What Are The Articles Of Agreement Of The International Monetary Fund

The Fund cooperates, as part of this agreement, with all general international organizations and with international public organizations that have specialized missions in related areas. Any provision for such cooperation, which would involve a modification of a provision of this agreement, can only be made after amending this agreement, in accordance with Article XXVIII. Each member undertakes to cooperate with the Fund and other members to ensure that the member`s foreign exchange reserve policy is consistent with the objectives of promoting better international surveillance of international liquidity and makes the special draw the main reserve product of the international monetary system. In addition to commitments made with respect to special drawing rights arising from other articles of this agreement, each participant undertakes to cooperate with the Fund and other participants to ensure the proper functioning of the Underwriting Rights Department and the correct use of special drawing rights in accordance with this agreement and to make the Special Drawing Right the main reserve asset of the international monetary system. 2. If the Fund`s holdings in the member`s currency are not sufficient to pay the net amount owed by the Fund, the balance is paid in a freely usable currency or in some other form that can be agreed upon. If the Fund and the outgoing member fail to reach an agreement within six months of the date of withdrawal, the currency in question, which the Fund holds, is immediately paid to the outgoing member. The balance payable is paid in ten semi-annual instalments over the next five years. Each of these tranches is paid, at the Fund`s choice, either in the outgoing member`s currency acquired at the exit of the fund, or in a freely usable currency.

The money the Fund receives from a resilient participant is used by the Fund to exchange special drawing rights held by participants in proportion to the amount of each participant`s participation in special drawing rights at the time the Fund receives the coin for its cumulative net allocation. Special drawing rights thus collected and special drawing rights received by a participant terminate, in accordance with the provisions of this agreement, in order to satisfy any waterproofing agreement or scheduleD rates due and charged at this rate are void. 7. When an amendment is proposed, the Fund approves or contradicts the proposed face value within a reasonable period of time after receiving the proposal. The Fund agrees when it is convinced that change is necessary to correct or prevent a fundamental imbalance. The Fund must not object to the internal social or political policy of the member proposing the amendment. A proposed change in face value will not come into effect for the purposes of this agreement if the Fund opposes it. If a member changes the face value of his currency despite the Fund`s objection, the member is subject to Article XXVI, Section 2.