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The Royal Netherlands Government of the one part and the Government of the United Kingdom of Great Britain and Northern Ireland of the other part have agreed as follows:—

Article I (i) The rate of exchange between the Netherlands guilder and the £ sterling shall be Netherlands guilders 10.691 = £ 1. (ii) This rate (hereinafter referred to as "the official rate") shall not be varied by either of the Contracting Governments except after mutual consultation. (iii) In all territories where they have jurisdiction the Contracting Governments shall enforce the use of the official rate as the basis of all transactions involving a relationship between the two currencies. (iv) The Bank of England and De Nederlandsche Bank, as agents of their respective Governments, shall fix by mutual agreement the maximum spread above or below the official rate which will be authorised on the markets which they control.

Article 2 (i) The Bank of England (acting as agents of the United Kingdom Government) shall sell sterling to De Nederlandsche Bank (acting as agents of the Royal Netherlands Government) as may be required for payments which residents of the Netherlands Monetary Area, under the exchange regulations in force in that area, are permitted to make to residents of the sterling area -

a) against Netherlands guilders to be credited at the official rate to the Bank of England's No. 1 Account with De Nederlandsche Bank, provided that the balance standing to the credit of that Account is not thereby increased above 53,450,000 Netherlands guilders; or b) if the balance standing to the credit of the Bank of England's No. 1 Account with De Nederlandsche Bank amounts to 53,450,000 Netherlands