The Royal Netherlands Government and the Government of the United Kingdom of Great Britain and Northern Ireland, considering that it is in their common interest to establish and maintain an official rate of exchange between the Netherlands Indies guilder and the pound sterling, have agreed as follows.
Article 1
The official rate of exchange between the Netherlands Indies guilder (as defined in Article 12 and hereinafter referred to as the guilder) and the pound sterling shall be 7.60 guilders to the pound based on the last officially quoted rate in London for the guilder.
No change in such rate will be made without prior agreement between the two contracting Governments.
Article 2
The contracting Governments will be solely responsible as regards the quotation of their respective currencies in markets of third countries. But they will always consult together on the policy to be followed in regard to this question and on any intervention which may seem necessary.
Article 3
The Bank of England and the Javasche Bank will sell to one another sterling for guilders and guilders for sterling at the official rate.
Article 4
(1) No limit will be fixed to the amounts of sterling or guilders to be purchased in accordance with the preceding Article.
(2) If the Javasche Bank should at any time hold sterling, in excess of £ 5 millions, the excess shall be applied to the purchase of United Kingdom Treasury Bills, to be denominated in guilders, calculated at the official rate of the day of purchase, and to be issued in amounts of guilders equivalent to £ 50,000 or multiples thereof.
