64-(44)

Il SÉRIE — NUMERO 1

Section 5. Separate currencies within a member's territories.

a) Action by a member with respect to its currency under this article shall be deemed to apply to the separate currencies of all territories in respect of which the member has accepted this Agreement under article XXXI, section 2-g), unless the member declares that its action relates either to the metropolitan currency alone, ox only to one or more specified separate currencies, or to the metropolitan currency and one or more specified separate currencies.

b) Action by the Fund under this article shall be deemed to relate to all currencies of a member referred to in a) above unless the Fund declares otherwise.

ARTICLE V Operations and transactions of 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 and transactions.

a) Except as otherwise provided in this Agreement, transactions on the account of the Fund shall he limited to transactions for the purpose of supplying a member, on the initiative of such member, with special drawing rights or the currencies of other members from the general resources of the Fund, which shall be held in the General Resources Account, in exchange for the currency of the member desiring to make the purchase.

b) If requested, the Fund may decide to perform financial and technical services, including the administration of resources contributed by members, that are consistent with the purposes of the Fund. Operations involved in the performance of such financial services shall not be on the account of the Fund. Services under this subsection shall not impose any obligation on a member without its consent.

Section 3. Conditions governing use of the Fund's general resources.

a) The Fund shall adopt policies on the use of its general resources, including policies on stand-by or similar arrangements, and may adopt special policies for special balance of payments problems, that will assist members to solve their balance of payments problems in a manner consistent with the provisions of this Agreement and that will establish adequate safeguards for the temporary use of the general resources of the Fund.

b) A member shall be entitled to purchase the currencies of other members from the Fund in exchange for an equivalent amount of its own currency subject to the following conditions:

i) The member's use of the general resources of the Fund would be in accordance with the provisions of this Agreement and the policies adopted under them;

ii) The member represents that it has a need to make the purchase because of its balance of payments or its reserve position or developments in its reserves;

iii) The proposed purchase would be a reserve tranche purchase, or would not cause the Fund's holdings of the purchasing member's currency to exceed two hundred percent of its quota;

iv) The Fund has not previously declared under section 5 of this article, article vi, section 1, or article xxvi, section 2-a), that the member desiring to purchase is ineligible to use the general resources of the Fund.

c) The Fund shall examine a request for a purchase to determine whether the proposed purchase would be consistent with the provisions of this Agreement and the policies adopted under them, provided that requests for reserve tranche purchases shall not be subject to challenge.

d) The Fund shall adopt policies and procedures on the selection of currencies to be sold that take into account, in consultation with members, the balance of payments and reserve position of members and developments in the exchange markets, as well as the desirability of promoting over time balanced positions in the Fund, provided that if a member represents that it is proposing to purchase the currency of another member because the purchasing member wishes to obtain an equivalent amount of its own currency offered by the other member, it shall be entitled to purchase the currency of the other member unless the Fund has given notice under article vii, section 3, that its holdings of the currency have become scarce.

e):

i) Each member shall ensure that balances of its currency purchased from the Fund are balances of a freely usable currency or can be exchanged at the time of purchase for a freely usable currency of its choice at an exchange rate between the two currencies equivalent to the exchange rate between them on the basis of article xix, section 7-a);

ii) Each member whose currency is purchased from the Fund or is obtained in exchange for currency purchased from the Fund shall collaborate with the Fund and other members to enable such balances of its currency to be exchanged, at the time of purchase, for the freely usable currencies of other members;

iii) An exchange under i) above of a currency that is not freely usable shall be made by the member whose currency is purchased unless that member and the purchasing member agree on another procedure;

iv) A member purchasing from the Fund the freely usable currency of another member and wishing to exchange it at the time of purchase for another freely usable currency shall make the exchange with the other member if requested by that member. The exchange shall be made for a freely usable currency selected by the other member at the rate of exchange referred to in i) above.