Second Amendment of the Articles of Agreement of the International Monetary Fund

E1013104

The Second Amendment of the Articles of Agreement of the International Monetary Fund is a major 1970s reform package that overhauled the IMF’s legal framework, including ending the formal gold standard and redefining members’ exchange rate and reserve asset arrangements.

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Statements (49)

Predicate Object
instanceOf international monetary reform
legal instrument
treaty amendment
abolishes formal gold standard in the IMF
obligation to maintain par values in terms of gold or US dollar
official gold par value obligations of members
adoptedBy Board of Governors of the International Monetary Fund NERFINISHED
member countries of the International Monetary Fund
adoptionDecidedBy IMF Board of Governors Resolution NERFINISHED
affects obligations of IMF members regarding exchange arrangements
use of IMF resources by members
aimsAt adapting IMF to post–Bretton Woods environment
greater flexibility in exchange rate arrangements
reducing role of gold in the international monetary system
strengthening SDR as a reserve asset
appliesTo Articles of Agreement of the International Monetary Fund NERFINISHED
assigns IMF surveillance over members’ exchange rate policies
authorizes restitution of gold to IMF members
sale of IMF gold holdings
bindingOn all IMF member countries
creates new Article IV of the IMF Articles of Agreement
declares Special Drawing Rights as the principal reserve asset of the international monetary system
enteredIntoForceOn 1978
follows collapse of the Bretton Woods par value system
language English
French
Spanish
other official IMF languages
legalFrameworkOf International Monetary Fund NERFINISHED
modifies IMF financial operations framework
IMF quota and voting provisions
rules on allocation of Special Drawing Rights
overhauls IMF legal framework
partOf post–Bretton Woods monetary reform
precededBy First Amendment of the Articles of Agreement of the International Monetary Fund NERFINISHED
prohibits establishment of par values in terms of gold
obligatory use of gold in transactions with the IMF
use of gold as a denominator of the SDR
recognizes right of members to choose their exchange rate arrangements
redefines role of Special Drawing Rights
reforms exchange rate regime under the IMF
international monetary system
reserve asset system under the IMF
replaces par value system with a system of exchange rate flexibility
requires members to avoid manipulating exchange rates
members to promote a stable system of exchange rates
members to pursue orderly economic growth with reasonable price stability
strengthens IMF surveillance function
timePeriod 1970s

Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.

Articles of Agreement of the International Monetary Fund amendedBy Second Amendment of the Articles of Agreement of the International Monetary Fund