60 STAT.] MULTILATERAL-INTERNATIONAL MONETARY FUND-DEC. 27, 1945 1411 Section 5. Effect of other internationalagreements on restrictions Members agree not to invoke the obligations of any engagements entered into with other members prior to this Agreement in such a manner as will prevent the operation of the provisions of this Article. ARTICLE VIII GENERAL OBLIGATIONS OF MEMBERS Section 1. Introduction In addition to the obligations assumed under other articles of this Agreement, each member undertakes the obligations set out in this Article. Section 2. Avoidance of restrictionson current payments (a) Subject to the provisions of Article VII, Section 3 (b), and Article XIV, Section 2, no member shall, without the approval of the P. 1420 Fund, impose restrictions on the making of payments and transfers for current international transactions. (b) Exchange contracts which involve the currency of any member and which are contrary to the exchange control regulations of that member maintained or imposed consistently with this Agreement shall be unenforceable in the territories of any member. In addition, members may, by mutual accord, cooperate in measures for the purpose of making the exchange control regulations of either member more effective, provided that such measures arid regulations are consistent with this Agreement. Section 3. Avoidance of discriminatorycurrency practices No member shall engage in, or permit any of its fiscal agencies referred to in Article V, Section 1, to engage in, any discriminatory 1tep1406. currency arrangements or multiple currency practices except as au- thorized under this Agreement or approved by the Fund. If such arrangements and practices are engaged in at the date when this Agreement enters into force the member concerned shall consult with the Fund as to their progressive removal unless they are main- tained or imposed under Article XIV, Section 2, in which case the ' i- 4-0 provisions of Section 4 of that Article shall apply. Section 4. Convertibility of foreign held balances (a) Each member shall buy balances of its currency held by another member if the latter, in requesting the purchase, represents (i) that the balances to be bought have been recently acquired as a result of current transactions; or (ii) that their conversion is needed for making payments for cur- rent transactions. The buying member shall have the option to pay either in the currency of the member making the request or in gold. (b) The obligation in (a) above shall not apply (i) when the convertibility of the balances has been restricted consistently with Section 2 of this Article, or Article VI, Section 3; or AP . 109.
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