Abstract

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

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

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

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

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

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