United Nations Treaty Series/Volume 2/1/19
No. 19
NETHERLANDS AND SWEDEN
Monetary Agreement. Signed at Stockholm, on 30 November 1945. Came into force an 30 November 1945, by signature.
English official text communicated by the Minister for Foreign Affairs of the Netherlands. The registration took place on 25 April 1947.
The Netherlands Government and the Swedish Government have agreed as follows:
Article 1
The rate of exchange between the Swedish krona and the Netherlands guilder shall be Swedish kronor 158,0769–Netherlands guilders 100.
This rate (hereinafter referred to as "the official rate") shall not be varied by either of the Contracting Governments except after giving to the other as much notice as may be practicable.
In all territories where they have jurisdiction the Contracting Governments shall enforce the use of the official rate as the basis of all transactions involving a relationship between the two currencies.
Sveriges Riksbank and De Nederlandsche Bank, as agents of their respective Governments, shall fix by mutual agreement the maximum spread above or below the official rate which will be authorised on the markets which they control.
Article 2
Sveriges Riksbank (acting as agents of the Swedish Government) shall, up to a total amount of Sw. Kr. 31.620.000, sell to De Nederlandsche Bank (acting as agents of the Netherlands Government) against Netherlands guilders to be credited at the official rate to Sveriges Riksbank's No. 1 Account with De Nederlandsche Bank such Swedish Kronor as may be required for payments, which residents of the Netherlands monetary area, under the exchange regulations in force in that area, are permitted to make to residents of Sweden.
De Nederlandsche Bank (acting as agents of the Netherlands Government) shall, up to a total amount of Netherlands guilders 20.000.000, sell to the Sveriges Riksbank (acting as agents of the Swedish Government) against Swedish Kronor to be credited at the official rate to Dc Nederlandsche Bank's No. 1 Account with the Sverigs Riksbank such Netherlands guilders as may be required for payments, which residents of Sweden, under the exchange regulations in force in Sweden, are permitted to make to residents of the Netherlands monetary area.
Article 3
Sveriges Riksbank shall have the right at any time to sell to De Nederlandsche Bank against all or part of the Swedish Kronor balances held by that Bank either Netherlands guilders at the official rate or gold to be aside at the Sveriges Riksbank in Stockholm.
De Nederlandsche Bank shall have the right at any time to sell to Sveriges Riksbank against all or part of the Netherlands guilders balances held by that Bank either Swedish kronor at the official rate or gold to be set aside at De Nederlandsche Bank in Amsterdam.
Gold set aside in Stockholm in accordance with the provisions of this Article shall be at De Nederlandsche Bank's free disposal and may be exported.
Gold set aside in Amsterdam in accordance with the provisions of this Article shall be at Sveriges Riksbank's free disposal and may be exported.
Article 4
Amounts in excess of one third of the amount in Netherlands guilders mentioned in Article 2 standing to the credit of Sverigs Riksbank's No. 1 Account with De Nederlandsche Bank and amounts in excess of one third of the amount in Swedish kronor mentioned in the same article standing to the credit of De Nederlandsche Bank's No. 1 Account with Sveriges Riksbank shall bear interest at a rate of two (2) per cent per annum to be paid half-yearly, on the 30th June and 1he 31st December.
Article 5
The Swedish Government shall not restrict the availability of Swedish kronor at the disposal of residents of the Netherlands monetary area for making:
a) transfers to other residents of the Netherlands monetary area;
b) payments to residents of Sweden; or
c) transfers to residents of countries outside the Netherlands monetary area and Sweden to the extent to which these may be authorised by the Swedish Government under the arrangements contemplated in Article 8 (iii). The Netherlands Government shall not restrict the availability of guilders at the disposal of residents of Sweden for making— a) transfers to other residents of Sweden;
b) payments to residents of the Netherlands monetary area; or
c) transfers to residents of countries outside Sweden and the Netherlands monetary area to the extent to which these may be authorised by the Netherlands Government under the arrangements contemplated in Article 8 (iii).
Article 6
If the rate of exchange between the Netherlands guilder and the Swedish krona is varied, the balances shall be compensated on the date of that modification at the rate of exchange previously in force.
The resulting net balance shall then be so adjusted that the equivalent in the currency of the country to which the balance is due remains the same as before the variation of the rate.
Article 7
The Contracting Governments shall co-operate with a view of assisting each other in keeping capital transactions within the scope of their respective monetary and financial policies. While favouring transfers which by serving direct and useful economic or commercial purposes tend to further international trade, they shall endeavour to control transfers which do not serve such purposes, in particular with a view to preventing transfers detrimental to the mutual stabilisation of the currencies.
Article 8
(i) If, during the currency of this Agreement, either of the Contracting Governments adheres to a general international monetary agreement, or if the Governments on consultation find that general multilateral convertibility of one or both of the currencies is established by international monetary cooperation in other forms, the terms of the present Agreement shall be reviewed with a view to making any amendments that may be required.
(ii) While the present Agreement continues in force the Contracting Governments shall co-operate to apply it with the necessary flexibility according to circumstances. De Nederlandsche Bank and Sveriges Riksbank, as agent of their respective Governments, will maintain contact on all technical questions arising out of the Agreement, and will collaborate closely on exchange control matters affecting the Netherlands monetary area and Sweden.
(iii) As opportunity offers the Contracting Governments shall seek with the consent of the other interested parties—
a) to make Swedish kronor at the disposal of residents of the Netherlands monetary area and guilders at the disposal of residents of Sweden available for making payments of a current nature to residents of countries outside the Netherlands monetary area and Sweden, and
b) to enable residents of countries outside the Netherlands monetary area and Sweden to use guilders at their disposal to make payments of a current nature to residents of Sweden and to use Swedish kronor at their disposal to make payments of a current nature to residents of the Netherlands monetary area.
(iv) Notwithstanding that each of the Contracting Governments shall be alone responsible for its monetary relations with third parties, they shall maintain contact wherever the monetary relations of the one affects the interests of the other.
Article 9
For the purpose of this Agreement the expression "the Netherlands Monetary Area" shall include the following territories:
Netherlands Territory in Europe (the Netherlands), the Islands of the Netherlands Archipelago in Asia (Netherlands Indies), and the territories of Curaçao and Surinam.
Article 10
In the event of the termination of the Agreement, any net balance standing to the credit of one of the two Contracting Governments shall be converted into Treasury Bills issued by the debtor country in the currency of the creditor country. The Treasury Bills referred to above shall bear three (3) per cent interest and be amortized in 5 equal annuities.
Article 11
The present Agreement, which shall be subject to review and adjustment after mutual consultation, shall come into force on the day of the signature. At any time thereafter either Contracting Government may give written notice to the other of its intention to terminate the Agreement and the Agreement shall cease to have effect three months after the date of such notice. It shall terminate on the 31st December, 1949, unless the two Contracting Governments agree otherwise.
In witness whereof the undersigned, duly authorised to that effect, have signed the present Agreement and have thereto affixed their seals.
Done at Stockholm, this 30th day of November, 1945, in duplicate in the
English language.
W. van Rechteren
O. Undén