Page:United States Statutes at Large Volume 60 Part 2.djvu/316

 1404 Rates for exchange tranactlons. Pot, p. 1427. INTERNATIONAL AGREEMENTS OTHER THAN TREATIES [60 STAT. Section 2. Gold purchases based on par values The Fund shall prescribe a margin above and below par value for transactions in gold by members, and no member shall buy gold at a price above par value plus the prescribed margin, or sell gold at a price below par value minus the prescribed margin. Section 3. Foreignexchange dealings based on parity The maximum and the minimum rates for exchange transactions between the currencies of members taking place within their terri- tories shall not differ from parity. (i) in the case of spot exchange transactions, by more than one percent; and (ii) in the case of other exchange transactions, by a margin which exceeds the margin for spot exchange transactions by more than the Fund considers reasonable. Section 4. Obligations regarding exchange stability (a) Each member undertakes to collaborate with the Fund to pro- mote exchange stability, to maintain orderly exchange arrangements with other members, and to avoid competitive exchange alterations. (b) Each member undertakes, through appropriate measures con- sistent with this Agreement, to permit within its territories exchange transactions between its currency and the currencies of other members only within the limits prescribed under Section 3 of this Article. A member whose monetary authorities, for the settlement of interna- tional transactions, in fact freely buy and sell gold within the limits prescribed by the Fund under Section 2 of this Article shall be deemed to be fulfilling this undertaking. Section 5. Changesin par values (a) A member shall not propose a change in the par value of its cur- rency except to correct a fundamental disequilibrium. (b) A change in the par value of a member's currency may be made only on the proposal of the member and only after consultation with the Fund. (c) When a change is proposed, the Fund shall first take into account the changes, if any, which have already taken place in the initial par value of the member's currency as determined under Article XX, Section 4. If the proposed change, together with all previous changes, whether increases or decreases, (i) does not exceed ten percent of the initial par value, the Fund shall raise no objection, (ii) does not exceed a further ten percent of the initial par value, the Fund may either concur or object, but shall declare its attitude within seventy-two hours if the member so requests, (iii) is not within (i) or (ii) above, the Fund may either concur or object, but shall be entitled to a longer period in which to declare its attitude. (d) Uniform changes in par values made under Section 7 of this Article shall not be taken into account in determining whether a pro- posed change falls within (1), (ii),or (iil) of (c) above.

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