accordance with (a) above, at which time the Fund will review the charges to be imposed.

  • (5) The charge on a segment that is not subject to another schedule of charges and that is in excess of quota after the exclusion of any segments subject to (1), (2), (3), or (4) above, shall be,

    • (a) if the segment includes holdings acquired prior to July 1, 1974:

      • (i) to the extent that the segment is within the first bracket of 50 per cent in excess of quota, nil for the first three months, 2 per cent per annum for the next fifteen months, and an additional ½ of 1 per cent per annum for each subsequent six months;

      • (ii) to the extent that the segment is within the second bracket of more than 50 per cent and not more than 100 per cent in excess of quota, nil for the first three months, 2 per cent per annum for the next nine months, and an additional ½ of 1 per cent per annum for each subsequent six months;

      • (iii) to the extent that the segment is within the third bracket of more than 100 per cent in excess of quota, nil for the first three months, 2 per cent annum for the next three months, and an additional ½ of 1 per cent per annum for each subsequent six months;

provided that, subject to (9) below, the rate shall not increase above 5 per cent per annum;

  • (b) if the segment includes holdings acquired on or after July 1, 1974:1

    • (i) 4⅜ per cent per annum for the first twelve months, provided that if in any period of six successive months the Fund’s total expenses exceeded its income the Executive Board will promptly review all aspects of the Fund’s financial position, including the rate of remuneration pursuant to Rule 1-10 and the rate of charge for the first twelve months, and take such action as it considers necessary to safeguard the financial position of the Fund, and provided further that the rate of charge for the first twelve months shall be ¼ of 1 per cent above the rate of remuneration, unless, as a result of this review, the Executive Board decides within one month after the end of any such six-month period that a different rate of charge shall apply; and

    • (ii) an additional ½ of 1 per cent per annum for each additional twelve months, provided that, subject to (9) below, the rate shall not increase above 6⅜ per cent per annum.

This provision shall be reviewed if the Fund’s total annual income substantially exceeded its total annual expenses.

  • (6) The charge on a segment that has been acquired as the result of a purchase under the extended Fund facility (Decision No. 4377-(74/114), as amended), and that is in excess of quota after excluding any segments subject to (1), (2), (3), or (4) above, shall be,1

    • (i) the rate of charge in (5)(b)(i) after for the first twelve months; and

    • (ii) an additional ½ of 1 per cent per annum for each additional twelve months, provided that, subject to (9) below, the rate shall not increase above the rate in (5)(b)(i) above plus 2½ per cent per annum.

  • (7) The charge on a segment that has been acquired by the Fund as the result of a sale of gold to a member pursuant to paragraph 2 of Executive Board Decision No. 5293-(76/167) and that is in excess of quota after the exclusion of any segments subject to (1), (2), (3), or (4) above shall be the higher of 4 per cent per annum or the rate of charge under (5)(b) above.

  • (8) The charge on a segment that has been acquired otherwise than as the result of a purchase and is not subject to (7) above, and that is subject to charges, shall be the rate of charge under

    • (i) (5)(a) above if the segment includes holdings acquired prior to July 1, 1974; and

    • (ii) (5)(b) above if the segment includes holdings acquired on or after July 1,1974.

  • (9) The Fund may review the rates of charge to be levied on its holdings of a member’s currency that have not been repurchased in accordance with the requirements of the Articles or decisions of the Fund, and, after consultation with the member on the reduction of the Fund’s holdings of its currency, may impose such charges as it deems appropriate.

  • (10) The initial rates of charge on balances held on the date of the Amendment that are subject to (1), (2), (3), or (4) above shall be the rates for the first twelve months.

Adopted April 24, 1963, amended April 13, 1964, April 28, 1965, April 22, 1966, June 13, 1974, September 13, 1974, April 4, 1975, April 1, 1977, and April 1, 1978; paragraph (5) amended October 25, 1978, effective January 1, 1979

I-8. The following provisions shall apply to stand-by arrangements approved after the date of the Second Amendment:

  • (a) A charge of ¼ of 1 per cent per annum shall be payable at the beginning of each twelve-month period of a stand-by arrangement on that part of the total amount of the arrangement that has not been purchased.

  • (b) When a purchase is made under a stand-by arrangement, the amount of the charge paid shall be reduced in the proportion the amount of the purchase bears to the total amount that can be purchased under the arrangement during the period of twelve months or less in which the purchase was made. A refund equal to the reduction shall be made.

  • (c) If a member notifies the Fund that it wishes to cancel a stand-by arrangement, the Fund shall repay to the member a portion of the charge. The portion repaid shall represent the charge for the period remaining unexpired at the date of cancellation for the amount that could still be purchased under the stand-by arrangement at the date of cancellation for which the member has paid a charge.

  • (d) Refunds for reductions under subparagraph (b) above and repayments under subparagraph (c) above of a charge paid for a stand-by arrangement shall be made in the media selected by the Fund.

Adopted April 1, 1978

  • I-9. (a) Remuneration shall accrue daily and shall be paid as of the end of each financial year of the Fund.

    • (b) A member that wishes to receive in its own currency the whole or a specified portion of the remuneration payable to it shall notify the Fund by rapid means of communication not later than the end of a financial year.

Adopted September 18, 1969, amended April 1, 1978

  • I-10. (a) The rate of remuneration shall be equal to 90 per cent of the rate of interest on the special drawing right under Rule T-l(b).

    • (b) The Fund shall review the rate of remuneration on the occasion of the quarterly review of the rate of interest paid by it on holdings of special drawing rights.

    • (c) Shortly before the end of each financial year the Fund shall consider whether the estimated net income of the Fund for that year was sufficiently large to permit the average annual rate of remuneration for that year to be raised to a level above 90 per cent but not above 100 per cent of the average annual rate of interest on the special drawing right. In considering whether to establish a higher rate of remuneration for a particular year, the Fund shall also consider the possibility of reducing the rates of charges applicable under Rule I-7(5)(b)(i) from the beginning of the subsequent financial year.

Adopted June 13, 1974, amended July 7, 1975, June 30, 1976, April 1, 1978, and October 25, 1978, effective January 1, 1979

J—Accounting and Reporting

Accounts

  • J-1. (a) The accounts of the General Department shall be summarized, and the financial statements relating to them shall be expressed, in terms of the special drawing right. Currencies and other assets denominated in currency shall be valued in accordance with exchange rates under Article XIX, Section 7(a) and decisions of the Fund. Gold held by the Fund on the date of the Second Amendment shall be valued on the basis of one special drawing right per 0.888 671 gram of fine gold, and gold accepted by the Fund after that date shall be valued in terms of the special drawing right in such manner as the Executive Board shall decide.

    • (b) The accounts of the Special Drawing Rights Department shall be kept in terms of the special drawing right.

    • (c) An Account administered by the Fund under Article V, Section 2(b) shall be summarized, and the financial statements relating to it shall be expressed, in terms of the special drawing right or, if the Fund so decides, in terms of a currency held in the Account.

Adopted September 25, 1946; amended September 18, 1969; February 25, 1972, effective March 20, 1972; and April 1, 1978

  • J-2. (a) The accounts of the General Department shall be kept in a manner that will show clearly the nature and amount of each operation and transaction and the position of each member. The accounts of the Special Drawing Rights Department shall be kept in a manner that will show clearly the nature and amount of each operation and transaction in special drawing rights and the postion of each participant, the Fund, and each other holder.

    • (b) Accounts administered by the Fund under Article V, Section 2(b) shall be kept in a manner that will show clearly the nature and amount of each operation and transaction, the position of each such Account, the postion of each contributor, and the position of each recipient of resources from the Account.

Adopted September 25, 1946, amended September 18, 1969, and April 1, 1978

  • J-3. (a) A summary statement of the operations and transactions conducted through the General Department shall be issued at intervals of three months or less. A monthly statement shall be sent to each member, setting forth the member’s position in the Accounts of the General Department and the details of operations and transactions between the member and the Fund other than operations and transactions of an administrative nature.

    • (b) A summary statement of the operations and transactions conducted through the Special Drawing Rights Department, and of the position of each participant and each other holder, shall be issued at intervals of three months or less. A statement shall be sent periodically to each participant and each other holder, setting forth the position of the participant or the other holder in the Special Drawing Rights Department and the details of operations and transactions involving the participant or the other holder.

    • (c) A summary statement of the operations and transactions conducted through Accounts administered by the Fund under Article V, Section 2(b), except the Staff Retirement Fund, shall be issued at intervals of three months or less. A monthly statement shall be sent to each contributor and to each recipient of benefits through such an Account, setting forth the position of the contributor or the recipient, and the details of operations and transactions between the Account and the contributor or the recipient.

    • (d) Accounting and reporting with respect to the Staff Retirement Fund shall be carried out in accordance with the terms of the Staff Retirement Plan.

Adopted September 25, 1946, amended September 18, 1969, and April 1, 1978

Annual Administrative Budget

J-4. Not later than April 1 of each year, the Managing Director shall present for the approval of the Executive Board the annual administrative budget of the Fund. The budget shall include a projection of the income of the Fund and of the expense of conducting the business of the Fund and of reimbursement of the General Resources Account in respect of the expenses of administration of the Special Disbursement Account, the Special Drawing Rights Department, and Accounts administered by the Fund under Article V, Section 2(b).

Adopted September 25, 1946, amended February 20, 1948, September 18, 1969, and April 1, 1978

Annual Report

J-5. Not later than May 31 of each year, the Managing Director shall present to the Executive Board for its consideration a summary of the matters which in his opinion should be included in the annual report to the Board of Governors. At least two months before a regular meeting of the Board of Governors, the Managing Director shall submit to the Executive Board for its consideration a draft of the annual report. If a regular meeting of the Board of Governors is not scheduled to be held during a year, the draft shall be submitted as soon as possible after May 31 of the same year.

Adopted September 25, 1946, amended April 1, 1978

Audit

J-6. At least two months before a regular meeting of the Board of Governors, the audited financial statements of the Fund shall be submitted to the Executive Board for its consideration. If a regular meeting of the Board of Governors is not scheduled to be held in any year, the audited financial statements shall be submitted as soon as possible after the end of the financial year of the Fund.

Adopted September 25, 1946, amended April 1, 1978

Financial Year

J-7. For purposes of the Fund’s accounts and reports, its financial year shall begin on May 1 and end on the succeeding April 30.

Adopted February 7, 1947; amended May 28, 1947, effective September 17, 1947; and April 1, 1978

K—Limitation and Ineligibility

K-1. The Managing Director shall report to the Executive Board any case in which it appears to him that a member is not fulfilling obligations under the Articles other than obligations referred to in Rule S-1.

Adopted September 25, 1946, amended September 18, 1969, and April 1, 1978

K-2. Whenever the Executive Board is authorized by the Articles to declare a member ineligible to use the general resources of the Fund it may refrain from making the declaration and indicate the circumstances under which, and the extent to which, the member may make use of the general resources.

Adopted September 25, 1946, amended April 1, 1978

K-3. Before any member is declared ineligible to use the general resources of the Fund pursuant to Article XXVI, Section 2(a), the matter shall be considered by the Executive Board, which shall inform the member in reasonable time of the complaint against it and allow the member an adequate opportunity for stating its case both orally and in writing.

Adopted September 25, 1946, amended April 1, 1978

K-4. When any member that is ineligible to use the general resources of the Fund, or whose use of the general resources has been limited according to Rule K-2 above, requests the Executive Board to permit the resumption of the use of the general resources with or without special limitations and the Executive Board decides not to permit such resumption, a written report shall be presented to the member stating what further action is required before such resumption will be permitted.

Adopted September 25, 1946, corrected October 18, 1950, amended April 1, 1978

K-5. When it is decided to use assets held in the Special Disbursement Account to make a distribution to developing members in accordance with Article V, Section 12(f) (iii), the Executive Board shall consider whether to permit a member that has been declared ineligible to use the general resources of the Fund under Article V, Section 5 to participate in the distribution before the ineligibility of the member has ceased.

Adopted April 1, 1978

L—Capital Transfers

L-1. If a large or sustained outflow of capital from a member country is taking place:

  • (a) that member or any other member may notify the Fund, presenting such information as it deems necessary, and may request the Fund’s views with respect to such capital movement; and

  • (b) the Fund may present to the member or members concerned a report setting forth its views, and may request the member or members to report on the situation within a suitable time.

Adopted September 25, 1946

L-2. Whenever the Fund has requested a member to exercise controls to prevent use of the general resources of the Fund to meet a large or sustained outflow of capital, the Fund shall request the member to notify it promptly and in detail of the measures taken.

Adopted September 25, 1946, amended April 1, 1978

L-3. Each member shall inform the Fund in detail of any measures it is taking to regulate international capital movements and of changes made in such measures.

Adopted September 25, 1946, amended April 1, 1978

L-4. If the Fund is of the opinion that the controls exercised by a member to regulate international capital movements are restrictive of payments for current international transactions, or unduly delay transfers of funds in settlement of commitments, the Fund shall, subject to the provisions of Article VII, Section 3(b) and Article XIV, Section 2, consult with the member on the manner in which the controls are exercised. If, after consultation, the Fund is not satisfied that the controls are exercised in a manner consistent with the Articles, it shall so inform the member in a written report and request it to modify the controls.

Adopted September 25, 1946, amended April 1, 1978

M—Relations with Non-Members

M-1. The Fund may request the cooperation of any member with a view to the application of appropriate measures to prevent transactions with non-members or with persons in their territories, contrary to the provisions of the Articles or the purposes of the Fund.

Adopted September 25, 1946, amended April 1, 1978

M-2. When the Fund finds that a member or any of its fiscal agencies referred to in Article V, Section 1, engages in any transaction with or cooperates in practices with a non-member or with persons in a non-member’s territory contrary to the provisions of the Articles or the purposes of the Fund, it shall present to the member a report setting forth its views and may request the cessation or modification of the transactions or practices.

Adopted September 25, 1946, amended April 1, 1978

M-3. A member shall inform the Fund promptly and in detail of any restrictions which it imposes on exchange transactions with non-members or with persons in their territories.

Adopted September 25, 1946

M-4. Any member may notify the Fund of restrictions imposed by a member on exchange transactions with non-members or with persons in their territories which are deemed to prejudice the interests of members and to be contrary to the purposes of the Fund.

Adopted September 25, 1946

M-5. When the Fund finds that the restrictions imposed by a member on exchange transactions with non-members or with persons in their territories are prejudicial to the interests of members and contrary to the purposes of the Fund, it shall present to the member a report setting forth its views and may request the abolition or modification of the restrictions.

Adopted September 25, 1946

M-6. The Fund deems that it would be prejudicial to the interests of members and contrary to the purposes of the Fund for a member to impose restrictions on exchange transactions with those non-members having entered into special exchange agreements under the General Agreement on Tariffs and Trade, or with persons in their territories, which the member would not in similar circumstances be authorized to impose on exchange transactions with other members or persons in their territories. Therefore, pursuant to Article XI, Section 2, members should not institute restrictions on exchange transactions with such non-members, or persons in their territories, unless the restrictions (a) if instituted on transactions with other members, or persons in their territories, would be authorized under the Articles, or (b) have been approved in advance by the Fund. Requests for prior approval shall be submitted in writing with a statement of reasons.

Adopted June 7, 1950, amended April 1, 1978

N—Staff Regulations

N-1. Persons on the staff of the Fund shall be nationals of members of the Fund unless the Executive Board authorizes exceptions in particular cases. 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.

Adopted as N-2, September 25, 1946, amended June 22, 1979

N-2. Subject to Rule N-l above, the employment, classification, promotion and assignment of persons on the staff of the Fund shall be made without discriminating against any person because of sex, race, creed, or nationality.

Adopted as N-l, September 25, 1946, amended June 22, 1979

N-3. Persons on the staff of the Fund, in the discharge of their functions, shall owe their duty entirely to the Fund and to no other authority, and shall neither seek nor accept instructions from any government or any authority external to the Fund.

Adopted September 25, 1946, amended June 22, 1979

N-4. Persons on the staff of the Fund shall maintain standards of conduct compatible with their position as international civil servants and shall avoid any action or pronouncement, either in their own country or elsewhere, that would not be in keeping with their position as international civil servants. They shall always bear in mind the reserve and tact incumbent upon them by reason of their international functions, and they shall exercise the utmost discretion in matters of official business.

Adopted September 25, 1946, amended June 22, 1979

N-5. Except with the express authorization of the Managing Director, persons on the staff of the Fund may not, during their term of service: (i) publish, cause to be published, or assist in the publication of any book, pamphlet, article, letter or other document relating to the policies or activities of the Fund or to any national political questions; or (ii) deliver any speech, lecture, or broadcast, or grant any press interview on such policies, activities, or questions.

Adopted September 25, 1946, amended June 22, 1979

N-6. Persons on the staff of the Fund, and persons formerly on the staff of the Fund, shall not, at any time, without the express authorization of the Managing Director: (i) reveal any unpublished information known to them by reason of their service with the Fund to a person not authorized by the Fund to receive the information; or (ii) use, or allow the use of, unpublished information known to them by reason of their service with the Fund for private advantage, directly or indirectly, or for any interest contrary to that of the Fund as determined by the Managing Director.

Adopted as part of N-5, September 25, 1946, amended June 22, 1979

N-7. Persons on the staff of the Fund, during their terms of service, including periods of leave with or without pay, shall not hold other public or private employment, engage in any occupation, business activity, or profession, that, in the opinion of the Managing Director, is incompatible with these Rules or the proper performance of their official duties or inconsistent with their position as international civil servants.

Adopted as N-6, September 25, 1946, amended June 22, 1979

N-8. Persons on the staff of the Fund shall not engage in such political activity as, in the opinion of the Managing Director, is inconsistent with, or reflects adversely upon, the independence and impartiality required by their position as international civil servants. Any person on the staff of the Fund who accepts an office of a political character shall immediately offer to resign from the staff of the Fund.

Adopted September 25, 1946, amended June 22, 1979

N-9. Persons on the staff of the Fund may retain re-employment rights or pension rights acquired in the service of another public or a private organization.

Adopted as N-7, September 25, 1946, amended June 22, 1979

N-10. No person on the staff may accept any honor, decoration, favor, gift, or bonus from any government, or from any other authority or person external to the Fund, for services rendered during the period of his appointment or service with the Fund.

Adopted as N-9, September 25, 1946

N-11. Upon appointment, each person on the staff will subscribe in writing to the following affirmation:

  • —I solemnly affirm:

  • —That, to the best of my ability, I will carry out my responsibilities in a manner that will further the purposes of the International Monetary Fund;

  • —That I will refrain from communicating confidential information to persons outside the Fund;

  • —That I will not use to private advantage information known to me by reason of my official position; and

  • —That I will accept no instruction in regard to the performance of my duties from any government or authority external to the Fund.

Adopted as N-10, September 25, 1946

N-12. The Managing Director shall inform the Executive Board at least two weeks in advance of any action to appoint or dismiss any person at or above the rank of division chief or receiving a salary equal to or exceeding that of a division chief. Such information shall not be necessary for other appointments or dismissals by the Managing Director.

Adopted as N-13, September 25, 1946, amended July 1, 1959, and June 22, 1979

N-13. The Managing Director is authorized to issue General Administrative Orders concerning general personnel policies that have been approved by the Executive Board.

Adopted as N-14, September 25, 1946, amended June 22, 1979

N-14. Persons on the staff of the Fund shall have the right to associate in order to present their views to the Managing Director and the Executive Board, through representatives, on matters pertaining to personnel policies and their conditions of service.

Adopted June 22, 1979

N-15. Appropriate procedures shall be established for the consideration of complaints and grievances of individual persons on the staff of the Fund on matters involving the consistency of actions taken in their individual cases with the regulations governing personnel and their conditions of service.

Adopted June 22, 1979

  • N-16. (a) Official travel shall be undertaken by persons on the staff of the Fund only with the approval of the Managing Director.

    • (b) The Managing Director shall inform the Executive Board of all such travel at least once a month and in such manner as indicates the purpose of the travel.

    • (c) (i) Official travel by persons on the staff of the Fund to a member’s territory shall be undertaken only after consultation with the Executive Director appointed, elected, or designated by the member.

      • (ii) In addition, normally, meetings of persons on the staff of the Fund with officials of a member to discuss official business shall be held only after consultation with the Executive Director appointed, elected, or designated by the member.

    • (d) The advance approval of the Executive Board shall be necessary for technical services by persons on the staff of the Fund in response to requests by national or international agencies. In addition, such approval shall be necessary for participation by persons on the staff of the Fund in the deliberations of national or international agencies, or in conferences, in which the views of the Executive Board on the subject matter of the deliberations or conferences are to be presented.

    • (e) For the purpose of this Rule N-16, official travel shall be deemed not to include travel solely in accordance with the provisions of staff benefit policies.

Paragraph (a) adopted as N-15(a), September 25, 1946, amended February 11, 1948, and June 22, 1979; paragraphs (b), (c), and (d) adopted as N-15(b), (c), (d), February 11, 1948, amended June 22, 1979; paragraph (e) adopted June 22, 1979

O—Valuation of the Special Drawing Right, Valuation of Currencies in Terms of the Special Drawing Right, Freely Usable Currency, Procedures for Exchange of Currency, and Operational Budget

Valuation of the Special Drawing Right

O-1. The value of the special drawing right shall be the sum of the values of the following amounts of the following currencies:

U.S. dollar0.40
Deutsche mark0.32
Japanese yen21
French franc0.42
Pound sterling0.050
Italian lira52
Netherlands guilder0.14
Canadian dollar0.070
Belgian franc1.6
Saudi Arabian riyal0.13
Swedish krona0.11
Iranian rial1.7
Australian dollar0.017
Spanish peseta1.5
Norwegian krone0.10
Austrian schilling0.28
Adopted September 18, 1969; amended June 13, 1974, effective July 1, 1974; July 1, 1974; April 1, 1978; and June 30, 1978, effective July 1, 1978
Adopted September 18, 1969; amended June 13, 1974, effective July 1, 1974; July 1, 1974; April 1, 1978; and June 30, 1978, effective July 1, 1978

Valuation of Currencies in Terms of the Special Drawing Right

  • O-2. (a) The value of the United States dollar in terms of the special drawing right shall be equal to the reciprocal of the sum of the equivalents in United States dollars of the amounts of the currencies specified in Rule O-1, calculated on the basis of exchange rates established in accordance with procedures decided from time to time by the Fund.

    • (b) The value of a currency other than the United States dollar in terms of the special drawing right shall be determined on the basis of the value of the United States dollar in terms of the special drawing right in accordance with (a) above and an exchange rate for that other currency determined as follows:

      • (i) for the currency of a member having an exchange market in which the Fund finds that a representative spot rate for the United States dollar can be readily ascertained, that representative rate;

      • (ii) for the currency of a member having an exchange market in which the Fund finds that a representative spot rate for the United States dollar cannot be readily ascertained but in which a representative spot rate can be readily ascertained for a currency as described in (i), the rate calculated by reference to the representative spot rate for that currency and the rate ascertained pursuant to (i) above for the United States dollar in terms of that currency;

      • (iii) for the currency of any other member, a rate determined by the Fund.

    • (c) Procedures to establish exchange rates under (b) above shall be determined by the Fund in consultation with members.

Adopted September 18, 1969; amended June 13, 1974, effective July 1, 1974; July 1, 1974; and April 1, 1978

Freely Usable Currency

  • O-3. (a) The Fund shall determine the currencies that are freely usable in accordance with Article XXX(f).

    • (b) The Fund shall consult a member before placing its currency on, or removing it from, the list of freely usable currencies.

Adopted April 1, 1978

Procedures for Exchange of Currency

  • O-4. (a) The Fund shall consult all members with respect to procedures for the prompt exchange of currency, or to facilitate such exchange, in connection with

    • (i) the operations and transactions of the Fund conducted through the General Resources Account, and

    • (ii) transactions with designation conducted through the Special Drawing Rights Department.

  • (b) On the request of any member, an Executive Director, or the Managing Director, the Executive Board shall decide whether procedures under (a) above for the exchange of currency are in accordance with the obligations of members.

  • (c) The Fund shall inform all members of the procedures for the exchange of each freely usable currency.

Adopted April 1, 1978

O-5. A member requesting an exchange of currency in accordance with the procedures under Rule O-4(a) shall make its request to the Fund not later than the date on which the Fund issues instructions for the execution of the operation or transaction that gives rise to the request.

Adopted April 1, 1978

  • O-6. (a) An exchange of currency in accordance with the procedures under Rule O-4(a) shall be made at an exchange rate between the two currencies corresponding to their exchange rates in terms of the special drawing right as determined under Rule O-2, if

    • (i) the exchange is requested under Article V, Section 3(e)(i) or (iv) or under Article V, Section 7(j)(i) or (iv), or

    • (ii) the procedures for the exchange of currency under Rule O-4(a) so provide.

  • (b) The exchange rate for each currency for the purposes of (a) above shall be determined as of the date of dispatch of the Fund’s instruction for the execution of the transaction or operation under (a) above.

  • (c) The value date for an exchange of currency under (a) above shall be the third business day after the date of dispatch of the Fund’s instruction under (b) above, or as close thereto as is practicable.

Adopted April 1, 1978

O-7. No member shall levy any charge or commission in respect of an exchange of currency to which Rule O-6 applies.

Adopted April 1, 1978

  • O-8. (a) An exchange of currency to which Rule O-6 applies shall be made by an official agency of the member issuing the currency, unless the members exchanging currency agree otherwise.

    • (b) Instruction for an exchange by an official agency under (a) above shall be given by the Fund.

Adopted April 1, 1978

  • O-9. (a) In an exchange pursuant to Article V, Section 7(j)(iv), the freely usable currency to be provided by the repurchasing member in the exchange shall be the freely usable currency agreed between the members exchanging currency.

    • (b) In the absence of agreement under (a) above, the Fund shall specify the freely usable currency to be provided by the repurchasing member. In making any such specification, the Fund shall take into account the circumstances of the members exchanging currency.

Adopted April 1, 1978

Operational Budget

  • O-10. (a) At quarterly intervals the Executive Board shall decide on the budget, including amounts, for the use of currencies and special drawing rights in the operations and transactions of the Fund conducted through the General Resources Account until the next decision takes effect.

    • (b) The Executive Board may decide at any time to adopt a special budget.

    • (c) On the request of any member, an Executive Director, or the Managing Director, the Executive Board shall review, and if necessary amend, any budget adopted pursuant to (a) or (b) above.

Adopted April 1, 1978

P—Procedures for Operations and Transactions Involving Special Drawing Rights

Transactions with Designation

  • P-1. (a) A participant shall inform the Fund of its intention to use special drawing rights in a transaction with designation. If it desires a particular freely usable currency the participant shall indicate this not later than the date on which the Fund issues instructions for the execution of the transaction.

    • (b) Instructions for a transaction pursuant to (a) above shall be given by the Fund in accordance with Rule O-2 and the procedures under Rule O-4(a), and shall be carried out promptly.

Adopted September 18, 1969, amended April 1, 1978

P-2. In a transaction with designation the freely usable currency shall be provided at an exchange rate determined under Rule O-2, and at an official agency of the participant issuing the currency.

Adopted April 1, 1978

P-3. No participant shall levy any charge or commission in respect of the provision of currency in a transaction with designation.

Adopted September 18, 1969, amended April 1, 1978

P-4. A participant using special drawing rights in a transaction with designation shall declare that the use is in accordance with Article XIX, Section 3(a), or a waiver under Article XIX, Section 3(c).

Adopted September 18, 1969, amended April 1, 1978

Designation of Participants to Provide Currency

P-5. At quarterly intervals the Executive Board shall decide, in accordance with Article XIX, Section 5, and Schedule F, on the plan, including amounts, by which designations will be made until the next decision takes effect.

On the request of any participant, an Executive Director, or the Managing Director, the Executive Board shall review, and if necessary amend, any plan adopted pursuant to this Rule.

Adopted September 18, 1969, amended April 1, 1978

Transactions by Agreement Between Participants

  • P-6. (a) Currency shall be provided in a transaction by agreement between participants at an exchange rate determined under Rule O-2 for the third business day preceding the value date, or for the second business day preceding the value date if agreed between the participants, unless the transaction is carried out at another exchange rate pursuant to authorization by the Fund under Article XIX, Section 7(b).

    • (b) No participant shall levy any charge or commission in respect of a transaction under Article XIX, Section 2(b).

Adopted April 1, 1978

Prescribed Operations

P-7. The parties to an operation pursuant to a prescription under Article XIX, Section 2(c) shall declare that the operation is in accordance with the prescription.

Adopted September 18, 1969, amended April 1, 1978

Recording

P-8. A participant using special drawing rights in a transaction shall inform the Fund immediately of the receipt of currency in accordance with the Articles of Agreement and these Rules and Regulations.

Adopted September 18, 1969, amended April 1, 1978

P-9. The Fund shall record a transaction or an operation in the Special Drawing Rights Department when it is satisfied that the transaction or the operation is in conformity with the obligations of participants under the Articles of Agreement and with the Rules and Regulations and any applicable decisions of the Fund. A transaction shall be recorded as of the date on which currency is provided, and an operation shall be recorded as of the date on which it is carried out.

Adopted September 18, 1969, amended April 1, 1978

Q—Other Holders

Q-1. An application for prescription by the Fund as a holder of special drawing rights, and of the terms and conditions for holding, accepting, and using special drawing rights in operations and transactions, shall be filed with the Fund with all relevant facts. Terms and conditions shall be prescribed by the Executive Board after consultation with the applicant.

Adopted April 1, 1978

R—Reconstitution

R-1. Any period of five years ending five years after the first allocation or at the end of any calendar quarter thereafter shall be a reconstitution period under Schedule G, paragraph 1.

Adopted September 18, 1969

R-2. The calculations for each participant under Schedule G, paragraph l(a)(ii), shall be based on the assumptions that the Executive Board makes from time to time with respect to allocations or cancellations during the remainder of any reconstitution period, and on the assumption that a participant will make no use of special drawing rights during the remainder of the reconstitution period for which the calculation is made except for payment to the Fund of any excess of charges over interest in the Special Drawing Rights Department, provided that allocations or cancellations shall be assumed for a basic period only on the basis of a decision by the Board of Governors under Article XVIII, Section 4 or a pending proposal by the Managing Director under that provision.

Adopted September 18, 1969, amended December 15, 1972, and April 1, 1978

R-3. When these calculations indicate that a participant would need to obtain special drawing rights in order to comply with the requirement in Schedule G, paragraph 1(a)(i), the Managing Director shall inform the participant of the amount it would have to obtain and hold during the remainder of the reconstitution period in order to comply with this requirement. This amount shall be expressed both

  • (i) as a single amount assumed to be acquired on the last day of the calendar month following the date for which the calculation is made; and

  • (ii) as a series of equal quarterly amounts assumed to be acquired on the fifteenth day of each full calendar quarter remaining in the reconstitution period.

Adopted September 18, 1969, amended December 15, 1972

R-4. When these calculations indicate that a participant would need to obtain special drawing rights for any reconstitution period in an amount per quarter that equals or exceeds 10 per cent of the participant’s net cumulative allocation at the end of the reconstitution period, the participant shall be subject to designation under Article XIX, Section 5(a)(ii), as of the beginning of the calendar quarter following the calculation, for an amount of special drawing rights equal to the largest amount per quarter calculated for any reconstitution period.

Adopted September 18, 1969, amended April 1, 1978

R-5. The Managing Director shall give the special notice required under Schedule G, paragraph l(a)(iii), when these calculations indicate that the quarterly amount of special drawing rights which the participant needs to obtain in order to comply with the reconstitution requirement in Schedule G, paragraph 1(a)(i), for any reconstitution period equals or exceeds 50 per cent of its net cumulative allocation at the end of the reconstitution period.

Adopted September 18, 1969

R-6. The Fund shall specify the participant and the amount of special drawing rights it shall provide when this is required by Schedule G, paragraph 1(a)(iv); Article XX, Section 5; and Article XXIV, Section 3.

Adopted September 18, 1969, amended April 1, 1978

S—Suspension of Use of Special Drawing Rights

S-1. The Managing Director shall report to the Executive Board any facts on the basis of which it appears to him that a participant is not fulfilling obligations under the Articles that could lead to suspension under Article XXIII, Section 2, and may include a complaint in his report.

Adopted September 18, 1969, amended April 1, 1978

S-2. A participant may complain that another participant is not fulfilling obligations under the Articles that could lead to suspension under Article XXIII, Section 2, and the Managing Director shall transmit the complaint to the Executive Board with his comments. Any complaint shall be made in writing or by any rapid means of communication, and it shall be accompanied by a statement of the facts on which the participant bases its complaint.

Adopted September 18, 1969, amended April 1, 1978

S-3. The Managing Director shall immediately inform a participant of any complaint against it and the statement of the facts on which the complaint is based.

Adopted September 18, 1969

S-4. If the complaint is that the participant has failed to fulfill its obligations under Article XIX, Section 4, the participant shall not use special drawing rights and this limitation shall continue pending the disposition of the complaint.

Adopted September 18, 1969, amended April 1, 1978

S-5. A participant against which a complaint has been made under Rule S-l or Rule S-2, the Managing Director, or an Executive Director may request the Executive Board to dismiss the complaint. The Executive Board shall consider the request forthwith.

Adopted September 18, 1969, amended April 1, 1978

S-6. If the right of a participant to use special drawing rights has been limited under Rule S-4, and a request under Rule S-5 has been made by a participant, the complaint shall be deemed to have been dismissed at the end of ten business days after the request, or at the end of such longer period as the participant states in the request, unless within this time the Executive Board has taken a decision disposing of the complaint.

Adopted September 18, 1969, amended April 1, 1978

S-7. If the right of a participant to use its special drawing rights has been suspended under Article XXIII, Section 2, the participant may request the Executive Board to terminate the suspension. If the Executive Board decides not to terminate the suspension, a written report shall be made to the participant stating the circumstances under which the suspension would be terminated.

Adopted September 18, 1969, amended April 1, 1978

S-8. All procedures under Rules S-l through S-7 shall be conducted as expeditiously as possible, and shall allow the participant an adequate opportunity to state its case both orally and in writing.

Adopted September 18, 1969, amended April 1, 1978

T—Interest, Charges, and Assessments in Respect of Special Drawing Rights

  • T-1. (a) Interest and charges in respect of special drawing rights shall accrue daily at the rate referred to in (b) below and shall be paid promptly as of the end of each financial year of the Fund. The accounts of participants shall be credited with the excess of interest due over charges or debited with the excess of charges over the interest due. The accounts of holders that are not participants shall be credited with the interest due.

    • (b) Unless the Executive Board decides otherwise, the rate of interest on holdings of special drawing rights for each calendar quarter shall be four fifths of the combined market interest rate as determined in (c) below, provided that the rate shall be rounded to the nearest ¼ of 1 per cent.

    • (c) The combined market interest rate shall be the average of the daily interest rates for the obligations, combined in accordance with the weights listed below, for the six-week period ending on the fifteenth day of the last month before the calendar quarter for which the rate of interest is determined:

Per cent
Market yields for three-month U.S.
Treasury bills49
Three-month interbank deposits rate in
Germany18
Market yields for three-month U.K.
Treasury bills11
Three-month interbank money rate against
private paper in France11
Call money market rate (unconditional) in
Japan11
100
  • (d) The Fund will review the rate of interest on holdings of special drawing rights before the beginning of each calendar quarter.

Adopted September 18, 1969, amended June 13, 1974, June 30, 1976, April 1, 1978, and June 15, 1978, effective July 1, 1978; paragraph (b) amended October 25, 1978, effective January 1, 1979

T-2. Assessments shall be levied promptly, as of the end of each financial year of the Fund, on the basis of a reasonable estimate of the expenses of conducting the business of the Special Drawing Rights Department for the financial year, and the accounts of participants shall be debited with the amounts of the assessments.

Adopted September 18, 1969, amended April 1, 1978

NOTE TO RULES I-7(5)(b) and I-7(6):

Charges for amounts in excess of 200 per cent of quota purchased under stand-by arrangements or in excess of 140 per cent of quota under the extended Fund facility granted between April 21, 1978 and February 23, 1979, when the supplementary financial facility became effective, are levied under Executive Board Decision No. 5732-(78/65), adopted April 24, 1978, as amended by Executive Board Decision No. 5998-(79/l), adopted December 27, 1978, as set forth below:

  • 1. Effective April 21, 1978, segments of a currency that would otherwise be subject to the schedule of charges in Rule I-7(5)(b) shall be subject to the following charges if they have been acquired by the Fund as a result of purchases under stand-by arrangements taking effect before the earlier of July 1, 1979 and the date on which the supplementary financing facility becomes effective and are in excess of 200 per cent of quota: the average yield to constant five-year maturity of U.S. Government securities in New York over the six months preceding the determination of the rate of charge, rounded upwards to the nearest ¼ of 1 per cent, plus ¼ of 1 per cent. The rate applicable under this paragraph 1 shall be calculated on July 1, 1978 and at intervals of six months thereafter. Each rate so calculated shall apply during the six months preceding the date of the calculation.

  • 2. Effective April 21, 1978, segments of a currency that would otherwise be subject to Rule 1-7(6) shall be subject to the rate in paragraph 1 above if they have been acquired by the Fund as a result of purchases under extended arrangements taking effect before the earlier of July 1, 1979 and the date on which the supplementary financing facility becomes effective, to the extent that the Fund’s holdings of the member’s currency resulting from purchases under that facility exceed 140 per cent of quota.

  • 3. The charges payable pursuant to this decision shall be paid promptly after each June 30 and December 31.

See Note on p. 481 below.

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