A.—B

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 exchange 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, i) 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 10 per cent, of the initial par value, the Fund shall raisfe no objection: . , (ii) Does not exceed a further 10' per cent, of the initial par value,_ the 1 unci may either concur or object, but shall declare its attitude within- seventytwo 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 underi Section 7 of this Article shall not be taken into account in determining whether a proposed change falls withm (i), (n), or (in) of (c) above. (e) A member may change the par value of its currency without the concurrence ot the Fund if the change does not affect the international transactions of members of the Fund. „ (/) The Fund shall concur in a proposed change which is within the terms of (c) (n) 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 I unci 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 ot the currencies of all members, provided each such change is approved by every membei which has 10 per cent, 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 oi its currency to be changed by such action. Section 8. —Maintenance of Gold Value of the Funds 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 shall pay to the lund withm a reasonable time an amount of its own currency equal to the reduction m the gold value of its currency held by the Fund. _ (c) Whenever the par value of a member's currency is increased, the .bund 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 bund. (d) The provisions of this Section shall apply to a uniform proportionate change m the par values of the currencies of all members, unless at the time when such a change is proposed the Fund decides otherwise.

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