The International monetary fund 1966-1971 : the system under stress. Volume 2, Documents

Cover
Contents
	PART ONE: The Fund's Plans for Reserve Creation
		THE MANAGING DIRECTOR'S PROPOSALS OF 1966
			(A) Creation of Additionjal Reserves Through the International Monetary Fund (March 3, 1966)
			(B) Creation of Additional Reserves Through the International Monetary Fund—Supplementary Notes (March 28, 1966)
		ILLUSTRATIVE SCHEMES
			(A) Outline of an Illustrative Reserve Unit Scheme (February 23, 1967)
			(B) Outline of an Illustrative Scheme for a Special Reserve Facility Based on Drawing Rights in the Fund (February 28, 1967)
		TENTATIVE OUTLINES
			(A) An Outline of a Reserve Facility Based on Drawing Rights in the Fund (May 29, 1967)
			(B) An Outline of a Reserve Facility Based on Reserve Units and Administered by a Fund Affiliate (June 8, 1967)
			(C) An Outline of a Reserve Facility Based on Drawing Rights in the Fund—Revised (June 8, 1967)
	PART TWO: Final Outline and Proposed Amendment
		AGREED OUTLINE
			Outline of a Facility Based on Special Drawing Rights in the Fund (September 29, 1967)
		PROPOSED AMENDMENT OF ARTICLES OF AGREEMENT
			Establishment of a Facility Based on Special Drawing Rights in the International Monetary Fund and Modifications in the Rules and Practices of the Fund (April 1968)
	PART THREE: Basic Documents
		ARTICLES OF AGREEMENT
			Articles of Agreement of the International Monetary Fund (July 28, 1969)
		Index to Articles of Agreement
		BY-LAWS AND RULES AND REGULATIONS
			By-Laws of the International Monetary Fund (March 20, 1972)
			Rules and Regulations of the International Monetary Fund (March 20, 1972)
		EXECUTIVE BOARD DECISIONS
			Selected Decisions of the Executive Board (January 1, 1966–December 31, 1971)
	PART FOUR: Special Reports
		STABILIZATION OF PRICES OF PRIMARY PRODUCTS
			Report of the Executive Directors (June 27, 1969)
			Scope for Action by the Fund (Part II of a Staff Study)
		ALLOCATION OF SPECIAL DRAWING RIGHTS
			A Report to the Board of Governors of the International Monetary Fund Containing the Managing Director's Proposal on the Allocation of Special Drawing Rights for the First Basic Period (September 12, 1969)
		INCREASES IN QUOTAS OF MEMBERS—FIFTH GENERAL REVIEW
			Report of the Executive Directors to the Board of Governors (December 24, 1969)
		MECHANISM OF EXCHANGE RATE ADJUSTMENT
			The Role of Exchange Rates in the Adjustment of International Payments (September 1970)
		FUNCTIONING OF INTERNATIONAL MONETARY SYSTEM
			International Monetary System (October 1, 1971): Resolution No. 26-9
	PART FIVE: Publications
		PUBLICATIONS OF THE FUND, 1966–71
TABLE OF CONTENTS
	Introduction
	PART I: The New Facility
		1. General Comments
		2. The Special Drawing Account
		3. Participation in the Special Drawing Account
		4. Holders of Special Drawing Rights Other than Participants
		5. Recording and Information
		6. Principles Governing Allocations and Cancellations
		7. First Decision to Allocate Special Drawing Rights
		8. Allocation and Cancellation
		9. Decisions on Allocations and Cancellations
		10. Operations and Transactions in Special Drawing Rights
		11. Receipt of Allocations
		12. Character of Special Drawing Rights
		13. Designation of Participants to Provide Currency
		14. Transactions Not Requiring Designation
		15. Requirement of Need
		16. Transactions Without Requirement of Need
		17. Reconstitution
		18. Operations and Transactions Through the General Account
		19. Exchange Rates
		20. Interest and Charges
		21. Expenses of the Special Drawing Account
		22. Administration of the Special Drawing Account
		23. Suspension of Participants' Use of Special Drawing Rights
		24. Definition of Currency Convertible in Fact for Transactions in Special Drawing Rights
		25. Definition of Reserve Position in the Fund
		26. Termination of Participation
		27. Liquidation
	PART II: Modifications in Rules and Practices of the Fund
		28. General Comments
		29. Quota Changes and Related Matters
		30. Uniform Proportionate Changes in Par Values and Maintenance of Gold Value
		31. Temporary Character of Use of the Fund's Resources
		32. Legal Automaticity of Gold Tranche Purchases
		33. Definition of Gold Tranche Purchases
		34. Termination of Power to Establish New Unconditional Facilities in the General Account
		35. Rules on Repurchase
		36. Service Charge
		37. Remuneration
		38. Distribution of Net Income
		39. Interpretation
	PART III: Procedure
		40. Applicable Legal Provisions
		41. Resolution of Board of Governors
		42. Acceptance of Proposed Amendment by Members
		43. Entry into Force of Proposed Amendment
		44. Notification to Depositary of Articles of Agreement
	ANNEX A: Resolution
		A. Introductory Article
		B. Article I. Purposes
		C. Article III. Quotas and Subscriptions
		D. Article IV. Par Values of Currencies
		E. Article V. Transactions with the Fund
		F. Article VI. Capital Transfers
		G. Article XII. Organization and Management
		H. Article XVIII. Interpretation
		I. Article XIX. Explanation of Terms
		J. Article XX. Final Provisions
		K. Articles XXI through XXXII
			Article XXI. Special Drawing Rights
			Article XXII. General Account and Special Drawing Account
			Article XXIII. Participants and Other Holders of Special Drawing Rights
			Article XXIV. Allocation and Cancellation of Special Drawing Rights
			Article XXV. Operations and Transactions in Special Drawing Rights
			Article XXVI. Special Drawing Account Interest and Charges
			Article XXVII. Administration of the General Account and the Special Drawing Account
			Article XXVIII. General Obligations of Participants
			Article XXIX. Suspension of Transactions in Special Drawing Rights
			Article XXX. Termination of Participation
			Article XXXI. Liquidation of the Special Drawing Account
			Article XXXII. Explanation of Terms with Respect to Special Drawing Rights
		L. Schedule B. Provisions with Respect to Repurchase by a Member of its Currency Held by the Fund
		M. Schedules F through I
			Schedule F. Designation
			Schedule G. Reconstitution
			Schedule H. Termination of Participation
			Schedule I. Administration of Liquidation of the Special Drawing Account
	ANNEX B
Contents
	1. Places of Business
	2. General Account and Special Drawing Account
	3. Meetings of the Board of Governors
	4. Notice of Meetings of the Board of Governors
	5. Attendance at Meetings
	6. Agenda of Meetings of the Board of Governors
	7. Election of Chairman and Vice-Chairmen
	8. Secretary
	9. Minutes
	10. Report of Executive Directors
	11. Voting
	12. Proxies
	13. Voting Without Meeting
	14. Terms of Service
	15. Delegation of Authority
	16. Rules and Regulations
	17. Vacant Directorships
	18. Additional Directors
	19. Representation of Members Not Entitled to Appoint a Director
	20. Budget and Audits
	21. Applications for Membership
	22. Compulsory Withdrawal
	23. Committee on Interpretation
	24. Settlement of Disagreements
	25. Other Holders
	26. Amendment of By-Laws
CONTENTS
	A. Scope of Rules and Regulations
	B. Terms, Definitions, and Symbols Employed in This Document
	C. Meeting of the Executive Board
		Meetings
		Agenda
		Voting
		Language
		Minutes
	D. Application for Membership, Changes in Quotas, and Application to Be An Other Holder of Special Drawing Rights
		Application for Membership
		Quotas
		Other Holders
	E. Subscriptions
	F. Par Values
	G. Operations and Transactions
		Foreign Exchange
		Gold
	H. Exchange Controls, Currency Practices, and Agreements
	I. Repurchases and Charges in Respect of General Account Transactions
	J. Accounting and Reporting
		Accounts
		Annual Budget
		Annual Report
		Audit
	K. Limitation and Ineligibility
	L. Capital Transfers
	M. Relations with Non-Members
	N. Staff Regulations
		Personnel
		Travel
	O. Transactions Involving Special Drawing Rights
		Currency Convertible in Fact
		Exchange Rates
		Provision and Conversion of Currency
		Notification
		Recording
		Designation of Participants to Provide Currency
		Transactions Without Designation
		Transactions Without the Requirement of Need
	P. Reconstitution
	Q. Interest, Charges, and Assessments in Respect of Special Drawing Rights
	R. Suspension of Use of Special Drawing Rights
CONTENTS
	Introduction
	Part I. Need to Supplement Reserves
		1. Past Developments in the Supply of Reserves
		2. Basic Criteria of Reserve Adequacy
		3. Reserves and the Adjustment Process
		4. Prospective Need for Reserve Supplementation
	Part II. Elements of the Proposal
		5. Proposed Basic Period and Amounts of Allocation
		6. Allocations as Percentages of Quota
	Part III. Proposal for the Allocation of Special Drawing Rights
		Draft Resolution
	Appendix: Illustrative Tables
TABLE OF CONTENTS
	PART I. Review and Analysis
		A. The Present System
		Chapter 1. Exchange Rates in the Bretton Woods System
			a. The exchange rate in its international aspect
			b. The exchange rate in its domestic aspect
		Chapter 2. The Working of the System
			a. Market convertibility in modern conditions
			b. Margins on spot rates
			c. Forward rates
			d. Capital transactions
			e. Observance of par value obligations
			f. Attitude toward fluctuating rates
		Chapter 3. Achievements and Problems of the System
			a. The system and its implementation
			b. Achievements
			c. Problems
			d. Some observations on the balance between devaluations and revaluations
		B. Proposals for Changes
		General Criterion
		Chapter 4. Regimes Inconsistent with the Par Value System
			a. Freely floating exchange rates
			b. Substantially wider margins
			c. Automatic adjustment of parities
		Chapter 5. Changes in Par Values: Criteria and Procedures
			a. The concept of fundamental disequilibrium and use of the existing arrangements
			b. Possible measures to facilitate prompt adjustment of parities
			c. Temporary deviations from par value obligations
		Chapter 6. Effects of a Slight Widening of Exchange Rate Margins
			a. Effects of slightly wider margins without parity changes
			b. Effects on transition to a new par value
			c. Effects on forward rates, on third countries, and on regional relationships
			d. Effects on developing countries and other primary producing countries
	PART II. Implications for Policy
		1. Introduction
		2. Basic Principles of the Par Value System
		3. Alternative regimes
		4. Proposals for adapting the par value system
			a. Prompt adjustment of parities in appropriate cases
			b. A slight widening in the margins around parity
			c. Temporary deviations from par value obligations