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1947

The Royal Netherlands Government and the Government of the French Republic, considering that it is in their common interest to establish and maintain an official rate of exchange between the Netherlands Indies guilder and the franc, have agreed as follows:

The official rate of exchange between the franc and the Netherlands Indies guilder (as defined in Article 12 and hereinafter referred to as the guilder) shall be 23.25 francs to the guilder, based on the last officially quoted rate in London for the guilder and on the official rate of exchange for the franc in London.

No change in such rate will be made without prior agreement between the two contracting Governments.

The contracting Governments will be solely responsible as regards the quotation of their respective currencies in markets of third countries. But they will always consult together on the policy to be followed in regard to this question and on any intervention which may seem necessary.

The Banque de France and the Javasche Bank will sell to one another francs for guilders and guilders for francs at the official rate.

(1) No limit will be fixed to the amounts of francs or guilders to be purchased in accordance with the preceding Article.

(2) If the Javasche Bank should at any time hold francs in excess of 1 milliard francs, the excess shall be applied to the purchase of French Treasury Bills, to be denominated in guilders, calculated at the official rate of the day of purchase, and to be issued in amounts of guilders equivalent to 10 million francs or multiples thereof.

(3) Similar arrangements shall apply as regards the investment of amounts in guilders held by the Banque de France in excess of 43 million guilders. These amounts shall be applied to the purchase of Treasury Bills of the Netherlands