Bretton Woods Agreement Act

The Bretton Woods Agreements
(a) Articles of Agreement of the International Bank for
Reconstruction and Development, July 22, 1944
The Governments on whose behalf the present Agreement is signed agree as follows:
INTRODUCTORY ARTICLE
The International Ba nk for Reconstruction and Development is established and shall operate
in accordance with the following provisions:
ARTICLE I. PURPOSES
The purposes of the Bank are:
(i) To assist in the reconstruction and development of territories of members by facilitating
the investment of capital for productive purposes, including the restoration of economies
destroyed or disrupted by war, the reconversion of productive facilities to peacetime needs and
the encouragement of the development of productive facilities and resources in less developed
countries.
(ii) To promote private foreign investment by means of guarantees or participations in loans
and other investments made by private investors; and when private capital is not available on
reasonable terms, to supplement private investment by providing, on suitable conditions, finance
for productive purposes out of its own capital, funds raised by it and its other resources.
(iii) To promote the long-range balanced growth of international trade and the maintenance of
equilibrium in balances of payments by encouraging international investment for the
development of the productive resources of members, thereby assisting in raising productivity,
the standard of living and conditions of labor in their territories.
(iv) To arrange the loans made or guaranteed by it in relation to international loans through
other channels so that the more useful and urgent projects, large and small alike, will be dealt
with first.
(v) To conduct its operations with due regard to the effect of international investment on
business conditions in the territories of members and, in the immediate post-war years, to assist
in bringing about a smooth transition from a wartime to a peacetime economy.
The Bank shall be guided in all its decisions by the purposes set forth above.

ARTICLE II. MEMBERSHIP IN AND CAPITAL OF THE BANK
SECTION 1. MEMBERSHIP
(a) The original members of the Bank shall be those members of the International Monetary
Fund which accept membership in the Bank before the date specified in Article XI, Section 2 (e).
(b) Membership shall be open to other members of the Fund, at such times and in accordance
with such terms as may be prescribed by the Bank.
SECTION 2. AUTHORIZED CAPITAL
(a) The authorized capital stock of the Bank shall be $10,000,000,000, in terms of United
States dollars of the weight and fineness in effect on July 1, 1944. The capital stock shall be
divided into 100,000 shares having a par value of $100,000 each, which shall be available for
subscription only by members.
(b) The capital stock may be increased when the Bank deems it advisable by a three-fourths
majority of the total voting power.
SECTION 3. SUBSCRIPTION OF SHARES
(a) Each member shall subscribe shares of the capital stock of the Bank. The minimum
number of shares to be subscribed by the original members shall be those set forth in Schedule
A. The minimum number of shares to be subscribed by other members shall be determined by
the Bank, which shall reserve a sufficient portion of its capital stock for subscription by such
members.
(b) The Bank shall prescribe rules laying down the conditions under which members may
subscribe shares of the authorized capital stock of the Bank in addition to their minimum
subscriptions.
(c) If the authorized capital stock of the Bank is increased, each member shall have a
reasonable opportunity to subscribe, under such conditions as the Bank shall decide, a proportion
of the increase of stock equivalent to the proportion which its stock theretofore subscribed bears
to the total capital stock of the Bank, but no member shall be obligated to subscribe any part of
the increased capital.
SECTION 4. ISSUE PRICE OF SHARES
Shares included in the minimum subscriptions of original members shall be issued at par.
Other shares shall be issued at par unless the Bank by a majority of the total voting power
decides in special circumstances to issue them on other terms.

SECTION 5. DIVISION AND CALLS OF SUBSCRIBED CAPITAL
The subscription of each member shall be divided into two parts as follows:
(i) twenty percent shall be paid or subject to call under Section 7 (i) of this Article as needed
by the Bank for its operations;
(ii) the remaining eighty percent shall be subject to call by the Bank only when required to
meet obligations of the Bank created under Article IV, Sections I (a) (ii) and (iii).
Calls on unpaid subscriptions shall be uniform on all shares.
SECTION 6. LIMITATION ON LIABILITY
Liability on shares shall be limited to the unpaid portion of the issue price of the shares.
SECTION 7. METHOD OF PAYMENT OF SUBSCRIPTIONS FOR SHARES
Payment of subscriptions for shares shall be made in gold or United States dollars and in the
currencies of the members as follows:
(i) under Section 5 (i) of this Article, two percent of the price of each share shall be payable
in gold or United States dollars, and, when calls are made, the remaining eighteen percent shall
be paid in the currency of the member;
(ii) when a call is made under Section 5 (ii) of this Article, payment ma y be made at the
option of the member either in gold, in United States dollars or in the currency required to
discharge the obligations of the Bank for the purpose for which the call is made;
(iii) when a member makes payments in any currency under (i) and (ii) above, such payments
shall be made in amounts equal in value to the member's liability under the call. This liability
shall be a proportionate part of the subscribed capital stock of the Bank as authorized and defined
in Section 2 of this Article.
SECTION 8. TIME OF PAYMENT OF SUBSCRIPTIONS
(a) The two percent payable on each share in gold or United States dollars under Section 7 (i)
of this Article, shall be paid within sixty days of the date on which the Bank begins operations,
provided that
(i) any original member of the Bank whose metropolitan territory has suffered from enemy
occupation or hostilities during the present war shall be granted the right to postpone payment of
one-half percent until five years after that date;

(ii) an original member who cannot make such a payment because it has not recovered
possession of its gold reserves which are still seized or immobilized as a result of the war may
postpone all payment until such date as the Bank shall decide.
(b) The remainder of the price of each share payable under Section 7 (i) of this Article shall
be paid as and when called by the Bank, provided that
(i) the Bank shall, within one year of its beginning operations, call not less than eight percent
of the price of the share in addition to the payment of two percent referred to in (a) above;
(ii) not more than five percent of the price of the share shall be called in any period of three
months.
SECTION 9. MAINTENANCE OF VALUE OF CERTAIN CURRENCY HOLDINGS OF
THE BANK
(a) Whenever (i) the par value of a member's currency is reduced, or (ii) the foreign exchange
value of a member's currency has, in the opinion of the Bank, depreciated to a significant extent
within that member's territories, the member shall pay to the Bank within a reasonable time an
additional amount of its own currency sufficient to maintain the value, as of the time of initial
subscription, of the amount of the currency of such member which is held by the Bank and
derived from currency originally paid in to the Bank by the member under Article II, Section 7
(i), from currency referred to in Article IV, Section 2 (b), or from any additional currency
furnished under the provisions of the present paragraph, and which has not been repurchased by
the member for gold or for the currency of any member which is acceptable to the Bank.
(b) Whenever the par value of a member's currency is increased, the Bank shall return to such
member within a reasonable time an amount of that member's currency equal to the increase in
the value of the amount of such currency described in (a) above.
(c) The provisions of the preceding paragraphs may be waived by the Bank when a uniform
proportionate change in the par values of the currencies of all its members is made by the
International Monetary Fund.
SECTION 10. RESTRICTION ON DISPOSAL OF SHARES
Shares shall not be pledged or encumbered in any manner whatever and they shall be
transferable only to the Bank.

ARTICLE III. GENERAL PROVISIONS RELATING TO LOANS AND
GUARANTEES
SECTION 1. USE OF RESOURCES
(a) The resources and the facilities of the Bank shall be used exclusively for the benefit of
members with equitable consideration to projects for development and projects for
reconstruction alike.
(b) For the purpose of facilitating the restoration and reconstruction of the economy of
members whose metropolitan territories have suffered great devastation from enemy occupation
or hostilities, the Bank, in determining the conditions and terms of loans made to such members,
shall pay special regard to lightening the financial burden and expediting the completion of such
restoration and reconstruction.
SECTION 2. DEALINGS BETWEEN MEMBERS AND THE BANK
Each member shall deal with the Bank only through its Treasury, central bank, stabilization
fund or other similar fiscal agency, and the Bank shall deal with members only by or through the
same agencies.
SECTION 3. LIMITATIONS ON GUARANTEES AND BORROWINGS OF THE BANK
The total amount outstanding of guarantees, participations in loans and direct loans made by
the Bank shall not be increased at any time, if by such increase the total would exceed one
hundred percent of the unimpaired subscribed capital, reserves and surplus of the Bank.
SECTION 4. CONDITIONS ON WHICH THE BANK MAY GUARANTEE OR MAKE
LOANS
The Bank may guarantee, participate in, or make loans to any member or any political subdivision thereof and any business, industrial, and agricultural enterprise in the territories of a
member, subject to the following conditions:
(i) When the member in whose territories the project is located is not itself the borrower, the
member or the central bank or some comparable agency of the member which is acceptable to
the Bank, fully guarantees the repayment of the principal and the payment of interest and other
charges on the loan.
(ii) The Bank is satisfied that in the prevailing market conditions the borrower would be
unable otherwise to obtain the loan under conditions which in the opinion of the Bank are
reasonable for the borrower.
(iii). A competent committee, as provided for in Article V, Section 7, has submitted a written
report recommending the project after a careful study of the merits of the proposal.

(iv) In the opinion of the Bank the rate of interest and other charges are reasonable and suc h
rate, charges and the schedule for repayment of principal are appropriate to the project.
(v) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects that the
borrower, and, if the borrower is not a member, that the guarantor, will be in position to meet its
obligations under the loan; and the Bank shall act prudently in the interests both of the particular
member in whose territories the project is located and of the members as a whole.
(vi) In guaranteeing a loan made by other investors, the Bank receives suitable compensation
for its risk.
(vii) Loans made or guaranteed by the Bank shall, except in special circumstances, be for the
purpose of specific projects of reconstruction or development.
SECTION 5. USE OF LOANS GUARANTEED, PARTICIPATED IN OR MADE BY THE
BANK
(a) The Bank shall impose no conditions that the proceeds of a loan shall be spent in the
territories of any particular member or members.
(b) The Bank shall make arrangements to ensure that the proceeds of any loan are used only
for the purposes for which the loan was granted, with due attention to considerations of economy
and efficiency and without regard to political or other non-economic influences or
considerations.
(c) In the case of loans made by the Bank, it shall open an account in the name of the
borrower and the amount of the loan shall be credited to this account in the currency or
currencies in which the loan is made. The borrower shall be permitted by the Bank to draw on
this account only to meet expenses in connection with the project as they are actually incurred.
ARTICLE IV. OPERATIONS
SECTION 1. METHODS OF MAKING OR FACILITATING LOANS
(a) The Bank may make or facilitate loans which satisfy the general conditions of Article III
in any of the following ways:
(i) By making or participating in direct loans out of its own funds corresponding to its
unimpaired paid- up capital and surplus and, subject to Section 6 of this Article, to its reserves.
(ii) By making or participating in direct loans out of funds raised in the market of a member,
or otherwise borrowed by the Bank.
(iii) By guaranteeing in whole or in part loans made by private investors through the usual
investment channels.

(b) The Bank may borrow funds under (a) (ii) above or guarantee loans under (a) (iii) above
only with the approval of the member in whose markets the funds are raised and the member in
whose currency the loan is denominated, and only if those members agree that the proceeds may
be exchanged for the currency of any other member without restriction.
SECTION 2. AVAILABILITY AND TRANSFERABILITY OF CURRENCIES
(a) Currencies paid into the Bank under Article II, Section 7 (i), shall be loaned only with the
approval in each case of the member whose currency is involved; provided, however, that if
necessary, after the Bank's subscribed capital has been entirely called, such currencies shall,
without restriction by the members whose currencies are offered, be used or exchanged for the
currencies required to meet contractual payments of interest, other charges or amortization on the
Bank's own borrowings, or to meet the Bank's liabilities with respect to such contractual
payments on loans guaranteed by the Bank.
(b) Currencies received by the Bank from borrowers or guarantors in payment on account of
principal of direct loans made with currencies referred to in (a) above shall be exchanged for the
currencies of other members or reloaned only with the approval in each case of the members
whose currencies are involved; provided, however, that if necessary, after the Bank's subscribed
capital has been entirely called, such currencies shall, without restriction by the members whose
currencies are offered, be used or exchanged for the currencies required to meet contractual
payments of interest, other charges or amortization on the Bank's own borrowings, or to meet the
Bank's liabilities with respect to such contractual payments on loans guaranteed by the Bank.
(c) Currencies received by the Bank from borrowers or guarantors in payment on account of
principal of direct loans made by the Bank under Section 1 (a) (ii) of this Article, shall be held
and used, without restriction by the members, to make amortization payments, or to anticipate
payment of or repurchase part or all of the Bank's own obligations.
(d) All other currencies available to the Bank, including those raised in the market or
otherwise borrowed under Section 1 (a) (ii) of this Article, those obtained by the sale of gold,
those received as payments of interest and other charges for direct loans made under Sections 1
(a) (i) and (ii), and those received as payments of commissions and other charges under Section 1
(a) (iii), shall be used or exchanged for other currencies or gold required in the operations of the
Bank without restriction by the members whose currencies are offered.
(e) Currencies raised in the markets of members by borrowers on loans guaranteed by the
Bank under Section 1 (a) (iii) of this Article, shall also be used or exchanged for other currencies
without restriction by such members.
SECTION 3. PROVISION OF CURRENCIES FOR DIRECT LOANS
The following provisions shall apply to direct loans under Sections 1 (a) (i) and (ii) of this
Article:

(a) The Bank shall furnish the borrower with such currencies of members, other than the
member in whose territories the project is located, as are needed by the borrower for
expenditures to be made in the territories of such other members to carry out the purposes of the
loan.
(b) The Bank may, in exceptional circumstances when local currency required for the
purposes of the loan cannot be raised by the borrower on reasonable terms, provide the borrower
as part of the loan with an appropriate amount of that currency.
(c) The Bank, if the project gives rise indirectly to an increased need for foreign exchange by
the member in whose territories the project is located, may in exceptional circumstances provide
the borrower as part of the loan with an appropriate amount of gold or foreign exchange not in
excess of the borrower's local expenditure in connection with the purposes of the loan.
(d) The Bank may, in exceptional circumstances, at the request of a member in whose
territories a portion of the loan is spent, repurchase with gold or foreign exchange a part of that
member's currency thus spent but in no case shall the part so repurchased exceed the amount by
which the expenditure of the loan in those territories gives rise to an increased need for foreign
exchange.
SECTION 4. PAYMENT PROVISIONS FOR DIRECT LOANS
Loan cont racts under Section 1 (a) (i) or (ii) of this Article shall be made in accordance with
the following payment provisions:
(a) The terms and conditions of interest and amortization payments, maturity and dates of
payment of each loan shall be determined by the Bank. The Bank shall also determine the rate
and any other terms and conditions of commission to be charged in connection with such loan.
In the case of loans made under Section 1 (a) (ii) of this Article during the first ten years of
the Bank's operations, this rate of commission shall be not less than one percent per annum and
not greater than one and one-half percent per annum, and shall be charged on the outstanding
portion of any such loan. At the end of this period of ten years, the rate of commission may be
reduced by the Bank with respect both to the outstanding portions of loans already made and to
future loans, if the reserves accumulated by the Bank under Section 6 of this Article and out of
other earnings are considered by it sufficient to justify a reduction. In the case of future loans the
Bank shall also have discretion to increase the rate of commission beyond the above limit, if
experience indicates that an increase is advisable.
(b) All loan contracts shall stipulate the currency or currencies in which payments under the
contract shall be made to the Bank. At the option of the borrower, however, such payments may
be made, in gold, or subject to the agreement of the Bank, in the currency of a member other than
that prescribed in the cont ract.

(i) In the case of loans made under Section 1 (a) (i) of this Article, the loan contracts shall
provide that payments to the Bank of interest, other charges and amortization shall be made in
the currency loaned, unless the member whose currency is loaned agrees that such payments
shall be made in some other specified currency or currencies. These payments, subject to the
provisions of Article II, Section 9 (c), shall be equivalent to the value of such contractual
payments at the time the loans were made, in terms of a currency specified for the purpose by the
Bank by a three- fourths majority of the total voting power.
(ii) In the case of loans made under Section 1 (a) (ii) of this Article, the total amount
outstanding and payable to the Bank in any one currency shall at no time exceed the total amount
of the outstanding borrowings made by the Bank under Section 1 (a) (ii) and payable in the same
currency.
(c) If a member suffers from an acute exchange stringency, so that the service of any loan
contracted by that member or guaranteed by it or by one of its agencies cannot be provided in the
stipulated manner, the member concerned may apply to the Bank for a relaxation of the
conditions of payment. If the Bank is satisfied that some relaxation is in the interests of the
particular member and of the operations of the Bank and of its members as a whole, it may take
action under either, or both, of the following paragraphs with respect to the whole, or part, of the
annual service:
(i) The Bank may, in its discretion, make arrangements with the member concerned to accept
service payments on the loan in the member's currency for periods not to exceed three years upon
appropriate terms regarding the use of such currency and the maintenance of its foreign exchange
value; and for the repurchase of such currency on appropriate terms.
(ii) The Bank may modify the terms of amortization or extend the life of the loan, or both.
SECTION 5. GUARANTEES
(a) In guaranteeing a loan placed through the usual investment channels, the Bank shall
charge a guarantee commission payable periodically on the amount of the loan outstanding at a
rate determined by the Bank. During the first ten years of the Bank's operations, this rate shall be
not less than one percent per annum and not greater than one and one- half percent per annum. At
the end of this period of ten years, the rate of commission may be reduced by the Bank with
respect both to the outstanding portions of loans already guaranteed and to future loans if the
reserves accumulated by the Bank under Section 6 of this Article and out of other earnings are
considered by it sufficient to justify a reduction. In the case of future loans the Bank shall also
have discretion to increase the rate of commission beyond the above limit, if experience indicates
that an increase is advisable.
(b) Guarantee commissions shall be paid directly to the Bank by the borrower.

(c) Guarantees by the Bank shall provide that the Bank may terminate its liability with
respect to interest if, upon default by the borrower and by the guarantor, if any, the Bank offers
to purchase, at par and interest accrued to a date designated in the offer, the bonds or other
obligations guaranteed.
(d) The Bank shall have power to determine any other terms and conditions of the guarantee.
SECTION 6. SPECIAL RESERVE
The amount of commissions received by the Bank under Sections 4 and 5 of this Article shall
be set aside as a special reserve, which shall be kept available for meeting liabilities of the Bank
in accordance with Section 7 of this Article. The special reserve shall he held in such liquid
form, permitted under this Agreement, as the Executive Directors may decide.
SECTION 7. METHODS OF MEETING LIABILITIES OF THE BANK IN CASE OF
DEFAULTS
In cases of defa ult on loans made, participated in, or guaranteed by the Bank:
(a) The Bank shall make such arrangements as may be feasible to adjust the obligations under
the loans, including arrangements under or analogous to those provided in Section 4 (c) of this
Article.
(b) The payments in discharge of the Bank's liabilities on borrowings or guarantees under
Sections 1 (a) (ii) and (iii) of this Article shall be charged:
(i) first, against the special reserve provided in Section 6 of this Article.
(ii) then, to the extent necessary and at the discretion of the Bank, against the other reserves,
surplus and capital available to the Bank.
(c) Whenever necessary to meet contractual payments of interest, other charges or
amortization on the Bank's own borrowings, or to meet the Bank's liabilities with respect to
similar payments on loans guaranteed by it, the Bank may call an appropriate amount of the
unpaid subscriptions of members in accordance with Article II, Sections 5 and 7. Moreover, if it
believes that a default may be of long duration, the Bank may call an additional amount of such
unpaid subscriptions not to exceed in any one year one percent of the total subscriptions of the
members for the following purposes:
(i) To redeem prior to maturity, or otherwise discharge its liability on, all or part of the
outstanding principal of any loan guaranteed by it in respect of which the debtor is in default.
(ii) To repurchase, or otherwise discharge its liability on, all or part of its own outstanding
borrowings.

SECTION 8. MISCELLANEOUS OPERATIONS
In addition to the operations specified elsewhere in this Agreement, the Bank shall have the
power:
(i) To buy and sell securities it has issued and to buy and sell securities which it has
guaranteed or in which it has invested, provided that the Bank shall obtain the approval of the
member in whose territories the securities are to be bought or sold.
(ii) To guarantee securities in which it has invested for the purpose of facilitating their sale.
(iii) To borrow the currency of any member with the approval of &t member.
(iv) To buy and sell such other securities as the Directors by a three-fourths majority of the
total voting power may deem proper for the investment of all or part of the special reserve under
Section 6 of this Article.
In exercising the powers conferred by this Section, the Bank may deal with any person,
partnership, association, corporation or other legal entity in the territories of any member.
SECTION 9. WARNING TO BE PLACED ON SECURITIES
Every security guaranteed or issued by the Bank shall bear on its face a conspicuous
statement to the effect that it is not an obligation of any government unless expressly stated on
the security.
SECTION 10. POLITICAL ACTIVITY PROHIBITED
The Bank and its officers shall not interfere in the political affairs of any member; nor shall
they be influenced in their decisions by the political character of the member or members
concerned. Only economic considerations shall be relevant to their decisions, and these
considerations shall be weighed impartially in order to achieve the purposes stated in Article I.
ARTICLE V. ORGANIZATION AND MANAGEMENT
SECTION 1. STRUCTURE OF THE BANK
The Bank shall have a Board of Governors, Executive Directors, a President and such other
officers and staff to perform such duties as the Bank may determine.
SECTION 2. BOARD OF GOVERNORS
(a) All the powers of the Bank shall be vested in the Board of Governors consisting of one
governor and one alternate appointed by each member in such manner as it may determine. Each
governor and each alternate shall serve for five years, subject to the pleasure of the member

appointing him, and may be reappointed. No alternate may vote except in the absence of his
principal. The Board shall select one of the governors as Chairman.
(b) The Board of Governors may delegate to the Executive Directors authority to exercise any
powers of the Board, except the power to:
(i) Admit new members and determine the conditions of their admission;
(ii) Increase or decrease the capital stock;
(iii) Suspend a member;
(iv) Decide appeals from interpretations of this Agreement given by the Executive Directors,
(v) Make arrangements to cooperate with other international organizations (other than
informal arrangements of a temporary and administrative character);
(vi) Decide to suspend permanently the operations of the Bank and to distribute its assets;
(vii) Determine the distribution of the net income of the Bank.
(c) The Board of Governors shall hold an annual meeting and such other meetings as may be
provided for by the Board or called by the Executive Directors. Meetings of the Board shall be
called by the Directors whenever requested by five members or by members having one-quarter
of the total voting power.
(d) A quorum for any meeting of the Board of Governors shall be a majority of the
Governors, exercising not less than two-thirds of the total voting power.
(e) The Board of Governors may by regulation establish a procedure whereby the Executive
Directors, when they deem such action to be in the best interests of the Bank, may obtain a vote
of the Governors on a specific question without calling a meeting of the Board.
(f) The Board of Governors, and the Executive Directors to the extent authorized, may adopt
such rules and regulations as may be necessary or appropriate to conduct the business of the
Bank.
(g) Governors and alternates shall serve as such without compensation from the Bank, but the
Bank shall pay them reasonable expenses incurred in attending meetings.
(h) The Board of Governors shall determine the remuneration to be paid to the Executive
Directors and the salary and terms of the contract of service of the President.

SECTION 3. VOTING
(a) Each member shall have two hundred fifty votes plus one additional vote for each share of
stock held.
(b) Except as otherwise specifically provided, all matters before the Bank shall be decided by
a majority of the votes cast.
SECTION 4. EXECUTIVE DIRECTORS
(a) The Executive Directors shall be responsible for the conduct of the general operations of
the Bank, and for this purpose, shall exercise all the powers delegated to them by the Board of
Governors.
(b) There shall be twelve Executive Directors, who need not be governors, and of whom:
(i) five shall be appointed, one by each of the five members having the largest number of
shares;
(ii) seven shall be elected according to Schedule B by all the Governors other than those
appointed by the five members referred to in (i) above.
For the purpose of this paragraph, "members" means governments of countries whose names
are set forth in Schedule A, whether they are original members or become members in
accordance with Article II, Section I (b). When governments of other countries become
members, the Board of Governors may, by a four-fifths majority of the total voting power,
increase the total number of directors by increasing the number of directors to be elected.
Executive directors shall be appointed or elected every two years.
(c) Each executive director shall appoint an alternate with full power to act for him when he
is not present. When the executive directors appointing them are present, alternates may
participate in meetings but shall not vote.
(d) Directors shall continue in office until their successors are appointed or elected. If the
office of an elected director becomes vacant more than ninety days before the end of his term,
another director shall be elected for the remainder of the term by the governors who elected the
former director. A majority of the votes cast shall be required for election. While the office
remains vacant, the alternate of the former director shall exercise his powers, except that of
appointing an alternate.
(e) The Executive Directors shall function in continuous session at the principal office of the
Bank and shall meet as often as the business of the Bank may require.

(f) A quorum for any meeting of the Executive Directors shall be a majority of the Directors,
exercising not less than one-half of the total voting power.
(g) Each appointed director shall be entitled to cast the number of votes allotted under
Section 3 of this Article to the member appointing him. Each elected director shall be entitled to
cast the number of votes which counted toward his election. All the votes which a director is
entitled to cast shall be cast as a unit.
(h) The Board of Governors shall adopt regulations under which a member not entitled to
appoint a director under (b) above may send a representative to attend any meeting of the,
Executive Directors when a request made by, or a matter particularly affecting, that member is
under consideration.
(i) The Executive Directors may appoint such committees as they deem advisable.
Membership of such committees need not be limited to governors or directors or their alternates.
SECTION 5. PRESIDENT AND STAFF
(a) The Executive Directors shall select a President who shall not be a governor or an
executive director or an alternate for either. The President shall be Chairman of the Executive
Directors, but shall have no vote except a deciding vote in case of an equal division. He may
participate in meetings of the Board of Governors, but shall not vote at such meetings. The
President shall cease to hold office when the Executive Directors so decide.
(b) The President shall be chief of the operating staff of the Bank and shall conduct, under the
direction of the Executive Directors, the ordinary business of the Bank. Subject to the general
control of the Executive Directors, he shall be responsible for the organization, appointment and
dismissal of the officers and staff.
(c) The President, officers and staff of the Bank, in the discharge of their offices, owe their
duty entirely to the Bank and to no other authority. Each member of the Bank shall respect the
international character of this duty and shall refrain from all attempts to influence any of them in
the discharge of their duties.
(d) In appointing the officers and staff the President shall, subject to the paramount
importance of securing the highest standards of efficiency and of technical competence, pay due
regard to the importance of recruiting personnel on as wide a geographical basis as possible.
SECTION 6. ADVISORY COUNCIL
(a) There shall be an Advisory Council of not less than seven persons selected by the Board
of Governors including representatives of banking, commercial, industrial, labor, and agricultural
interests, and with as wide a national representation as possible. In those fields where specialized
international organizations exist, the members of the Council representative of those fields shall

be selected in agreement with such organizations. The Council shall advise the Bank on matters
of general policy. The Council shall meet annually and on such other occasions as the Bank may
request.
(b) Councilors shall serve for two years and may be reappointed. They shall be paid their
reasonable expenses incurred on behalf of the Bank.
SECTION 7. LOAN COMMITTEES
The committees required to report on loans under Article III, Section 4, shall be appointed by
the Bank. Each such committee shall include an expert selected by the governor representing the
member in whose territories the project is located and one or more members of the technical staff
of the Bank.
SECTION 8. RELATIONSHIP TO OTHER INTERNATIONAL ORGANIZATIONS
(a) The Bank, within the terms of this Agreement, shall cooperate with any general
international organization and with public international organizations having specialized
responsibilities in related fields. Any arrangements for such cooperation which would involve a
modification of any provision of this Agreement may be effected only after amendment to this
Agreement under Article VIII.
(b) In making decisions on applications for loans or guarantees relating to matters directly
within the competence of any international organization of the types specified in the preceding
paragraph and participated in primarily by members of the Bank, the Bank shall give
consideration to the views and recommendations of such organization.
SECTION 9. LOCATION OF OFFICES
(a) The principal office of the Bank shall be located in the territory of the member holding the
greatest number of shares.
(b) The Bank may establish agencies or branch offices in the territories of any member of the
Bank.
SECTION 10. REGIONAL OFFICES AND COUNCILS
(a) The Bank may establish regional offices and determine the location of, and the areas to be
covered by, each regional office.
(b) Each regional office shall be advised by a regional council representative of the entire
area and selected in such manner as the Bank may decide.

SECTION 11. DEPOSITORIES
(a) Each member shall designate its central bank as a depository for all the Bank's holdings of
its currency or, if it has no central bank, it shall designate such other institution as may be
acceptable to the Bank.
(b) The Bank may hold other assets, including gold, in depositories designated by the five
members having the largest number of shares and in such other designated depositories as the
Bank may select. Initially, at least one- half of the gold holdings of the Bank shall be held in the
depository designated by the member in whose territory the Bank has its principal office, and at
least forty percent shall be held in the depositories designated by the remaining four members
referred to above, each of such depositories to hold, initially, not less than the amount of gold
paid on the shares of the member designating it. However, all transfers of gold by the Bank shall
be made with due regard to the costs of transport and anticipated requirements of the Bank. In an
emergency the Executive Directors may transfer all or any part of the Bank's gold holdings to
any place where they can be adequately protected.
SECTION 12. FORM OF HOLDINGS OF CURRENCY
The Bank shall accept from any member, in place of any part of the member's currency, paid
in to the Bank under Article II, Section 7 (i), or to meet amortization payments on loans made
with such currency and not needed by the Bank in its operations, notes or similar obligations
issued by the Government of the member or the depository designated by such member, which
shall be non- negotiable, non- interest-bearing and payable at their par value on demand by credit
to the account of the Bank in the designated depository.
SECTION 13. PUBLICATION OF REPORTS AND PROVISION OF INFORMATION
(a) The Bank shall publish an annual report containing an audited statement of its accounts
and shall circulate to members at intervals of three months or less a summary statement of its
financial position and a profit and loss statement showing the results of its operations.
(b) The Bank may publish such other reports as it deems desirable to carry out its purposes.
(c) Copies of all reports, statements and publications made under this section shall be
distributed to members.
SECTION 14. ALLOCATION OF NET INCOME
(a) The Board of Governors shall determine annually what part of the Bank's net income,
after making provision for reserves, shall be allocated to surplus and what part, if tiny, shall be
distributed.
(b) If any part is distributed, up to two percent non-cumulative shall be paid, as a first charge
against the distribution for any year, to each member on the basis of the average amount of the

loans outstanding during the year made under Article IV, Section 1 (a) (i), out of currency
corresponding to its subscription. If two percent is paid as a first charge, any balance remaining
to be distributed shall be paid to all members in proportion to their shares. Payments to each
member shall be made in its own currency, or if that currency is not available in other currency
acceptable to the member. If such payments are made in currencies other than the member's own
currency, the transfer of the currency and its use by the receiving member after payment shall be
without restriction by the members.
ARTICLE VI. WITHDRAWAL AND SUSPENSION OF MEMBERSHIP:
SUSPENSION OF OPERATIONS
SECTION 1. RIGHT OF MEMBERS TO WITHDRAW
Any member may withdraw from the Bank at any time by transmitting a notice in writing to
the Bank at its principal office. Withdrawal shall become effective on the date such notice is
received.
SECTION 2. SUSPENSION OF MEMBERSHIP
If a member fails to fulfill any of its obligations to the Bank, the Bank may suspend its
membership by decision of a majority of the Governors, exercising a majority of the total voting
power. The member so suspended shall automatically cease to be a member one year from the
date of its suspension unless a decision is taken by the same majority to restore the member to
good standing.
While under suspension, a member shall not be entitled to exercise any rights under this
Agreement, except the right of withdrawal, but shall remain subject to all obligations.
SECTION 3. CESSATION OF MEMBERSHIP IN INTERNATIONAL MONETARY
FUND
Any member which ceases to be a member of the International Monetary Fund shall
automatically cease after three months to be a member of the Bank unless the Bank by threefourths of the total voting power has agreed to allow it to remain a member.
SECTION 4. SETTLEMENT OF ACCOUNTS WITH GOVERNMENTS CEASING TO BE
MEMBERS
(a) When a government ceases to be a member, it shall remain liable for its direct obligations
to the Bank and for its contingent liabilities to the Bank so long as any part of the loans or
guarantees contracted before it ceased to be a member are outstanding; but it shall cease to incur
liabilities with respect to loans and guarantees entered into thereafter by the Bank and to share
either in the income or the expenses of the Bank.

(b) At the time a government ceases to be a member, the Bank shall arrange for the
repurchase of its shares as a part of the settlement of accounts with such government in
accordance with the provisions of (c) and (d) below. For this purpose the repurchase price of the
shares shall be the value shown by the books of the Bank on the day the government ceases to be
a member.
(c) The payment for shares repurchased by the Bank under this section shall be governed by
the following conditio ns:
(i) Any amount due to the government for its shares shall be withheld so long as the
government, its central bank or any of its agencies remains liable, as borrower or guarantor, to
the Bank and such amount may, at the option of the Bank, be applied on any such liability as it
matures. No amount shall be withheld on account of the liability of the government resulting
from its subscription for share under Article II, Section 5 (ii). In any event, no amount due to a
member for its shares shall be paid until six months after the date upon which the government
ceases to be a member.
(ii) Payments for shares may be made from time to time, upon their surrender by the
government, to the extent by which the amount due as the repurchase price in (b) above exceeds
the aggregate of liabilities on loans and guarantees in (c) (i) above until the former member has
received the full repurchase price.
(iii) Payments shall be made in the currency of the country receiving payment or at the option
of the Bank in gold.
(iv) If losses are sustained by the Bank on any guarantees, participations in loans, or loans
which were outstanding on the date when the government ceased to be a member, and the
amount of such losses exceeds the amount of the reserve provided against losses on the date
when the government ceased to be a member, such government shall be obligated to repay upon
demand the amount by which the repurchase price of its shares would have been reduced, if the
losses had been taken into account when the repurchase price was determined. In addition, the
former member government shall remain liable on any call for unpaid subscriptions under
Article II, Section 5 (ii), to the extent that it would have been required to respond if the
impairment of capital had occurred and the call had been made at the time the repurchase price
of its shares was determined.
(d) If the Bank suspends permanently its operations under Section 5 (b) of this Article, within
six months of the date upon which any government ceases to be a member, all rights of such
government shall be determined by the provisions of Section 5 of this Article.

SECTION 5. SUSPENSION OF OPERATIONS AND SETTLEMENT OF OBLIGATIONS
(a) In an emergency the Executive Directors may suspend temporarily operations in respect
of new loans and guarantees pending an opportunity for further consideration and action by the
Board of Governors.
(b) The Bank may suspend permanently its operations in respect of new loans and guarantees
by vote of a majority of the Governors, exercising a majority of the total voting power. After
such suspension of operations the Bank shall forthwith cease all activities, except those incident
to the orderly realization, conservation, and preservation of its assets and settlement of its
obligations.
(c) The liability of all members for uncalled subscriptions to the capital stock of the Bank and
in respect of the depreciation of their own currencies shall continue until all claims of creditors,
including all contingent claims, shall have been discharged.
(d) All creditors holding direct claims shall be paid out of the assets of the Bank, and then out
of payments to the Bank on calls on unpaid subscriptions. Before making any payments to
creditors holding direct claims, the Executive Directors shall make such arrangements as are
necessary, in their judgment, to insure a distribution to holders of contingent claims ratably with
creditors holding direct claims.
(e) No distribution shall be made to members on account of their subscriptions to the capital
stock of the Bank until
(i) all liabilities to creditors have been discharged or provided for, and
(ii) a majority of the Governors, exercising a majority of the total voting power, have decided
to make a distribution.
(f) After a decision to make a distribution has been taken under (e) above, the Executive
Directors may by a two-thirds majority vote make successive distributions of the assets of the
Bank to members until all of the assets have been distributed. This distribution shall be subject to
the prior settlement of all outstanding claims of the Bank against each member.
(g) Before any distribution of assets is made, the Executive Directors shall fix the
proportionate share of each member according to the ratio of its shareholding to the total
outstanding shares of the Bank.
(h) The Executive Directors shall value the assets to be distributed as at the date of
distribution and then proceed to distribute in the following manner:
(i) There shall be paid to each member in its own obligations or those of its official agencies
or legal entities within its territories, insofar as they are available for distribution, an amount
equivalent in value to its proportionate share of the total amount to be distributed.

(ii) Any balance due to a member after payment has been made under (i) above shall be paid,
in its own currency, insofar as it is held by the Bank, up to an amount equivalent in value to such
balance.
(iii) Any balance due to a member after payment has been made under (i) and (ii) above shall
be paid in gold or currency acceptable to the member, insofar as they are held by the Bank, up to
an amount equivalent in value to such balance.
(iv) Any remaining assets held by the Bank after payments have been made to members
under (i), (ii), and (iii) above shall be distributed pro rata among the members.
(i) Any member receiving assets distributed by the Bank in accordance with (h) above, shall
enjoy the same rights with respect to such assets as the Bank enjoyed prior to their distribution.
ARTICLE VII. STATUS, IMMUNITIES AND PRIVILEGES
SECTION 1. PURPOSES OF ARTICLE
To enable the Bank to fulfill the functions with which it is entrusted, the status, immunities
and privileges set forth in this Article shall be accorded to the Bank in the territories of each
member.
SECTION 2. STATUS OF THE BANK
The Bank shall possess full juridical personality, and, in particular, the capacity:
(i) to contract;
(ii) to acquire and dispose of immovable and movable property;
(iii) to institute legal proceedings.
SECTION 3. POSITION OF THE BANK WITH REGARD TO JUDICIAL PROCESS
Actions may be brought against the Bank only in a court of competent jurisdiction in the
territories of a member in which the Bank has an office, has appointed an agent for the purpose
of accepting service or notice of process, or has issued or guaranteed securities. No actions shall,
however, be brought by members or persons acting for or deriving claims from members. The
property and assets of the Bank shall, wheresoever located and by whomsoever held, be immune
from all forms of seizure, attachment or execution before the delivery of final judgment against
the Bank.

SECTION 4. IMMUNITY OF ASSETS FROM SEIZURE
Property and assets of the Bank, wherever located and by whomsoever held, shall be immune
from search, requisition, confiscation, expropriation or any other form of seizure by executive or
legislative action.
SECTION 5. IMMUNITY OF ARCHIVES
The archives of the Bank shall be inviolable.
SECTION 6. FREEDOM OF ASSETS FROM RESTRICTIONS
To the extent necessary to carry out the operations provided for in this Agreement and subject
to the provisions of this Agreement, all property and assets of the Bank shall be free from
restrictions, regulations, controls and moratoria of any nature.
SECTION 7. PRIVILEGE FOR COMMUNICATIONS
The official communications of the Bank shall be accorded by each member the same
treatment that it accords to the official communications of other members.
SECTION 8. IMMUNITIES AND PRIVILEGES OF OFFICERS AND EMPLOYEES
All governors, executive directors, alternates, officers and employees of the Bank
(i) shall be immune from legal process with respect to acts performed by them in their official
capacity except when the Bank waives this immunity;
(ii) not being local nationals, shall be accorded the same immunities from immigration
restrictions, alien registration requirements and national service obligations and the same
facilities as regards exchange restrictions as are accorded by members to the representatives,
officials, and employees of comparable rank of other members;
(iii) shall be granted the same treatment in respect of traveling facilities as is accorded by
members to representatives, officials and employees of comparable rank of other members.
SECTION 9. IMMUNITIES FROM TAXATION
(a) The Bank, its assets, property, income and its operations and transactions authorized by
this Agreement, shall be immune from all taxation and from all customs duties. The Bank shall
also be immune from liability for the collection or payment of any tax or duty.
(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Bank to
executive directors, alternates, officials or employees of the Bank who are not local citizens,
local subjects, or other local nationals.

(c) No taxation of any kind shall be levied on any obligation or security issued by the Bank
(including any dividend or interest thereon) by whomsoever held(i) which discriminates against such obligation or security solely because it is issued by the
Bank; or
(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is
issued, made payable or paid, or the location of any office or place of business maintained by the
Bank.
(d) No taxation of any kind shall be levied on any obligation or security guaranteed by the
Bank (including any dividend or interest thereon) by whomsoever held(i) which discriminates against such obligation or security solely because it is guaranteed by
the Bank; or
(ii) if the sole jurisdictional basis for such taxation is the location of any office or place of
business maintained by the Bank.
SECTION 10. APPLICATION OF ARTICLE
Each member shall take such action as is necessary in its own territories for the purpose of
making effective in terms of its own law the principles set forth in this Article and shall inform
the Bank of the detailed action which it has taken.
ARTICLE VIII. AMENDMENTS
(a) Any proposal to introduce modifications in this Agreement, whether emanating from a
member, a governor or the Executive Directors, shall be communicated to the Chairman of the
Board of Governors who shall bring the proposal before the Board. If the proposed amendment is
approved by the Board the Bank shall, by circular letter or telegram, ask all members whether
they accept the proposed amendment. When three-fifths of the members, having four-fifths of
the total voting power, have accepted the proposed amendment, the Bank shall certify the fact by
a formal communication addressed to all members.
(b) Notwithstanding (a) above, acceptance by all members is required in the case of any
amendment modifying
(i) the right to withdraw from the Bank provided in Article VI, Section 1:
(ii) the right secured by Article II, Section 3 (c);
(iii) the limitation on liability provided in Article II, Section 6.

(c) Amendments shall enter into force for all members three months after the date of the
formal communication unless a shorter period is specified in the circular letter or telegram.
ARTICLE IX. INTERPRETATION
(a) Any question of interpretation of the provisions of this Agreement arising between any
member and the Bank or between any members of the Bank shall be submitted to the Executive
Directors for their decision. If the question particularly affects any member not entitled to
appoint an executive director, it shall be entitled to representation in accordance with Article V,
Section 4 (h).
(b) In any case where the Executive Directors have given a decision under (a) above, any
member may require that the question be referred to the Board of Governors, whose decision
shall be final. Pending the result of the reference to the Board, the Bank may, so for as it deems
necessary, act on the basis of the decision of the Executive Directors.
(c) Whenever a disagreement arises between the Bank and a country which has ceased to be a
member, or between the Bank and any member during the permanent suspension of the Bank,
such disagreement shall be submitted to arbitration by a tribunal of three arbitrators, one
appointed by the Bank, another by the country involved and an umpire who, unless the parties
otherwise agree, shall be appointed by the President of the Permanent Court of International
Justice or such other authority as may have been prescribed by regulation adopted by the Bank.
The umpire shall have full power to settle all questions of procedure in any case where the
parties are in disagreement with respect thereto.
ARTICLE X. APPROVAL DEEMED GIVEN
Whenever the approval of any member is required before any act may be done by the Bank,
except in Article VIII, approval shall be deemed to have been given unless the member presents
an objection within such reasonable period as the Bank may fix in notifying the member of the
proposed act.
ARTICLE XI. FINAL PROVISIONS
SECTION 1. ENTRY INTO FORCE
This Agreement shall enter into force when it has been signed on behalf of governments
whose minimum subscriptions comprise not less than sixty- five percent of the total subscriptions
set forth in Schedule A and when the instruments referred to in Section 2 (a) of this Article have
been deposited on their behalf, but in no event shall this Agreement enter into force before May
1, 1945.

SECTION 2. SIGNATURE
(a) Each government on whose behalf this Agreement is signed shall deposit with the
Government of the United States of America an instrument setting forth that it has accepted this
Agreement in accordance with its law and has taken all steps necessary to enable it to carry out
all of its obligations under this Agreement.
(b) Each government shall become a member of the Bank as from the date of the deposit on
its behalf of the instrument referred to in (a) above, except that no government shall become a
member before this Agreement enters into force under Section 1 of this Article.
(c) The Government of the United States of America shall inform the governments of all
countries whose names are set forth in Schedule A, and all governments whose membership is
approved in accordance with Article II, Section 1 (b), of all signatures of this Agreement and of
the deposit of all instruments referred to in (a) above.
(d) At the time this Agreement is signed on its behalf, each government shall transmit to the
Government of the United States of America one one- hundredth of one percent of the price of
each share in gold or United States dollars for the purpose of meeting administrative expenses of
the Bank. This payment shall be credited on account of the payment to be made in accordance
with Article 11, Section 8 (a). The Government of the United States of America shall hold such
funds in a special deposit account and shall transmit them to the Board of Governors of the Bank
when the initial meeting has been called under Section 3 of this Article. If this Agreement has
not come into force by December 31, 1945, the Government of the United States of America
shall return such funds to the governments that transmitted them.
(e) This Agreement shall remain open for signature at Washington on behalf of the
governments of the countries whose names are set forth in Schedule A until December 31, 1945.
(f) After December 31, 1945, this Agreement shall be open for signature on behalf of the
government of any country whose membership has been approved in accordance with Article II,
Section 1 (b).
(g) By their signature of this Agreement, all governments accept it both on their own behalf
and in respect of all their colonies, overseas territories, all territories under their protection,
suzerainty, or authority and all territories in respect of which they exercise a mandate.
(h) In the case of governments whose metropolitan territories have been under enemy
occupation, the deposit of the instrument referred to in (a) above may be delayed until one
hundred and eighty days after the date on which these territories have been liberated. If,
however, it is not deposited by any such government before the expiration of this period, the
signature affixed on behalf of that government shall become void and the portion of its
subscription paid under (d) above shall be returned to it.

(i) Paragraphs (d) and (h) shall come into force with regard to each signatory government as
from the date of its signature.
SECTION 3. INAUGURATION OF THE BANK
(a) As soon as this Agreement enters into force under Section 1 of this Article, each member
shall appoint a governor and the member to whom the largest number of shares is allocated in
Schedule A shall call the first meeting of the Board of Governors.
(b) At the first meeting of the Board of Governors, arrangements shall be made for the
selection of provisional executive directors. The governments of the five countries, to which the
largest number of shares are allocated in Schedule A, shall appoint provisional executive
directors. If one or more of such governments have not become members, the executive
directorships which they would be entitled to fill shall remain vacant until they become
members, or until January 1, 1946, whichever is the earlier. Seven provisional executive
directors shall be elected in accordance with the provisions of Schedule B and shall remain in
office until the date of the first regular election of executive directors which shall be held as soon
as practicable after January 1, 1946.
(c) The Board of Governors may delegate to the provisional executive directors any powers
except those which may not be delegated to the Executive Directors.
(d) The Bank shall notify members when it is ready to commence operations.
Done at Washington, in a single copy which shall remain deposited in the archives of the
Government of the United States of America, which shall transmit certified copies to all
Governments whose names are set forth in Schedule A and to all governments whose
membership is approved in accordance with Article II, Section 1 (b).

SCHEDULE A
SUBSCRIPTIONS
(millions of
dollars)
Australia ...........................200
Belgium ............................225
Bolivia ..................................7
Brazil ................................105
Canada..............................325
Chile ...................................35
China ................................600
Colombia ............................35
Costa Rica ............................2
Cuba ...................................35
Czechoslovakia ................125
Denmark...............................*
Dominican Republic ............2
Ecuador .............................3.2
Egypt ..................................40
El Salvador ...........................1
Ethiopia ................................3
France...............................450
Greece ................................25
Guatemala ............................2
Haiti......................................2
Honduras ..............................1
Iceland ..................................1
India .................................400

(millions of
dollars)
Iran........................................24
Iraq ..........................................6
Liberia .....................................5
Luxembourg..........................10
Mexico ..................................65
Netherlands .........................275
New Zealand .........................50
Nicaragua ................................8
Norway..................................50
Panama ....................................2
Paraguay..................................8
Peru ....................................17.5
Philippine Commonwealth....15
Poland..................................125
Union of South Africa ........100
Union of Soviet Socialist
Republics.................... 1200
United Kingdom................1300
United States .....................3175
Uruguay..............................10.5
Venezuela...........................10.5
Yugoslavia ............................40
———
Total...............9100

*The quota of Denmark shall be determined by the Bank after Denmark accepts membership
in accordance with these Articles of Agreement.
SCHEDULE B
ELECTION OF EXECUTIVE DIRECTORS
1. The election of the elective executive directors shall be by ballot of the Governors eligible
to vote under Article V, Section 4 (b).
2. In balloting for the elective executive directors, each governor eligible to vote shall cast for
one person all of the votes to which the member appointing him is entitled under Section 3 of
Article V. The seven persons receiving the greatest number of votes shall be executive directors,
except that no person who receives less than fourteen percent of the total of the votes which can
be cast (eligible votes) shall be considered elected.

3. When seven persons are not elected on the first ballot, a second ballot shall be held in
which the person who received the lowest number of votes shall be ineligible for election and in
which there shall vote only (a) those governors who voted in the first ballot for a. person not
elected and (b) those governors whose votes for a person elected are deemed under 4 below to
have raised the votes cast for that person above fifteen percent of the eligible votes.
4. In determining whether the votes cast by a governor are to be deemed to have raised the
total of any person above fifteen percent of the eligible votes, the fifteen percent shall be deemed
to include, first, the votes of the governor casting the largest number of votes for such person,
then the votes of the governor casting the next largest number, and so on until fifteen percent is
reached.
5. Any governor, part of whose votes must be counted in order to raise the total of any person
above fourteen percent, shall be considered as casting all of his votes for such person even if the
total votes for such person thereby exceed fifteen percent.
6. If, after the second ballot, seven persons have not been elected, further ballots shall be held
on the same principles until seven persons have been elected, provided that after six persons are
elected, the seventh may be elected by a simple majority of the remaining votes and shall be
deemed to have been elected by all such votes.
(b) Articles of Agreement of the International Monetary Fund, July 22, 1944
The Governments on whose behalf the present Agreement is signed agree as follows:
INTRODUCTORY ARTICLE
The International Monetary Fund is established and shall operate in accordance with the
following provisions:
ARTICLE I. PURPOSES
The purposes of the International Monetary Fund are:
(i) To promote international monetary cooperation through a permanent institution which
provides the machinery for consultation and collaboration on international monetary problems.
(ii) To facilitate the expansion and balanced growth of international trade, and to contribute
thereby to the promotion and maintenance of high levels of employment and real income and to
the development of the productive resources of all members as primary objectives of economic
policy.
(iii) To promote exchange stability, to maintain orderly exchange arrangements among
members, and to avoid competitive exchange depreciation.

(iv) To assist in the establishment of a multilateral system of payments in respect of current
transactions between members and in the elimination of foreign exchange restrictions which
hamper the growth of world trade.
(v) To give confidence to members by making the Fund's resources available to them under
adequate safeguards, thus providing them with opportunity to correct maladjustments in their
balance of payments without resorting to measures destructive of national or international
prosperity.
(vi) In accordance with the above, to shorten the duration and lessen the degree of
disequilibrium. in the international balances of payments of members.
The Fund shall be guided in all its decisions by the purposes set forth in this Article.
ARTICLE II. MEMBERSHIP
SECTION 1. ORIGINAL MEMBERS
The original members of the Fund shall be those of the countries represented at the United
Nations Monetary and Financial Conference whose governments accept membership before the
date specified in Article XX, Section 2 (e).
SECTION 2. OTHER MEMBERS
Membership shall be open to the governments of other countries at such times and in
accordance with such terms as may be prescribed by the Fund.
ARTICLE III. QUOTAS AND SUBSCRIPTIONS
SECTION 1. QUOTAS
Each member shall be assigned a quota. The quotas of the members represented at the United
Nations Monetary and Financial conference which accept membership before the date specified
in article XX, Section 2 (e), shall be those set forth in Schedule A. The quotas of other members
shall be determined by the Fund.
SECTION 2. ADJUSTMENT OF QUOTAS
The Fund shall at intervals of five years review, and if it deems it appropriate propose an
adjustment of, the quotas of the members. It may also, if it thinks fit, consider at any other time
the adjustment of any particular quota at the request of the member concerned. A four- fifths
majority of the total voting power shall be required for any change in quotas and no quota shall
be changed without the consent of the member concerned.

SECTION 3. SUBSCRIPTIONS: TIME, PLACE, AND FORM OF PAYMENT
(a) The subscription of each member shall be equal to its quota and shall be paid in full to the
Fund at the appropriate depository on or before the date when the member becomes eligible
under Article XX, Section 4 (c) or (d), to buy currencies from the Fund.
(b) Each member shall pay in gold, as a minimum, the smaller of
(i) twenty-five percent of its quota; or
(ii) ten percent of its net official holdings of gold and United States dollars as at the date
when the Fund notifies members under Article XX, Section 4 (a) that it will shortly be in a
position to begin exchange transactions.
Each member shall furnish to the Fund the data necessary to determine its net official
holdings of gold and United States dollars.
(c) Each member shall pay the balance of its quota in its own currency.
(d) If the net official holdings of gold and United States dollars of any member as at the date
referred to in (b) (ii) above are not ascertainable because its territories have been occupied by the
enemy, the Fund shall fix an appropriate alternative date for determining such holdings. If such
date is later than that on which the country becomes eligible under Article XX, Section 4 (c) or
(d), to buy currencies from the Fund, the Fund and the member shall agree on a provisional gold
payment to be made under (b) above, and the balance of the member's subscription shall be paid
in the member's currency, subject to appropriate adjustment between the member and the Fund
when the net official holdings have been ascertained.
SECTION 4. PAYMENTS WHEN QUOTAS ARE CHANGED
(a) Each member which consents to an increase in its quota shall, within thirty days after the
date of its consent, pay to the Fund twenty-five percent of the increase in gold and the balance in
its own currency. If, however, on the date when the member consents to an increase, its monetary
reserves are less than its new quota, the Fund may reduce the proportion of the increase to be
paid in gold.
(b) If a member consents to a reduction in its quota, the Fund shall, within thirty days after
the date of the consent, pay to the member an amount equal to the reduction. The payment shall
be made in the member's currency and in such amount of gold as may be necessary to prevent
reducing the Fund's holdings of the currency below seventy-five percent of the new quota.
SECTION 5. SUBSTITUTION OF SECURITIES FOR CURRENCY
The Fund shall accept from any member in place of any part of the member's currency which
in the judgment of the Fund is not needed for its operations, notes or similar obligations issued

by the member or the depository designated by the member tinder Article XIII, Section 2, which
shall be non- negotiable, non- interest bearing and payable at their par value on demand by
crediting the account of the Fund in the designated depository. This Section shall apply no t only
to currency subscribed by members but also to any currency otherwise due to, or acquired by, the
Fund.
ARTICLE IV. PAR VALUES OF CURRENCIES
SECTION 1. EXPRESSION OF PAR VALUES
(a) The par value of the currency of each member shall be expressed in terms of gold as a
common denominator or in terms of the United States dollar of the weight and fineness in effect
on July 1, 1944.
(b) All computations relating to currencies of members for the purpose of applying the
provisions of this Agreement shall be on the basis of their par values.
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. FOREIGN EXCHANGE DEALINGS BASED ON PARITY
The maximum and the minimum rates for exchange transactions between the currencies of
members taking place within their territories 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 promote exchange stability, to
maintain orderly exchange arrangements with other members, and to avoid competitive excha nge
alterations.
(b) Each member undertakes, through appropriate measures consistent 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 international 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. CHANGES IN PAR VALUES
(a) A member shall not propose a change in the par value of its currency 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 proposed change falls within (i), (ii), or (iii) of (c) above.
(e) A member may change the par value of its currency without the concurrence of the Fund
if the change does not affect the international transactions of members of the Fund.
(f) The Fund shall concur in a proposed change which is within the terms of (c) (ii) or (c) (iii)
above if it is satisfied that the change is necessary to correct a fundamental disequilibrium. In
particular, provided it is so satisfied, it shall not object to a proposed change because of the
domestic social or political policies of the member proposing the change.
SECTION 6. EFFECT OF UNAUTHORIZED CHANGES
If a member changes the par value of its currency despite the objection of the Fund, in cases
where the Fund is entitled to object, the member shall be ineligible to use the resources of the
Fund unless the Fund otherwise determines; and if, after the expiration of a reasonable period,
the difference between the member and the Fund continues, the matter shall be subject to the
provisions of Article XV, Section 2 (b).
SECTION 7. UNIFORM CHANGES IN PAR VALUES
Notwithstanding the provisions of Section 5 (b) of this Article, the Fund by a majority of the
total voting power may make uniform proportionate changes in the par values of the currencies
of all members provided each such change is approved by every member which has ten percent

or more of the total of the quotas. The par value of a member's currency shall, however, not be
changed under this provision if, within seventy-two hours of the Fund's action, the member
informs the Fund that it does not wish the par value of its currency to be changed by such action.
SECTION 8. MAINTENANCE OF GOLD VALUE OF THE FUND'S ASSETS
(a) The gold value of the Fund's assets shall be maintained notwithstanding changes in the par
or foreign exchange value of the currency of any member.
(b) Whenever (i) the par value of a member's currency is reduced, or (ii) the foreign exchange
value of a member's currency has, in the opinion of the Fund, depreciated to a significant extent
within that member's territories, the member sha ll pay to the Fund within a reasonable time an
amount of its own currency equal to the reduction in the gold value of its currency held by the
Fund.
(c) Whenever the par value of a member's currency is increased, the Fund shall return to such
member within a reasonable time an amount in its currency equal to the increase in the gold
value of its currency held by the Fund.
(d) The provisions of this Section shall apply to a uniform proportionate change in the par
values of the currencies of all members, unless at the time when such a change is proposed the
Fund decides otherwise.
SECTION 9. SEPARATE CURRENCIES WITHIN A MEMBER'S TERRITORIES
A member proposing a change in the par value of its currency shall be deemed, unless it
declares otherwise, to be proposing a corresponding change in the par value of the separate
currencies of all territories in respect of which it has accepted this Agreement under Article XX,
Section 2 (g). It shall, however, be open to a member to declare that its proposal relates either to
the metropolitan currency alone, or only to one or more specified separate currencies, or to the
metropolitan currency and one or more specified separate currencies.
ARTICLE V. TRANSACTIONS WITH THE FUND
SECTION 1. AGENCIES DEALING WITH THE FUND
Each member shall deal with the Fund only through its Treasury, central bank, stabilization
fund or other similar fiscal agency and the Fund shall deal only with or through the same
agencies.
SECTION 2. LIMITATION ON THE FUND'S OPERATIONS
Except as otherwise provided in this Agreement, operations on the account of the Fund shall
be limited to transactions for the purpose of supplying a member, on the initiative of such

member, with the currency of another member in exchange for gold or for the currency of the
member desiring to make the purchase.
SECTION 3. CONDITIONS GOVERNING USE OF THE FUND'S RESOURCES
(a) A member shall be entitled to buy the currency of another member from the Fund in
exchange for its own currency subject to the following conditions :
(i) The member desiring to purchase the currency represents that it is presently needed for
making in that currency payments which are consistent with the provisions of this Agreement;
(ii) The Fund has not given notice under Article VII, Section 3, that its holdings of the
currency desired have become scarce;
(iii) The proposed purchase would not cause the Fund's holdings of the purchasing member's
currency to increase by more than twenty- five percent of its quota during the period of twelve
months ending on the date of the purchase nor to exceed two hundred percent of its quota, but
the twenty- five percent limitation shall apply only to the extent that the Fund's holdings of the
member's currency have been brought above seventy- five percent of its quota if they had been
below that amount;
(iv) The Fund has not previously declared under Section 5 of this Article, Article IV, Section
6, Article VI, Section 1, or Article XV, Section 2 (a), that the member desiring to purchase
ineligible to use the resources of the Fund.
(b) A member shall not be entitled without the permission of the Fund to use the Fund's
resources to acquire currency to hold against forward exchange transactions.
SECTION 4. WAIVER OF CONDITIONS
The Fund may in its discretion, and on terms which safeguard its interests, waive any of the
conditions prescribed in Section 3 (a) of this Article, especially in the case of members with a
record of avoiding large or continuous use of the Fund's resources. In making a waiver it shall
take into consideration periodic or exceptional requirements of the member requesting the
waiver. The Fund shall also take into consideration a member's willingness to pledge as
collateral security gold, silver, securities, or other acceptable assets having a value sufficient in
the opinion of the Fund to protect its interests and may require as a condition of waiver the
pledge of such collateral security.
SECTION 5. INELIGIBILITY TO USE THE FUND'S RESOURCES
Whenever the Fund is of the opinion that any member is using the resources of the Fund in a
manner contrary to the purposes of the Fund, it shall present to the member a report setting forth
the views of the Fund and prescribing a suitable time for reply. After presenting such a report to
a member, the Fund may limit the use of its resources by the member. If no reply to the report is

received from the member within the prescribed time, or if the reply received is unsatisfactory,
the Fund may continue to limit the member's use of the Fund's resources or may, aft er giving
reasonable notice to the member, declare it ineligible to use the resources of the Fund.
SECTION 6. PURCHASES OF CURRENCIES FROM THE FUND FOR GOLD
(a) Any member desiring to obtain, directly or indirectly, the currency of another member for
gold shall, provided that it can do so with equal advantage, acquire it by the sale of gold to the
Fund.
(b) Nothing in this Section shall be deemed to preclude any member from selling in any
market gold newly produced from mines located within its territories.
SECTION 7. REPURCHASE BY A MEMBER OF ITS CURRENCY HELD BY THE
FUND
(a) A member may repurchase from the Fund and the Fund shall sell for gold any part of the
Fund's holdings of its currency in excess of its quota.
(b) At the end of each financial year of the Fund, a member shall repurchase from the Fund
with gold or convertible currencies, as determined in accordance with Schedule B, part of the
Fund's holdings of its currency under the following conditions:
(i) Each member shall use in repurchases of its own currency from the Fund an amount of its
monetary reserves equal in value to one- half of any increase that has occurred during the year in
the Fund's holdings of its currency plus one-half of any increase, or minus one-half of any
decrease, that has occurred during the year in the member's monetary reserves. This rule shall not
apply when a member's monetary reserves have decreased during the year by more than the
Fund's holdings of its currency have increased.
(ii) If after the repurchase described in (i) above (if required) has been made, a member's
holdings of another member's currency (or of gold acquired from that member) are found to have
increased by reason of transactions in terms of that currency with other members or persons in
their territories, the member whose holdings of such currency (or gold) have thus increased shall
use the increase to repurchase its own currency from the Fund.
(c) None of the adjustments described in (b) above shall be carried to a point at which
(i) the member's monetary reserves are below its quota, or
(ii) the Fund's holdings of its currency are below seventy- five percent of its quota, or
(iii) the Fund's holdings of any currency required to be used are above seventy- five percent of
the quota of the member concerned.

SECTION 8. CHARGES
(a) Any member buying the currency of another member from the Fund in exchange for its
own currency shall pay a service charge uniform for all members of three- fourths percent in
addition to the parity price. The Fund in its discretion may increase this service charge to not
more than one percent or reduce it to not less than one-half percent.
(b) The Fund may levy a reasonable handling charge on any member buying gold from the
Fund or selling gold to the Fund.
(c) The Fund shall levy charges uniform for all members which shall be payable by any
member on the average daily balances of its currency held by the Fund in excess of its quota.
These charges shall be at the following rates:
(i) On amounts not more than twenty-five percent in excess of the quota: no charge, for the
first three months; one- half percent per annum for the next nine months; and thereafter an
increase in the charge of one-half percent for each subsequent year.
(ii) On amounts more than twenty-five percent and not more than fifty percent in excess of the
quota: an additional one-half percent for the first year; and an additional one-half percent for
each subsequent year.
(iii) On each additional bracket of twenty-five percent in excess of the quota: an additional
one-half percent for the first year; and an additional one-half percent for each subsequent year.
(d) Whenever the Fund's holdings of a member's currency are such that the charge applicable
to any bracket for any period has reached the rate of four percent per annum, the Fund and the
member shall consider means by which the Fund's holdings of the currency can be reduced.
Thereafter, the charges shall rise in accordance with the provisions of (c) above until they reach
five percent and failing agreement, the Fund may then impose such charges as it deems
appropriate.
(e) The rates referred to in (c) and (d) above may be changed by a three- fourths majority of
the total voting power.
(f) All charges shall be paid in gold. If, however, the member's monetary reserves are less
than one-half of its quota, it shall pay in gold only that proportion of the charges due which such
reserves bear to one-half of its quota, and shall pay the balance in its own currency.
ARTICLE VI. CAPITAL TRANSFERS
SECTION 1. USE OF THE FUND'S RESOURCES FOR CAPITAL TRANSFERS
(a) A member may not make net use of the Fund's resources to meet a large or sustained
outflow of capital, and the Fund may request a member to exercise controls to prevent such use

of the resources of the Fund. If, after receiving such a request, a member fails to exercise
appropriate controls, the Fund may declare the member ineligible to use the resources of the
Fund.
(b) Nothing in this Section shall be deemed
(i) to prevent the use of the resources of the Fund for capital transactions of reasonable
amount required for the expansion of exports or in the ordinary course of trade, banking or other
business, or
(ii) to affect capital movements which are met out of a member's own resources of gold and
foreign exchange, but members undertake that such capital movements will be in accordance
with the purposes of the Fund.
SECTION 2. SPECIAL PROVISIONS FOR CAPITAL TRANSFERS
If the Fund's holdings of the currency of a member have remained below seventy- five percent
of its quota for an immediately preceding period of not less than six months, such member, if it
has not been declared ineligible to use the resources of the Fund under Section 1 of this Article,
Article IV, Section 6, Article V, Section 5, or Article XV, Section 2 (a), shall be entitled,
notwithstanding the provisions of Section 1 (a) of this Article, to buy the currency of another
member from the Fund with its own currency for any purpose, including capital transfers.
Purchases for capital transfers under this Section shall not, however, be permitted if they have
the effect of raising the Fund's holdings of the currency of the member desiring to purchase
above seventy- five percent of its quota, or of reducing the Fund's holdings of the currency
desired below seventy- five percent of the quota of the member whose currency is desired.
SECTION 3. CONTROLS OF CAPITAL TRANSFERS
Members may exercise such controls as are necessary to regulate international capital
movements, but no member may exercise the se controls in a manner which will restrict
payments for current transactions or which will unduly delay transfers of funds in settlement of
commitments, except as provided in Article VII, Section 3 (b), and in Article XIV, Section 2.
ARTICLE VII. SCARCE CURRENCIES
SECTION 1. GENERAL SCARCITY OF CURRENCY
If the Fund finds that a general scarcity of a particular currency is developing, the Fund may
so inform members and may issue a report setting forth the causes of the scarcity and containing
recommendations designed to bring it to an end. A representative of the member whose currency
is involved shall participate in the preparation of the report.

SECTION 2. MEASURES TO REPLENISH THE FUND'S HOLDINGS OF SCARCE
CURRENCIES
The Fund may, if it deems such action appropriate to replenish its holdings of any member's
currency, take either or both of the following steps:
(i) Propose to the member that, on terms and conditions agreed between the Fund and the
member, the latter lend its currency to the Fund or that, with the approval of the member, the
Fund borrow such currency from some other source either within or outside the territories of the
member, but no member shall be under any obligation to make such loans to the Fund or to
approve the borrowing of its currency by the Fund from any other source.
(ii) Require the member to sell its currency to the Fund for gold.
SECTION 3. SCARCITY OF THE FUND'S HOLDINGS
(a) If it becomes evident to the Fund that the demand for a member's currency seriously
threatens the Fund's ability to supply that currency, the Fund, whether or not it has issued a
report under Section 1 of this Article, shall formally declare such currency scarce and shall
thenceforth apportion its existing and accruing supply of the scarce currency with due regard to
the relative needs of members, the general international economic situation and any other
pertinent considerations. The Fund shall also issue a report concerning its action.
(b) A formal declaration under (a) above shall operate as an authorization to any member,
after consultation with the Fund, temporarily to impose limitations on the freedom of exchange
operations in the scarce currency. Subject to the provisions of Article IV, Sections 3 and 4, the
member shall have complete jurisdiction in determining the nature of such limitations, but they
shall be no more restrictive than is necessary to limit the demand for the scarce currency to the
supply held by, or accruing to, the member in question; and they shall be relaxed and removed as
rapidly as conditions permit.
(c) The authorization under (b) above shall expire whenever the Fund formally declares the
currency in question to be no longer scarce.
SECTION 4. ADMINISTRATION OF RESTRICTIONS
Any member imposing restrictions in respect of the currency of any other member pursuant
to the provisions of Section 3 (b) of this Article shall give sympathetic consideration to any
representations by the other member regarding the administration of such restrictions.

SECTION 5. EFFECT OF OTHER INTERNATIONAL AGREEMENTS ON
RESTRICTIONS
Members agree not to invoke the obligations of any engagements entered into with other
members prior to this Agreement in such a manner as will prevent the operation of the provisions
of this Article.
ARTICLE VIII. GENERAL OBLIGATIONS OF MEMBERS
SECTION 1. INTRODUCTION
In addition to the obligations assumed under other articles of this Agreement, each member
undertakes the obligations set out in this Article.
SECTION 2. AVOIDANCE OF RESTRICTIONS ON CURRENT PAYMENTS
(a) Subject to the provisions of Article VII, Section 3 (b), and Article XIV, Section 2, no
member shall, without the approval of the Fund, impose restrictions on the making of payments
and transfers for current international transactions.
(b) Exchange contracts which involve the currency of any member and which are contrary to
the exchange control regulations of that member maintained or imposed consistently with this
Agreement shall be unenforceable in the territories of any member. In addition, members may,
by mutual accord, co-operate in measures for the purpose of making the exchange control
regulations of either member more effective, provided that such measures and regulations are
consistent with this Agreement.
SECTION 3. AVOIDANCE OF DISCRIMINATORY CURRENCY PRACTICES
No member shall engage in, or permit any of its fiscal agencies referred to in Article V,
Section 1, to engage in, any discriminatory currency arrangements or multiple currency practices
except as authorized under this Agreement or approved by the Fund. If such arrangements and
practices are engaged in at the date when this Agreement enters into force the member concerned
shall consult with the Fund as to their progressive removal unless they are maintained or
imposed under Article XIV, Section 2, in which case the provisions of Section 4 of that Article
shall apply.
SECTION 4. CONVERTIBILITY OF FOREIGN HELD BALANCES
(a) Each member shall buy balances of its currency held by another member if the latter, in
requesting the purchase, represents
(i) that the balances to be bought have been recently acquired as a result of current
transactions; or

(ii) that their conversion is needed for making payments for current transactions.
The buying member shall have the option to pay either in the currency of the member making
the request or in gold.
(b) The obligation in (a) above shall not apply
(i) when the convertibility of the balances has been restricted consistently with Section 2 of
this Article, or Article VI, Section 3; or
(ii) when the balances have accumulated as a result of transactions effected before the
removal by a member of restrictions maintained or imposed under Article XIV, Section 2; or
(iii) when the balances have been acquired contrary to the exchange regulations of the
member which is asked to buy them; or
(iv) when the currency of the member requesting the purchase has been declared scarce under
Article VII, Section 3 (a); or
(v) when the member requested to make the purchase is for any reason not entitled to buy
currencies of other members from the Fund for its own currency.
SECTION 5. FURNISHING OF INFORMATION
(a) The Fund may require members to furnish it with such information as it deems necessary
for its operations, including, as the minimum necessary for the effective discharge of the Fund's
duties, national data on the following matters:
(i) Official holdings at home and abroad, of (1) gold, (2) foreign exchange.
(ii) Holdings at home and abroad by banking and financial agencies, other than official
agencies, of (1) gold, (2) foreign exchange.
(iii) Production of gold.
(iv) Gold exports and imports according to countries of destination and origin.
(v) Total exports and imports of merchandise, in terms of local currency values, according to
countries of destination and origin.
(vi) International balance of payments, including (1) trade in goods and services, (2) gold
transactions, (3) known capital transactions, and (4) other items.

(vii) International investment position, i.e., investments within the territories of the member
owned abroad and investments abroad owned by persons in its territories so far as it is possible
to furnish this information.
(viii) National income.
(ix) Price indices, i.e., indices of commodity prices in wholesale and retail markets and of
export and import prices.
(x) Buying and selling rates for foreign currencies.
(xi) Exchange controls, i.e., a comprehensive statement of exchange controls in effect at the
time of assuming membership in the Fund and details of subsequent changes as they occur.
(xii) Where official clearing arrangements exist, details of amounts awaiting clearance in
respect of commercial and financial transactions, and of the length of time during which such
arrears have been outstanding.
(b) In requesting information the Fund shall take into consideration the varying ability of
members to furnish the data requested. Members shall be under no obligation to furnish
information in such detail that the affairs of individuals or corporations are disclosed. Members
undertake, however, to furnish the desired information in as detailed and accurate a manner as is
practicable, and, so far as possible, to avoid mere estimates.
(c) The Fund may arrange to obtain further information by agreement with members. It shall
act as a centre for the collection and exchange of information on monetary and financial
problems, thus facilitating the preparation of studies designed to assist members in developing
policies which further the purposes of the Fund.
SECTION 6. CONSULTATION BETWEEN MEMBERS REGARDING EXISTING
INTERNATIONAL AGREEMENTS
Where under this Agreement a member is authorized in the special or temporary
circumstances specified in the Agreement to maintain or establish restrictions on exchange
transactions, and there are other engagements between members entered into prior to this
Agreement which conflict with the application of such restrictions, the parties to such
engagements will consult with one another with a view to making such mutually acceptable
adjustments as may be necessary. The provisions of this Article shall be without prejudice to the
operation of Article VII, Section 5.

ARTICLE IX. STATUS, IMMUNITIES AND PRIVILEGES
SECTION 1. PURPOSES OF ARTICLE
To enable the Fund to fulfill the functions with which it is entrusted, the status, immunities
and privileges set forth in this Article shall be accorded to the Fund in the territories of each
member.
SECTION 2. STATUS OF THE FUND
The Fund shall possess full juridical personality, and, in particular, the capacity:
(i) to contract;
(ii) to acquire and dispose of immovable and movable property;
(iii) to institute legal proceedings.
SECTION 3. IMMUNITY FROM JUDICIAL PROCESS
The Fund, its property and its assets, wherever located and by whomsoever held, shall enjoy
immunity from every form of judicial process except to the extent that it expressly waives its
immunity for the purpose of any proceedings or by the terms of any contract.
SECTION 4. IMMUNITY FROM OTHER ACTION
Property and assets of the Fund, wherever located and by whomsoever held, shall be immune
from search, requisition, confiscation, expropriation or any other form of seizure by executive or
legislative action.
SECTION 5. IMMUNITY OF ARCHIVES
The archives of the Fund shall be inviolable.
SECTION 6. FREEDOM OF ASSETS FROM RESTRICTIONS
To the extent necessary to carry out the operations provided for in this Agreement, all
property and assets of the Fund shall be free from restrictions, regulations, controls and
moratoria of any nature.
SECTION 7. PRIVILEGE FOR COMMUNICATIONS
The official communications of the Fund shall be accorded by members the same treatment
as the official communications of other members.

SECTION 8. IMMUNITIES AND PRIVILEGES OF OFFICERS AND EMPLOYEES
All governors, executive directors, alternates, officers and employees of the Fund
(i) shall be immune from legal process with respect to acts performed by them in their official
capacity except when the Fund waives this immunity.
(ii) not being local nationals, shall be granted the same immunities from immigration
restrictions, alien registration requirements and national service obligations and the same
facilities as regards exchange restrictions as are accorded by members to the representatives,
officials, and employees of comparable rank of other members.
(iii) shall be granted the same treatment in respect of traveling facilities as is accorded by
members to representatives, officials and employees of comparable rank of other members.
SECTION 9. IMMUNITIES FROM TAXATION
(a) The Fund, its assets, property, income and its operations and transactions authorized by
this Agreement, shall be immune from an taxation and from all customs duties. The Fund shall
also be immune from liability for the collection or payment of any tax or duty.
(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Fund to
executive directors, alternates, officers or employees of the Fund who are not local citizens, local
subjects, or other local nationals.
(c) No taxation of any kind shall be levied on any obligation or security issued by the Fund,
including any dividend or interest thereon, by whomsoever held
(i) which discriminates against such obligation or security solely because of its origin; or
(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is
issued, made payable or paid, or the location of any office or place of business maintained by the
Fund.
SECTION 10. APPLICATION OF ARTICLE
Each member shall take such action as is necessary in its own territories for the purpose of
making effective in terms of its own law the principles set forth in this Article and shall inform
the Fund of the detailed action which it has taken.
ARTICLE X. RELATIONS WITH OTHER INTERNATIONAL ORGANIZATIONS
The Fund shall cooperate within the terms of this Agreement with any general international
organization and with public international organizations having specialized responsibilities in
related fields. Any arrangements for such cooperation which would involve a modification of

any provision of this Agreement may be effected only after amendment to this Agreement under
Article XVII.
ARTICLE XI. RELATIONS WITH NON-MEMBER COUNTRIES
SECTION 1. UNDERTAKINGS REGARDING RELATIONS WITH NON-MEMBER
COUNTRIES
Each member undertakes:
(i) Not to engage in, nor to permit any of its fiscal agencies referred to in Article V, Section 1,
to engage in, any transactions with a non- member or with persons in a non- member's territories
which would be contrary to the provisions of this Agreement or the purposes of the Fund;
(ii) Not to cooperate with a non- member or with persons in a non- member's territories in
practices which would be contrary to the provisions of this Agreement or the purposes of the
Fund; and
(iii) To cooperate with the Fund with a view to the application in its territories of appropriate
measures to prevent transactions with non- members or with persons in their territories which
would be-contrary to the provisions of this Agreement or the purposes of the Fund.
SECTION 2. RESTRICTIONS ON TRANSACTIONS WITH NON-MEMBER
COUNTRIES
Nothing in this Agreement shall affect the right of any member to impose restrictions on
exchange transactions with non- members or with persons in their territories unless the Fund
finds that such restrictions prejudice the interests of members and are contrary to the purposes of
the Fund.
ARTICLE XII. ORGANIZATION AND MANAGEMENT
SECTION 1. STRUCTURE OF THE FUND
The Fund shall have a Board of Governors, Executive Directors, a Managing Director and a
staff.
SECTION 2. BOARD OF GOVERNORS
(a) All powers of the Fund shall be vested in the Board of Governors, consisting of one
governor and one alternate appointed by each member in such manner as it may determine. Each
governor and each alternate shall serve for five years, subject to the pleasure of the member
appointing him, and may be reappointed. No alternate may vote except in the absence of his
principal. The Board shall select one of the governors as chairman.

(b) The Board of Governors may delegate to the Executive Directors authority to exercise any
powers of the Board, except the power to:
(i) Admit new members and determine the conditions of their admission.
(ii) Approve a revision of quotas.
(iii) Approve a uniform change in the par value of the currencies of all members.
(iv) Make arrangements to cooperate with other international organizations (other than
informal arrangements of a temporary or administrative character).
(v) Determine the distribution of the net income of the Fund.
(vi) Require a member to withdraw.
(vii) Decide to liquidate the Fund.
(viii) Decide appeals from interpretations of this Agreement given by the Executive
Directors.
(c) The Board of Governors shall hold an annual meeting and such other meetings as may be
provided for by the Board or called by the Executive Directors. Meetings of the Board shall be
called by the Directors whenever requested by five members or by members having one quarter
of the total voting power.
(d) A quorum for any meeting of the Board of Governors shall be a majority of the governors
exercising not less than two-thirds of the total voting power.
(e) Each governor shall be entitled to cast the number of votes allotted under Section 5 of this
Article to the member appointing him.
(f) The Board of Governors may by regulation establish a procedure whereby the Executive
Directors, when they deem such action to be in the best interests of the Fund, may obtain a vote
of the governors on a specific question without calling a meeting of the Board.
(g) The Board of Governors, and the Executive Directors to the extent authorized, may adopt
such rules and regulations as may be necessary or appropriate to conduct the business of the
Fund.
(h) Governors and alternates shall serve as such without, compensation from the Fund, but
the Fund shall pay them reasonable expenses incurred in attending meetings.
(i) The Board of Governors shall determine the remuneration to be paid to the Executive
Directors and the salary and terms of the contract of service of the Managing Director.

SECTION 3. EXECUTIVE DIRECTORS
(a) The Executive Directors shall be responsible for the conduct of the general operations of
the Fund, and for this purpose shall exercise all the powers dele gated to them by the Board of
Governors.
(b) There shall be not less than twelve directors who need not be governors, and of whom
(i) Five shall be appointed by the five members having the largest quotas;
(ii) Not more than two shall be appointed when the provisions of (c) below apply;
(iii) Five shall be elected by the members not entitled to appoint directors, other than the
American Republics; and
(iv) Two shall be elected by The American Republics not entitled to appoint directors.
For the purposes of this paragraph, members means governments of countries whose names
are set forth in Schedule A, whether they become members in accordance with Article XX or in
accordance with Article 11, Section 2. When governments of other countries become members,
the Board of Governors may, by a four- fifths majority of the total voting power, increase the
number of directors to be elected.
(c) If, at the second regular election of directors and thereafter, the members entitled to
appoint directors under (b) (i) above do not include the two members, the holdings of whose
currencies by the Fund have been, on the average over the preceding two years, reduced below
their quotas by the largest absolute amounts in terms of gold as a common denominator, either
one or both of such members, as the case may be, shall be entitled to appoint a director.
(d) Subject to Article XX, Section 3 (b) elections of elective directors shall be conducted at
intervals of two years in accordance with the provisions of Schedule C, supplemented by such
regulations as the Fund deems appropriate. Whenever the Board of Governors increases the
number of directors to be elected under (b) above, it shall issue regulations making appropriate
changes in the proportion of votes required to elect directors under the provisions of Schedule C.
(e) Each director shall appoint an alternate with full power to act for him when he is not
present. When the directors appointing them are present, alternates may participate in meetings
but may not vote.
(f) Directors shall continue in office until their successors are appointed or elected. If the
office of an elected director becomes vacant more than ninety days before the end of his term,
another director shall be elected for the remainder of the term by the members who elected the
former director. A majority of the votes cast shall be required for election. While the office
remains vacant, the alternate of the former director shall exercise his powers, except that of
appointing an alternate.

(g) The Executive Directors shall function in continuous session at the principal office of the
Fund and shall meet as often as the business of the Fund may require.
(h) A quorum for any meeting of the Executive Directors shall be a majority of the directors
representing no t less than one- half of the voting power.
(i) Each appointed director shall be entitled to cast the number of votes allotted under Section
5 of this Article to the member appointing him. Each elected director shall be entitled to cast the
number of votes which counted towards his election. When the provisions of Section 5 (b) of this
Article are applicable, the votes which a director would otherwise be entitled to cast shall be
increased or decreased correspondingly. All the votes which a director is entitled to cast shall be
cast as a unit.
(j) The Board of Governors shall adopt regulations under which a member not entitled to
appoint a director under (b) above may send a representative to attend any meeting of the
Executive Directors when a request made by, or a matter particularly affecting, that member is
under consideration.
(k) The Executive Directors may appoint such committees as they deem advisable.
Membership of committees need not be limited to governors or directors or their alternates.
SECTION 4. MANAGING DIRECTOR AND STAFF
(a) The Executive Directors shall select a Managing Director who shall not be a governor or
an executive director. The Managing Director shall be chairman of the Executive Directors, but
shall have no vote except a deciding vote in case of an equal division. He may participate in
meetings of the Board of Governors, but shall not vote at such meetings. The Managing Director
shall cease to hold office when the Executive Directors so decide.
(b) The Managing Director shall be chief of the operating staff of the Fund and shall conduct,
under the direction of the Executive Directors, the ordinary business of the Fund. Subject to the
general control of the Executive Directors, he shall be responsible for the organization,
appoint ment and dismissal of the staff of the Fund.
(c) The Managing Director and the staff of the Fund, in the discharge of their functions, shall
owe their duty entirely to the Fund and to no other authority. Each member of the Fund shall
respect the international character of this duty and shall refrain from all attempts to influence any
of the staff in the discharge of his functions.
(d) In appointing the staff the Managing Director shall, subject to the paramount importance
of securing the highest standards of efficiency and of technical competence, pay due regard to
the importance of recruiting personnel on as wide a geographical basis as possible.

SECTION 5. VOTING
(a) Each member shall have two hundred fifty votes plus one additional vote for each part of
its quota equivalent to one hundred thousand United States dollars.
(b) Whenever voting is required under Article V, Section 4 or 5, each member shall have the
number of votes to which it is entitled under (a) above, adjusted:
(i) by the addition of one vote for the equivalent of each four hundred thousand United States
dollars of net sales of its currency up to the date when the vote is taken, or
(ii) by the subtraction of one vote for the equivalent of each four hundred thousand United
States dollars of its net purchases of the currencies of other members up to the date when the
vote is taken
provided, that neither net purchases nor net sales shall be deemed at any time to exceed an
amount equal to the quota of the member involved.
(c) For the purpose of all computations under this Section, United States dollars shall be
deemed to be of the weight and fineness in effect on July 1, 1944, adjusted for any uniform
change under Article IV, Section 7, if a waiver is made under Section 8 (d) of that Artic le.
(d) Except as otherwise specifically provided, all decisions of the Fund shall be made by a
majority of the votes cast.
SECTION 6. DISTRIBUTION OF NET INCOME
(a) The Board of Governors shall determine annually what part of the Fund's net income shall
be placed to reserve and what part, if any, shall be distributed.
(b) If any distribution is made, there shall first be distributed a two percent non-cumulative
payment to each member on the amount by which seventy- five percent of its quota exceeded the
Fund's average holdings of its currency during that year. The balance shall be paid to all
members in proportion to their quotas. Payments to each member shall be made in its own
currency.
SECTION 7. PUBLICATION OF REPORTS
(a) The Fund shall publish an annual report containing an audited statement of its accounts,
and shall issue, at intervals of three months or less, a summary statement of its transactions and
its holdings of gold and currencies of members.
(b) The Fund may publish such other reports as it deems desirable for carrying out its
purposes.

SECTION 8. COMMUNICATION OF VIEWS TO MEMBERS
The Fund shall at all times have the right to communicate its views informally to any member
on any matter arising under this Agreement. The Fund may, by a two-thirds majority of the total
voting power, decide to publish a report made to a member regarding its monetary or economic
conditions and developments which directly tend to produce a serious disequilibrium in the
international balance of payments of members. If the member is not entitled to appoint an
executive director, it shall be entitled to representation in accordance with Section 3 (j) of this
Article. The Fund shall not publish a report involving changes in the fundamental structure of the
economic organization of members.
ARTICLE XIII. OFFICES AND DEPOSITORIES
SECTION 1. LOCATION OF OFFICES
The principal office of the Fund shall be located in the territory of the member having the
largest quota, and agencies or branch offices may be established in the territories of other
members.
SECTION 2. DEPOSITORIES
(a) Each member country shall designate its central bank as a depository for all the Fund's
holdings of its currency, or if it has no central bank it shall designate such other institution as
may be acceptable to the Fund.
(b) The Fund may hold other assets, including gold, in the depositories designated by the five
members having the largest quotas and in such other designated depositories as the Fund may
select. Initially at least one-half of the holdings of the Fund shall be held in the depository
designated by the member in whose territories the Fund has its principal office and at least forty
percent shall be held in the depositories designated by the remaining four members referred to
above. However, all transfers of gold by the Fund shall be made with due regard to the costs of
transport and anticipated requirements of the Fund. In an emergency the Executive Directors
may transfer all or any part of the Fund's gold holdings to any place where they can be
adequately protected.
SECTION 3. GUARANTEE OF THE FUND'S ASSETS
Each member guarantees all assets of the Fund against loss resulting from failure or default
on the part of the depository designated by it.

ARTICLE XIV. TRANSITIONAL PERIOD
SECTION 1. INTRODUCTION
The Fund is not intended to provide facilities for relief or reconstruction or to deal with
international indebtedness arising out of the war.
SECTION 2. EXCHANGE RESTRICTIONS
In the post-war transitional period members may, notwithstanding the provisions of any other
articles of this Agreement, maintain and adapt to changing circumstances (and, in the case of
members whose territories have been occupied by the enemy, introduce where necessary)
restrictions on payments and transfers for current international transactions. Members shall,
however, have continuous regard in their foreign exchange policies to the purposes of the Fund;
and, as soon as conditions permit, they shall take all possible measures to develop such
commercial and financial arrangements with other members as will facilitate international
payments and the maintenance of exchange stability. In particular, members shall withdraw
restrictions maintained or imposed under this Section as soon as they are satisfied that they will
be able, in the absence of such restrictions, to settle their balance of payments in a manner which
will not unduly encumber their access to the resources of the Fund.
SECTION 3. NOTIFICATION TO THE FUND
Each member shall notify the Fund before it becomes eligible under Article XX, Section 4 (c)
or (d), to buy currency from the Fund, whether it intends to avail itself of the transitional
arrangements in Section 2 of this Article, or whether it is prepared to accept the obligations of
Article VIII, Sections 2, 3, and 4. A member availing itself of the transitional arrangements shall
notify the Fund as soon thereafter as it is prepared to accept the above-mentioned obligations.
SECTION 4. ACTION OF THE FUND RELATING TO RESTRICTIONS
Not later than three years after the date on which the Fund begins operations and in each year
thereafter, the Fund shall report on the restrictions still in force under Section 2 of this Article.
Five years after the date on which the Fund begins operations, and in each year thereafter, any
member still retaining any restrictions inconsistent with Article VIII, Sections 2, 3, or 4, shall
consult the Fund as to their further retention. The Fund may, if it deems such action necessary in
exceptional circumstances, make representations to any member that conditions are favorable for
the withdrawal of any particular restriction, or for the general abandonment of restrictions,
inconsistent with the provisions of any other articles of this Agreement. The member shall be
given a suitable time to reply to such representations. If the Fund finds that the member persists
in maintaining restrictions which are inconsistent with the purposes of the Fund, the member
shall be subject to Article XV, Section 2 (a).

SECTION 5. NATURE OF TRANSITIONAL PERIOD
In its relations with members, the-Fund shall recognize that the post-war transitional period
will be one of change and adjustment and in making decisions on requests occasioned thereby
which are presented by any member it shall give the member the benefit of any reasonable doubt.
ARTICLE XV. WITHDRAWAL FROM MEMBERSHIP
SECTION 1. RIGHT OF MEMBERS TO WITHDRAW
Any member may withdraw from the Fund at any time by transmitting a notice in writing to
the Fund at its principal office. Withdrawal shall become effective on the date such notice is
received.
SECTION 2. COMPULSORY WITHDRAWAL
(a) If a member fails to fulfill any of its obligations under this Agreement, the Fund may
declare the member ineligible to use the resources of the Fund. Nothing in this Section shall be
deemed to limit the provisions of Article IV, Section 6, Article V, Section 5, or Article VI,
Section 1.
(b) If, after the expiration of a reasonable period the member persists in its failure to fulfill
any of its obligations under this Agreement, or a difference between a member and the Fund
under Article IV, Section 6, continues, that member may be required to withdraw from
membership in the Fund by a decision of the Board of Governors carried by a majority of the
governors representing a majority of the total voting power.
(c) Regulations shall be adopted to ensure that before action is taken against any member
under (a) or (b) above, the member shall be informed in reasonable time of the complaint against
it and given an adequate opportunity for stating its case, both orally and in writing.
SECTION 3. SETTLEMENT OF ACCOUNTS WITH MEMBERS WITHDRAWING
When a member withdraws from the Fund, normal transactions of the Fund in its currency
shall cease and settlement of all accounts between it and the Fund shall be made with reasonable
dispatch by agreement between it and the Fund. If agreement is not reached promptly, the
provisions of Schedule D shall apply to the settlement of accounts.
ARTICLE XVI. EMERGENCY PROVISIONS
SECTION 1. TEMPORARY SUSPENSION
(a) In the event of an emergency or the development of unforeseen circumstances threatening
the operations of the Fund, the Executive Directors by unanimous vote may suspend for a period
of not more than one hundred twenty days the operation of any of the following provisions:

(i) Article IV, Sections 3 and 4 (b)
(ii) Article V, Sections 2, 3, 7, 8 (a) and (f) (iii) Article VI, Section 2 (iv) Article XI, Section
1
(b) Simultaneously with any decision to suspend the operation of any of the foregoing
provisions, the Executive Directors shall call a meeting of the Board of Governors for the earliest
practicable date.
(c) The Executive Directors may not extend any suspension beyond one hundred twenty days.
Such suspension may be extended, however, for an additional period of not more than two
hundred forty days, if the Board of Governors by a four- fifths majority of the total voting power
so decides, but it may not be further extended except by amendment of this Agreement pur suant
to Article XVII.
(d) The Executive Directors may, by a majority of the total voting power, terminate such
suspension at any time.
SECTION 2. LIQUIDATION OF THE FUND
(a) The Fund may not be liquidated except by decision of the Board of Governors. In an
emergency, if the Executive Directors decide that liquidation of the Fund may be necessary, they
may temporarily suspend all transactions, pending decision by the Board.
(b) If the Board of Governors decides to liquidate the Fund, the Fund shall forthwith cease to
engage in any activities except those incidental to the orderly collection and liquidation of its
assets and the settlement of its liabilities, and all obligations of members under this Agreement
shall cease except those set out in this Article, in Article XVIII, paragraph (c), in Schedule D,
paragraph 7, and in Schedule E.
(c) Liquidation shall be administered in accordance with the provisions of Schedule E.
ARTICLE XVII. AMENDMENTS
(a) Any proposal to introduce modifications in this Agreement, whether emanating from a
member, a governor or the Executive Directors, shall be communicated to the chairman of the
Board of Governors who shall bring the proposal before the Board. If the proposed amendment is
approved by the Board the Fund shall, by circular letter or telegram, ask all members whether
they accept the proposed amendment. When three-fifths of the members, having four-fifths of
the total voting power, have accepted the proposed amendment, the Fund shall certify the fact by
a formal communication addressed to all members.
(b) Notwithstanding (a) above, acceptance by all members is required in the case of any
amendment modifying.

(i) the right to withdraw from the Fund (Article XV, Section 1);
(ii) the provision that no change in a member's quota shall be made without its consent
(Article III, Section 2);
(iii) the provision that no change may be made in the par value of a member's currency except
on the proposal of that member (Article IV, Section 5 (b)).
(c) Amendments shall enter into force for all members three months after the date of the
formal communication unless a shorter period is specified in the circular letter or telegram.
ARTICLE XVIII. INTERPRETATION
(a) Any question of interpretation of the provisions of this Agreement arising between any
member and the Fund or between any members of the Fund shall be submitted to the Executive
Directors for their decision. If the question particularly affects any member not entitled to
appoint an executive director it shall be entitled to representation in accordance with Article XII,
Section 3 (j).
(b) In any case where the Executive Directors have given a decision under (a) above, any
member may require that the question be referred to the Board of Governors, whose decision
shall be final. Pending the result of the reference to the Board the Fund may, so far as it deems
necessary, act on the basis of the decision of the Executive Directors.
(c) Whenever a disagreement arises between the Fund and a member which has withdrawn,
or between the Fund and any member during liquidation of the Fund, such disagreement shall be
submitted to arbitration by a tribunal of three arbitrators, one appointed by the Fund, another by
the member or withdrawing member and as umpire who, unless the parties otherwise agree, shall
be appointed by the President of the Permanent Court of International Justice or such other
authority as may have been prescribed by regulation adopted by the Fund. The umpire shall have
full power to settle all questions of procedure in any case where the parties are in disagreement
with respect thereto.
ARTICLE XIX. EXPLANATION OF TERMS
In interpreting the provisions of this Agreement the Fund and its members shall be guided by
the following:
(a) A member's monetary reserves means its net official holdings of gold, of convertible
currencies of other members, and of the currencies of such non- members as the Fund may
specify.
(b) The official holdings of a member means central holdings (that is, the holdings of its
Treasury, central bank, stabilization fund, or similar fiscal agency).

(c) The holdings of other official institutions or other banks within its territories may, in any
particular case, be deemed by the Fund, after consultation with the member, to be official
holdings to the extent that they are substantially in excess of working balances; provided that for
the purpose of determining whether, in a particular case, holdings are in excess of working
balances, there shall be deducted from such holdings amounts of currency due to official
institutions and banks in the territories of members or non- members specified under (d) below.
(d) A member's holdings of convertible currencies means its holdings of the currencies of
other members which are not availing themselves of the transitional arrangements under Article
XIV, Section 2, together with its holdings of the currencies of such non- members as the Fund
may from time to time specify. The term currency for this purpose includes without limitation
coins, paper money, bank balances, bank acceptances, and government obligations issued with a
maturity not exceeding twelve months.
(e) A member's monetary reserves shall be calculated by deducting from its central holdings
the currency liabilities to the Treasuries, central banks, stabilization funds,, or similar fiscal
agencies of other members or non- members specified under (d) above, together with similar
liabilities to other official institutions and other banks in the. territories of members, or nonmembers specified under (d) above. To these net holdings shall be added the sums deemed to be
official holdings of other official institutions and other banks under (c) above.
(f) The Fund's holdings of the currency of a member shall include any securities accepted by
the Fund under Article III, Section 5.
(g) The Fund, after consultation with a member which is availing itself of the transitional
arrangements under Article XIV, Section 2, may deem holdings of the currency of that member
which carry specified rights of conversion into another currency or into gold to be holdings of
convertible currency for the purpose of the calculation of monetary reserves.
(h) For the purpose of calculating gold subscriptions under Article III, Section 3, a member's
net official holdings of gold and United States dollars shall consist of its official holdings of gold
and United States currency after deducting central holdings of its currency by other countries and
holdings of its currency by other official institutions and other banks if these hold ings carry
specified rights of conversion into gold or United States currency.
(i) Payments for current transactions means payments which are not for the purpose of
transferring capital, and includes, without limitation:
(1) All payments due in connectio n with foreign trade, other current business, including
services, and normal short-term banking and credit facilities;
(2) Payments due as interest on loans and as net income from other investments;

(3) Payments of moderate amount for amortization of loans or for depreciation of direct
investments;
(4) Moderate remittances for family living expenses.
The Fund may, after consultation with the members concerned, determine whether certain
specific transactions are to be considered current transactions or capital transactions.
ARTICLE XX. FINAL PROVISIONS
SECTION 1. ENTRY INTO FORCE
This Agreement shall enter into force when it has been signed on, behalf of governments
having sixty-five percent of the total of the quotas set forth in Schedule A and when the
instruments referred to in Section 2 (a) of this Article have been deposited on their behalf, but in
no event shall this Agreement enter into force before May 1, 1945.
SECTION 2. SIGNATURE
(a) Each government on whose behalf this Agreement is signed shall deposit with the
Government of the United States of America an instrument setting forth that it has accepted this
Agreement in accordance with its law and has taken all steps necessary to enable it to carry out
all of its obligations under this Agreement.
(b) Each government shall become a member of the Fund as from the date of the deposit on
its behalf of the instrument referred to in (a) above, except that no government shall become a
member before this Agreement enters into force under Section I of this Article.
(c) The Government of the United States of America shall inform the governments of all
countries whose names are set forth in Schedule A, and all governments whose membership is
approved in accordance with Article II Section 2, of all signatures of this Agreement and of the
deposit of all instruments referred to in (a) above.
(d) At the time this Agreement is signed on its behalf, each government shall transmit to the
Government of the United States of America one one- hundredth of one percent of its total
subscription in gold or United States dollars for the purpose of meeting administrative expenses
of the Fund. The Government of the United States of America shall hold such funds in a special
deposit account and shall transmit them to the Board of Governors of the Fund when the initial
meeting has been called under Section 3 of this Article. If this Agreement has not come into
force by December 31, 1945, the Government of the United States of America shall return such
funds to the governments that transmitted them.
(e) This Agreement shall remain open for signature at Washington on behalf of the
governments of the countries whose names are set forth in Schedule A until December 31, 1945.

(f) After December 31, 1945, this Agreement shall be open for signature on behalf of the
government of any country whose membership has been approved in accordance with Article II,
Section 2.
(g) By their signature of this Agreement, all governments accept it both on their own behalf
and in respect of all their colonies, overseas territories, all territories under their protection,
suzerainty, or authority and all territories in respect of which they exercise a mandate.
(h) In the case of governments whose metropolitan territories have been under enemy
occupation, the deposit of the instrument referred to in (a) above may be delayed until one
hundred eighty days after the date on which these territories have been liberated. If, however, it
is not deposited by any such government before the expiration of this period the signature affixed
on behalf of that government shall become void and the portion of its subscription paid under (d)
above shall be returned to it.
(i) Paragraphs (d) and (h) shall come into force with regard to each signatory government as
from the date of its signature.
SECTION 3: INAUGURATION OF THE FUND
(a) As soon as this Agreement enters into force under Section 1 of this Article, each member
shall appoint a governor and the member having the largest quota shall call the first meeting of
the Board of Governors.
(b) At the first meeting of the Board of Governors, arrangements shall be made for the
selection of provisional executive directors. The governments of the five countries for which the
largest quotas are set forth in Schedule A shall appoint provisional executive directors. If one or
more of such governments have not become members, the executive directorships they would be
entitled to fill shall remain vacant until they become members, or until January 1, 1946,
whichever is the earlier. Seven provisional executive directors shall be elected in accordance
with the provisions of Schedule C and shall remain in office until the date of the first regular
election of executive directors which shall be held as soon as practicable after January 1, 1946.
(c) The Board of Governors may delegate to the provisional executive directors any powers
except those which may not be delegated to the Executive Directors.
SECTION 4. INITIAL DETERMINATION OF PAR VALUES
(a) When the Fund is of the opinion that it will shortly be in a position to begin exchange
transactions, it shall so notify the members and shall request each member to communicate
within thirty days the par value of its currency based on the rates of exchange prevailing on the
sixtieth day before the entry into force of this Agreement. No member whose metropolitan
territory has been occupied by the enemy shall be required to make such a communication while
that territory is a theater of major hostilities or for such period thereafter as the Fund may

determine. When such a member communicates the par value of its currency the provisions of
(d) below shall apply.
(b) The par value communicated by a member whose metropolitan territory has not been
occupied by the enemy shall be the par value of that member's currency for the purposes of this
Agreement unless, within ninety days after the request referred to in (a) above has been received,
(i) the member notifies the Fund that it regards the par value as unsatisfactory, or (ii) the Fund
notifies the member that in its opinion the par value cannot be maintained without causing
recourse to the Fund on the part of that member or others on a scale prejudicial to the Fund and
to members. When notification is given under (i) or (ii) above, the Fund and the member shall,
within a period determined by the Fund in the light of all relevant circumstances, agree upon a
suitable par value for that currency. If the Fund and the member do not agree within the period
so determined, the member shall be deemed to have withdrawn from the Fund on the date when
the period expires.
(c) When the par value of a member's currency has been established under (b) above, either
by the expiration of ninety days without notification, or by agreement after notification, the
member shall be eligible to buy from the Fund the currencies of other members to the full extent
permitted in this Agreement, provided that the Fund has begun exchange transactions.
(d) In the case of a member whose metropolitan territory has been occupied by the enemy, the
provisions of (b) above shall apply,. subject to the following modifications:
(i) The period of ninety days shall be extended so as to end on a date to be fixed by
agreement between the Fund and the member.
(ii) Within the extended period the member may, if the Fund has begun exchange
transactions, buy from the Fund with its currency the currencies of other members, but only
under such conditions and. in such amounts as may be prescribed by the Fund.
(iii) At any time before the date fixed under (i) above, changes may be made by agreement
with the Fund in the par value communicated under (a) above.
(e) If a member whose metropolitan territory has been occupied by the enemy adopts a new
monetary unit before the date to be fixed under (d) (i) above, the par value fixed by that member
for the new unit shall be communicated to the Fund and the provisions of (d) above shall apply.
(f) Changes in par values agreed with the Fund under this Section shall not be taken into
account in determining whether a proposed change falls within (i), (ii), or (iii) of Article IV,
Section 5 (c).
(g) A member communicating to the Fund a par value for the currency of its metropolitan
territory shall simultaneously communicate a value, in terms of that currency, for each separate
currency, where such exists, in the territories in respect of which it has accepted this Agreement

under Section 2 (g) of this Article, but no member shall be required to make a communication for
the separate currency of a territory which has been occupied by the enemy while that territory is
a theater of major hostilities or for such period thereafter as the Fund may determine. On the
basis of the par value so communicated, the Fund shall compute the par value of each separate
currenc y. A communication or notification to the Fund under (a), (b) or (d) above regarding the
par value of a currency, shall also be deemed, unless the contrary is stated. to be a
communication or notification regarding the par value of all the separate currenc ies referred to
above. Any member may, however, make a communication or notification relating to, the
metropolitan or any of the separate currencies alone. If the member does so, the provisions of the
preceding paragraphs (including (d) above, if a territory where a separate currency exists has
been occupied by the enemy) shall apply to each of these currencies separately.
(h) The Fund shall begin exchange transactions at such date as it may determine after
members having sixty- five percent of the total of the quotas set forth in Schedule A have become
eligible, in accordance with the preceding paragraphs of this Section, to purchase the currencies
of other members, but in no event until after major hostilities in Europe have ceased.
(i) The Fund may postpone exchange transactions with any member if its circumstances are
such that, in the opinion of the Fund, they would lead to use of the resources of the Fund in a
manner contrary to the purposes of this Agreement or prejudicial to the Fund or the members.
(j) The par values of the currencies of governments which indicate their desire to become
members after December 31, 1945, shall be determined in accordance with the provisions of
Article II, Section 2.
DONE at Washington, in a single copy which shall remain deposited in the archives of the
Government of the United States of America, which shall transmit certified copies to all
governments whose names are set forth in Schedule A and to all governments whose
membership is approved in accordance with Article II, Section 2.

SCHEDULE A
QUOTAS
(In millions of United
States dollars)
Australia .................................200
Belgium ..................................225
Bolivia ....................................10
Brazil ......................................150
Canada....................................300
Chile .......................................50
China ......................................550
Colombia ................................50
Costa Rica ..............................5
Cuba .......................................50
Czechoslovakia ......................125
Denmark.................................*
Dominican Republic ..............5
Ecuador ..................................5
Egypt .....................................45
El Salvador .............................2.5
Ethiopia ..................................6
France.....................................450
Greece ....................................40
Guatemala ..............................5
Haiti........................................5
Honduras ................................2.5
Iceland ....................................1

(In millions of United
States dollars)
India .............................................400
Iran...............................................25
Iraq ...............................................8
Liberia ..........................................5
Luxembourg.................................10
Mexico .........................................90
Netherlands ..................................275
New Zealand ................................50
Nicaragua .....................................2
Norway.........................................50
Panama ..........................................5
Paraguay.......................................2
Peru ..............................................25
Philippine Commonwealth...........15
Poland...........................................125
Union of South Africa..................100
Union of Soviet Socialist
Republics................................1200
United Kingdom...........................1300
United States ................................2750
Uruguay........................................15
Venezuela.....................................15
Yugoslavia ...................................60

*The quota of Denmark shall be determined by the Fund after the Danish Government has
declared its readiness to sign this Agreement but before signature takes place.
SCHEDULE B
PROVISIONS WITH RESPECT TO REPURCHASE BY A MEMBER OF ITS
CURRENCY HELD BY THE FUND
1. In determining the extent to which repurchase of a member's currency from the Fund under
Article V, Section 7 (b) shall be made with each type of monetary reserve, that is, with gold and
with each convertible currency, the following rule, subject to 2 below, shall apply:
(a) If the member's monetary reserves have not increased during the year, the amount payable
to the Fund shall be distributed among all types of reserves in proportion to the member's
holdings thereof at the end of the year.
(b) If the member's monetary reserves have increased during the year, a part of the amount
payable to the Fund equal to one-half of the increase shall be distributed among those types of

reserves which have increased in proportion to the amount by which each of them has increased.
The remainder of the sum payable to the Fund shall be distributed among all types of reserves in
proportion to the member's remaining holdings thereof.
(c) If after all the repurchases required under Article V, Section 7 (b), had been made, the
result would exceed any of the limits specified in Article V, Section 7 (c), the Fund shall require
such repurchases to be made by the members proportionately in such manner that the limits will
not be exceeded.
2. The Fund shall not acquire the currency of any non-member under Article V, Section 7 (b)
and (c).
3. In calculating monetary reserves and the increase in monetary reserves during any year for
the purpose of Article V, Section 7 (b) and (c), no account shall be taken, unless deductions have
otherwise been made by the member for such ho ldings, of any increase in those monetary
reserves which is due to currency previously inconvertible having become convertible during the
year; or to holdings which are the proceeds of a long-term or medium-term loan contracted
during the year; or to holdings which have been transferred or set aside for repayment of a loan
during the subsequent year.
4. In the case of members whose metropolitan territories have been occupied by the enemy,
gold newly produced during the five years after the entry into force of this Agreement from
mines located within their metropolitan territories shall not be included in computations of their
monetary reserves or of increases in their monetary reserves.
SCHEDULE C
ELECTION OF EXECUTIVE DIRECTORS
1. The election of the elective executive directors shall be by ballot of the governors eligible
to vote under Article XII, Section 3 (b) (iii) and (iv).
2. In balloting for the five directors to be elected under Article XII, Section 3 (b) (iii), each of
the governors eligible to vote shall cast for one person all of the votes to which he is entitled
under Article XII, Section 5 (a). The five persons receiving the greatest number of votes shall be
directors, provided that no person who received less than nineteen percent of the total number of
votes that can be cast (eligible votes) shall be considered elected.
3. When five persons are not elected in the first ballot, a second ballot shall be held in which
the person who received the lowest number of votes shall be ineligible for election and in which
there shall vote only (a) those governors who voted in the first ballot for a person not elected,
and (b) those governors whose votes for a person elected are deemed under 4 below to have
raised the votes cast for that person above twenty percent of the eligible votes.

4. In determining whether the votes cast by a governor are to be deemed to have raised the
total of any person above twenty percent of the eligible votes the twenty percent shall be deemed
to include, first, the votes of the governor casting the largest number of votes for such person,
then the votes of the governor casting the next largest number, and so on until twenty percent is
reached.
5. Any governor part of whose votes must be counted in order to raise the total of any person
above nineteen percent shall be considered as casting all of his votes for such person even if the
total votes for such person thereby exceed twenty percent.
6. If, after the second ballot, five persons have not been elected, further ballots shall be held
on the same principles until five persons have been elected, provided that after four persons are
elected, the fifth may be elected by a simple majority of the remaining votes and shall be deemed
to have been elected by all such votes.
7. The directors to be elected by the American Republics under Article XII, Section 3 (b) (iv)
shall be elected as follows:
(a) Each of the directors shall be elected separately.
(b) In the election of the first director, each governor representing an American Republic
eligible to participate in the election shall cast for one person all the votes to which he is entitled.
The person receiving the largest number of votes shall be elected provided that he has received
not less than forty- five percent of the total votes.
(c) If no person is elected on the first ballot, further ballots shall be held, in each of which the
person receiving the lowest number of votes shall be eliminated, until one person receives a
number of votes sufficient for election under (b) above.
(d) Governors whose votes contributed to the election of the first director shall take no part in
the election of the second director.
(e) Persons who did not succeed in the first election shall not be ineligible for election as the
second director.
(f) A majority of the votes which can be cast shall be required for election of the second
director. If at the first ballot no person receives a majority, further ballots shall be held in each of
which the person receiving the lowest number of votes sha ll be eliminated, until some person
obtains a majority.
(g) The second director shall be deemed to have been elected by all the votes which could
have been cast in the ballot securing his election.

SCHEDULE D
SETTLEMENT OF ACCOUNTS WITH MEMBERS WITHDRAWING
1. The Fund shall be obligated to pay to a member withdrawing an amount equal to its quota,
plus any other amounts due to it from the Fund, less any amounts due to the Fund, including
charges accruing after the date of its withdrawal; but no payment shall be made until six months
after the date of withdrawal. Payments shall be made in the currency of the withdrawing
member.
2. If the Fund's holdings of the currency of the withdrawing member are not sufficient to pay
the net amount due from the Fund, the balance shall be paid in gold, or in such other manner as
may be agreed. If the Fund and the withdrawing member do not reach agreement within six
months of the date of withdrawal, the currency in question held by the Fund shall be paid
forthwith to the withdrawing member. Any balance due shall be paid in ten half- yearly
installments during the ensuing five years. Each such installment shall be paid, at the option of
the Fund, either in the currency of the withdrawing member acquired after its withdrawal or by
the delivery of gold.
3. If the Fund fails to meet any installment which is due in accordance with the preceding
paragraphs, the withdrawing member shall be entitled to require the Fund to pay the installment
in any currency held by the Fund with the exception of any currency which has been declared
scarce under Article VII, Section 3.
4. If the Fund's holdings of the currency of a withdrawing member exceed the amount due to
it, and if agreement on the method of settling accounts is not reached within six months of the
date of withdrawal, the former member shall be obligated to redeem such excess currency in gold
or, at its option, in the currencies of members which at the time of redemption are convertible.
Redemption shall be made at the parity existing at the time of withdrawal from the Fund. The
withdrawing member shall complete redemption within five years of the date of withdrawal, or
within such longer period as may be fixed by the Fund, but shall not be required to redeem in any
half- yearly period more than one-tenth of the Fund's excess holdings of its currency at the date of
withdrawal plus further acquisitions of the currency during such half- yearly period. If the
withdrawing member does not fulfill this obligation, the Fund may in an orderly manner
liquidate in any market the amount of currency which should have been redeemed.
5. Any member desiring to obtain the currency of a member which has withdrawn shall
acquire it by purchase from the Fund, to the extend that such member has access to the resources
of the Fund and that such currency is available under 4 above.
6. The withdrawing member guarantees the unrestricted use at all times of the currency
disposed of under 4 and 5 above for the purchase of goods or for payment of sums due to it or to
persons within its territories. It shall compensate the Fund for any loss resulting from the

difference between the par value of its currency on the date of withdrawal and the value realized
by the Fund on disposal under 4 and 5 above.
7. In the event of the Fund going into liquidation under Article XVI, Section 2, within six
months of the date on which the member withdraws, the account between the Fund and that
government shall be settled in accordance with Article XVI, Section 2, and Schedule E.
SCHEDULE E
ADMINISTRATION OF LIQUIDATION
1. In the event of liquidation the liabilities of the Fund other than the repayment of
subscriptions shall have priority in the distribution of the assets of the Fund. In meeting each
such liability the Fund shall use its assets in the following order:
(a) the currency in which the liability is payable;
(b) gold;
(c) all other currencies in proportion, so far as may be practicable, to the quotas of the
members.
2. After the discharge of the Fund's liabilities in accordance with 1 above, the balance of the
Fund's assets shall be distributed and apportioned as follows:
(a) The Fund shall distribute its holdings of gold among the members whose currencies are
held by the Fund in amounts less than their quotas. These members shall share the gold so
distributed in the proportions of the amounts by which their quotas exceed the Fund's holdings of
their currencies.
(b) The Fund shall distribute to each member one-half the Fund's holdings of its currency but
such distribution shall not exceed fifty percent of its quota.
(c) The Fund shall apportion the remainder of its holdings of each currency among all the
members in proportion to the amounts due to each member after the distributions under (a) and
(b) above.
3. Each member shall redeem the holdings of its currency apportioned to other members
under 2 (c) above, and shall agree with the Fund within three months after a decision to liquidate
upon an orderly procedure for such redemption.
4. If a member has not reached agreement with the Fund within the three- month period
referred to in 3 above, the Fund shall use the currencies of other members apportioned to that
member under 2 (c) above to redeem the currency of that member apportioned to other members.
Each currency apportioned to a member which has not reached agreement shall be used, so far as

possible, to redeem its currency apportioned to the members which have made agreements with
the Fund under 3 above.
5. If a member has reached agreement with the Fund in accordance with 3 above, the Fund
shall use the currencies of other members apportioned to that member under 2 (c) above to
redeem the currency of that member apportioned to other members which have made agreements
with the Fund under 3 above. Each amount so redeemed shall be redeemed in the currency of the
member to which it was apportioned.
6. After carrying out the preceding paragraphs, the Fund shall pay to each member the
remaining currencies held for its account.
7. Each member whose currency has been distributed to other members under 6 above shall
redeem such currency in gold or, at its option, in the currency of the member requesting
redemption, or in such other manner as may be agreed between them. If the members involved
do not otherwise agree, the member obligated to redeem shall complete redemption within five
years of the date of distribution, but shall not be required to redeem in any half- yearly period
more than one-tenth of the amount distributed to each other member. If the member does not
fulfill this obligation, the amount of currency which should have been redeemed may be
liquidated in an orderly manner in any market.
8. Each member whose currency has been distributed to other members under 6 above
guarantees the unrestricted use of such currency at all times for the purchase of goods or for
payment of sums due to it or to persons in its territories. Each member so obligated agrees to
compensate other members for any loss resulting from the difference between the par value of its
currency on the date of the decision to liquidate the Fund and the value realized by such
members on disposal of its currency.
(c) Bretton Woods Agreements Act, July 31, 1945
AN ACT To provide for the participation of the United States in the International
Monetary Fund and the International Bank for Reconstruction and Development
Be it enacted by the Senate and House of Representatives of the United States of America in
Congress assembled,
SHORT TITLE
SECTION 1.
This Act may be cited as the "Bretton Woods Agreements Act".

ACCEPTANCE OF MEMBERSHIP
SEC. 2.
The President is hereby authorized to accept membership for the United States in the
International Monetary Fund (hereinafter referred to as the "Fund"), and in the International
Bank for Reconstruction and Development (hereinafter referred to as the "Bank"), provided for
by the Articles of Agreement of the Fund and the Articles of Agreement of the Bank as set forth
in the Fina l Act of the United Nations Monetary and Financial Conference dated July 22, 1944,
and deposited in the archives of the Department of State.
APPOINTMENT OF GOVERNORS, EXECUTIVE DIRECTORS, AND ALTERNATES
SEC. 3. (a)
The President, by and with the advice and consent of the Senate, shall appoint a governor of
the Fund who shall also serve as a governor of the Bank, and an executive director of the Fund
and an executive director of the Bank. The executive directors so appointed shall also serve as
provisional executive directors of the Fund and the Bank for the purposes of the respective
Articles of Agreement. The term of office for the governor of the Fund and of the Bank shall be
five years. The term of office for the executive directors shall be two years, but the executive
directors shall remain in office until their successors have been appointed.
(b) The President, by and with the advice and consent of the Senate, shall appoint an alternate
for the governor of the Fund who shall also serve as alternate for the governor of the Bank. The
President, by and with the advice and consent of the Senate, shall appoint an alternate for each of
the executive directors. The alternate for each executive director shall be appointed from among
individuals recommended to the President by the executive director. The terms of office for
alternates for the governor and the executive directors shall be the same as the terms specified in
subsection (a) for the governor and executive directors.
(c) No person shall be entitled to receive any salary or other compensation from the United
States for services as a governor, executive director, or alternate.
NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND
FINANCIAL PROBLEMS
SEC. 4.
(a) In order to coordinate the policies and operations of the representatives of the United
States on the Fund and the Bank and of all agencies of the Government which make or
participate in making foreign loans or which engage in foreign financial, exchange or monetary
transactions, there is he reby established the National Advisory Council on International
Monetary and Financial Problems (hereinafter referred to as the "Council"), consisting of the
Secretary of the Treasury, as Chairman, the Secretary of State, the Secretary of Commerce, the

Chairman of the Board of Governors of the Federal Reserve System, and the Chairman of the
Board of Trustees of the Export-Import Bank of Washington.
(b) (1) The Council, after consultation with the representatives of the United States on the
Fund and the Bank, shall recommend to the President general policy directives for the guidance
of the representatives of the United States on the Fund and the Bank.
(2) The Council shall advise and consult with the President and the representatives of the
United States on the Fund and the Bank on major problems arising in the administration of the
Fund and the Bank.
(3) The Council shall coordinate, by consultation or otherwise, so far as is practicable, the
policies and operations of the representatives of the United States on the Fund and the Bank, the
Export-Import Bank of Washington and all other agencies of the Government to the extent that
they make or participate in the making of foreign loans or engage in foreign financial, exchange
or monetary transactions.
(4) Whenever, under the Articles of Agreement of the Fund or the Articles of Agreement of
the Bank, the approval, consent or agreement of the United States is required before an act may
be done by the respective institutions, the decision as to whether such approval, consent, or
agreement, shall be given or refused shall (to the extent such decision is not prohibited by section
5 of this Act) be made by the Council, under the general direction of the President. No governor,
executive director, or alternate representing the United States shall vote in favor of any waiver of
condition under article V, section 4, or in favor of any declaration of the United States dollar as a
scarce currency under article VII, section 3, of the Articles of Agreement of the Fund, without
prior approval of the Council.
(5) The Council from time to time, but not less frequently than every six months, shall
transmit to the President and to the Congress a report with respect to the participation of the
United States in the Fund and the Bank.
(6) The Council shall also transmit to the President and to the Congress special reports on the
operations and policies of the Fund and the Bank, as provided in this paragraph. The first report
shall be made not later than two years after the establishment of the Fund and the Bank, and a
report shall be made every two years after the making of the first report. Each such report shall
cover and include: The extent to which the Fund and the Bank have achieved the purposes for
which they were established; the extent to which the operations and policies of the Fund and the
Bank have adhered to, or departed from, the general policy directives formulated by the Council,
and the Council's recommendations in connection therewith; the extent to which the operations
and policies of the Fund and the Bank have been coordinated, and the Council's
recommendations in connection therewith; recommendations on whether the resources of the
Fund and the Bank should be increased or decreased; recommendations as to how the Fund and
the Bank may be made more effective; recommendations on any other necessary or desirable
changes in the Articles of Agreement of the Fund and of the Bank or in this Act; and an over-all

appraisal of the extent to which the operations and policies of the Fund and the Bank have
served, and in the future may be expected to serve, the interests of the United States and the
world in promoting sound international economic cooperation and furthering world security.
(7) The Council shall make such reports and recommendations to the President as he may
from time to time request, or as the Council may consider necessary to more effectively or
efficiently accomplish the purposes of this Act or the purposes for which the Council is created.
(c) The representatives of the United States on the Fund and the Bank, and the Export-Import
Bank of Washington (and all other agencies of the Government to the extent that they make or
participate in the making of foreign loans or engage in foreign financial, exchange or monetary
transactions) shall keep the Council fully informed of their activities and shall provide the
Council with such further information or data in their possession as the Council may deem
necessary to the appropriate discharge of its responsibilities under this Act.
CERTAIN ACTS NOT TO BE TAKEN WITHOUT AUTHORIZATION
SEC. 5.
Unless Congress by law authorizes such action, neither the President nor any person or
agency shall on behalf of the United States (a) request or consent to any change in the quota of
the United States under article III, section 2, of the Articles of Agreement of the Fund; (b)
propose or agree to any change in the par value of the United States dollar under article IV,
section 5, or article XX, section 4, of the Articles of Agreement of the Fund, or approve any
general change in par values under article IV, section 7; (e) subscribe to additional shares of
stock under article II, section 3, of the Articles of Agreement of the Bank; (d) accept any
amendment under article XVII of the Articles of Agreement of the Fund or article VIII of the
Articles of Agreement of the Bank; (e) make any loan to the Fund or the Bank. Unless Congress
by law authorizes such action, no governor or alternate appointed to represent the United States
shall vote for an increase of capital stock of the Bank under article II, section 2, of the Articles of
Agreement of the Bank.
DEPOSITORIES
SEC. 6.
Any Federal Reserve bank which is requested to do so by the Fund or the Bank shall act as its
depository or as its fiscal agent, and the Board of Governors of the Federal Reserve System shall
supervise and direct the carrying out of these functions by the Federal Reserve banks.

PAYMENT OF SUBSCRIPTIONS
SEC. 7.
(a) Subsection (c) of section 10 of the Gold Reserve Act of 1934, as amended (U. S. C., title
31, see. 822a), is amended to read as follows:
"(c) The Secretary of the Treasury is directed to use $1,800,000,000 of the fund established in
this section to pay part of the subscription of the United States to the International Monetary
Fund; and any repayment thereof shall be covered into the Treasury as a miscellaneous receipt."
(b) The Secretary of the Treasury is authorized to pay the balance of $950,000,000 of the
subscription of the United States to the Fund not provided for in subsection (a) and to pay the
subscription of the United States to the Bank from time to time when payments are required to be
made to the Bank. For the purpose of making these payments, the Secretary of the Treasury is
authorized to use as a public-debt transaction not to exceed $4,125,000,000 of the proceeds of
any securities hereafter issued under the Second Liberty Bond Act, as amended, and the purposes
for which securities may be issued under that Act are extended to include such purpose. Payment
under this subsection of the subscription of the United States to the Fund or the Bank and
repayments thereof shall be treated as public-debt transactions of the United States.
(c) For the purpose of keeping to a minimum the cost to the United States of participation in
the Fund and the Bank, the Secretary of the Treasury, after paying the subscription of the United
States to the Fund, and any part of the subscription of the United States to the Bank required to
be made under article II, section 7 (i), of the Articles of Agreement, of the Bank, is authorized
and directed to issue special notes of the United States from time to time at par and to deliver
such notes to the Fund and the Bank in exchange for dollars to the extent permitted by the
respective Articles of Agreement. The special notes provided for in this subsection shall be
issued under the authority and subject to the provisions of the Second Liberty Bond Act, as
amended, and the purposes for which securities may be issued under tha t Act are extended to
include the purposes for which special notes are authorized and directed to be issued under this
subsection, but such notes shall bear no interest, shall be nonnegotiable, and shall be payable on
demand of the Fund or the Bank, as the case may be. The face amount of special notes issued to
the Fund under the authority of this subsection and outstanding at any one time shall not exceed
in the aggregate the amount of the subscription of the United States actually paid to the Fund,
and the face amount of such notes issued to the Bank and outstanding at any one time shall not
exceed in the aggregate the amount of the subscription of the United States actually paid to the
Bank under article II, section 7 (i), of the Articles of Agreement of the Bank.
(d) Any payment made to the United States by the Fund or the Bank as a distribution of net
income shall be covered into the Treasury as a miscellaneous receipt.

OBTAINING AND FURNISHING INFORMATION
SEC. 8.
(a) Whenever a request is made by the Fund to the United States as a member to furnish data
under article VIII, section 5, of the Articles of Agreement of the Fund, the President may,
through any agency he may designate, require any person to furnish such information as the
President may determine to be essential to comply with such request. In making such
determination the President shall seek to collect the information only in such detail as is
necessary to comply with the request of the Fund. No information so acquired shall be furnished
to the Fund in such detail that the affairs of any person are disclosed.
(b) In the event any person refuses to furnish such information when requested to do so, the
President, through any designated governmental agency, may by subpoena require such person to
appear and testify or to appear and produce records and other documents, or both. In case of
contumacy by, or refusal to obey a subpoena served upon any such person, the district court for
any district in which such person is found or resides or transacts business, upon application by
the President or any governmental agency designated by him, shall have jurisdiction to issue an
order requiring such person to appear and give testimony or appear and produce records and
documents, or both; and any failure to obey such order of the court may be punished by such
court as a contempt thereof.
(c) It shall be unlawful for any officer or employee of the Government, or for any advisor or
consultant to the Government, to disclose, otherwise than in the course of official duty, any
information obtained under this section, or to use any such information for his personal benefit.
Whoever violates any of the provisions of this subsection shall, upon conviction, be fined not
more than $5,000, or imprisoned for not more than five years, or both.
(d) The term "person" as used in this section means an individual, partnership, corporation or
association.
FINANCIAL TRANSACTIONS WITH FOREIGN GOVERNMENTS IN DEFAULT
SEC. 9.
The Act entitled "An Act to prohibit financial transactions with any foreign government in
default on its obligations to the United States", approved April 13, 1934 (U. S. C., title 31, see.
804a), is amended by adding at the end thereof a new section to read as follows:
"SEC. 3. While any foreign government is a member both of the International Monetary Fund
and of the International Bank for Reconstruction and Development, this Act shall not apply to
the sale or purchase of bonds, securities, or other obligations of such government or any political
subdivision thereof or of any organization or association acting for or on behalf of such
government or political subdivision, or to the making of any loan to such government, political
subdivision, organization, or association."

JURISDICTION AND VENUE OF ACTIONS
SEC. 10.
For the purpose of any action which may be brought within the United States or its Territories
or possessions by or against the Fund or the Bank in accordance with the Articles of Agreement
of the Fund or the Articles of Agreement of the Bank, the Fund or the Bank, as the case may be,
shall be deemed to be an inhabitant of the Federal judicial district in which its principal office in
the United States is located, and any such action at law or in equity to which either the Fund or
the Bank shall be a party shall be deemed to arise under the laws of the United States, and the
district courts of the United States shall have original jurisdiction of any such action. When
either the Fund or the Bank is a defendant in any such action, it may, at any time before the trial
thereof, remove such action from a State court into the district court of the United States for the
proper district by following the procedure for removal of causes otherwise provided by law.
STATUS, IMMUNITIES AND PRIVILEGES
SEC. 11.
The provisions of article IX, sections 2 to 9, both inclusive, and the first sentence of article
VIII, section 2 (b), of the Articles of Agreement of the Fund, and the provisions of article VI,
section 5 (i), and article VII, sections 2 to 9, both inclusive, of the Articles of Agreement of the
Bank, shall have full force and effect in the United States and its Territories and possessions
upon acceptance of membership by the United States in, and the establishment of, the Fund and
the Bank, respectively.
STABILIZATION LOANS BY THE BANK
SEC. 12.
The governor and executive director of the Bank appointed by the United States are hereby
directed to obtain promptly an official interpretation by the Bank as to its authority to make or
guarantee loans for programs of economic reconstruction and the reconstruction of monetary
systems, including long-term stabilization loans. If the Bank does not interpret its powers to
include the making or guaranteeing of such loans, the governor of the Bank representing the
United States is hereby directed to propose promptly and support an amendment to the Articles
of Agreement for the purpose of explicitly authorizing the Bank, after consultation with the
Fund, to make or guarantee such loans. The President is hereby authorized and directed to accept
an amendment to that effect on behalf of the United States.

STABILIZATION OPERATION BY THE FUND
SEC. 13.
(a) The governor and executive director of the Fund appointed by the United States are
hereby directed to obtain promptly an official interpretation by the Fund as to whether its
authority to use its resources extends beyond current monetary stabilization operations to afford
temporary assistance to members in connection with seasonal, cyclical, and emergency
fluctuations in the balance of payments of any member for current transactions, and whether it
has authority to use its resources to provide facilities for relief, reconstruction, or armaments, or
to meet a large or sustained outflow of capital on the part of any member.
(b) If the interpretation by the Fund answers in the affirmative any of the questions stated in
subsection (a), the governor of the Fund representing the United States is hereby directed to
propose promptly and support an amendment to the Articles of Agreement for the purpose of
expressly negativing such interpretation. The President is hereby authorized and directed to
accept an amendment to that effect on behalf of the United States.
FURTHER PROMOTION OF INTERNATIONAL ECONOMIC RELATIONS
SEC. 14.
In the realization that additional measures of international economic cooperation are
necessary to facilitate the expansion and balanced growth of international trade and render most
effective the operations of the Fund and the Bank, it is hereby declared to be the policy of the
United States to seek to bring about further agreement and cooperation among nations and
international bodies, as soon as possible, on ways and means which will best reduce obstacles to
and restrictions upon international trade, eliminate unfair trade practices, promote mutually
advantageous commercial relations, and otherwise facilitate the expansion and balanced growth
of international trade and promote the stability of international economic relations. In
considering the policies of the United States in foreign lending and the policies of the Fund and
the Bank, particularly in conducting exchange transactions, the Council and the United States
representatives on the Fund and the Bank shall give careful consideration to the progress which
has been made in achieving such agreement and cooperation.
Approved July 31, 1945.
1 United Nations Monetary and Financial Conference, Bretton Woods, New Hampshire, July
1-22,1944 Final Act and Related Documents, pp. 68-95, Department of State publication 2187,
Conference Series 55; also, Department of State publication 2511, Treaties and Other
International Acts Series 1502. Agreement signed at Washington December 27, 1945; effective
December 27, 1945. Public Law 171, 79th Cong., lst sess., H. R. 3314: An Act ("Bretton Woods
Agreements Act") to provide for participation of the United States in the International Monetary
Fund and the International Bank for Reconstruction and Development was approved July 31,

1945. Agreement establishing official relationship between the Bank and the United Nations was
approved by the General Assembly November 15,1947.
2 United Nations Monetary and Financial Conference, Bretton Woods, New Hampshire, July
1-22, 1944: Final Act and Related Documents. pp. 28-65, Department of State publication 2187,
Conference Series 55; also, Department of State publication 2512, Treaties and Other
International Acts Series 1501. Agreement signed at Washington Dec. 27, 1945; effective Dec.
27, 1945. Public Law 171, 79th Cong., 1st sess., H. R. 3314: An Act ("Bretton Woods
Agreements Act") to provide for participation of the United States in the International Monetary
Fund and the International Bank for Reconstruction and Development was approved July 31,
1945. Agreement establishing officia l relationship between the Fund and the United Nations was
approved by the General Assembly Nov. 15, 1947.
3 Public Law 171, 79th Cong., 1st sess., H. R. 3114.