58
United Nations—Treaty Series
1947
- (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 per cent. of its quota, or
- (III) the Fund's holdings of any currency required to be used are above seventy-five per cent. 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 per cent. in addition to the parity price. The Fund in its discretion may increase this service charge to not more than one per cent. or reduce it to not less than one-half per cent.
(b) The Fund may levy a reasonable handling charge on any member buying gold from the Fund or selling gold to the Fund.
