Thursday, September 3, 2015

IMF - 1975 - Purchases under the Oil facility for 1975 - Prior use of Gold tranche

Gold tranche - Amount of gold that each member country of theInternational Monetary fund (IMF) contributes as part of itsmembership obligations to the fund, and can readily borrow when facing economic difficulties. See also special drawing rights.



Source: http://adlib.imf.org/digital_assets/wwwopac.ashx?command=getcontent&server=webdocs&value=EB/1975/SM/171899.PDF

CVCE - Plans and studies drawn up after the Werner Report


...


Source: http://www.cvce.eu/en/collections/unit-content/-/unit/56d70f17-5054-49fc-bb9b-5d90735167d0/6cd0fcad-2e67-4abc-a626-7cafbe1fcda6/Resources

 

 

 

AEI - EMS - Texts concerning the European Monetary System

COMMITTEE OF GOVERNORS OF THE CENTRAL BANKS OF THE MEMBER STATES OF THE EUROPEAN ECONOMIC COMMUNITY EUROPEAN MONETARY CO-OPERATION FUND

Texts concerning the European Monetary System 


Agreement between the Central Banks of the Member States of . the European Economic Community laying down the operating procedures for the European Monetary System 



Decision (No.12/79) of the Board of Governors of 13th March 1979 


Agreement between the Central Banks of the Member States of . the European Economic Community laying down the operating procedures for the European Monetary System 
13 March 1979



 Council Regulation (EEC) No. 3180/78 of 18th December 1978 changing the value of the unit of account used by the European Monetary Co-operation Fund





Source:  http://aei.pitt.edu/38739/1/A3700.pdf

CVCE - The difficulties of the monetary snake and the EMCF

"...the EMCF was established on 3 April 1973 30 and was the kernel of the future organisation of the central banks at Community level. Its primary aim was to oversee the proper functioning of the progressive narrowing of the fluctuation margins between the Community currencies. It also had to monitor interventions in Community currencies on the exchange markets. Finally, it was responsible for settlements between central banks leading to a concerted policy on reserves. The fund had legal personality and was administered by a board comprising the governors of the national central banks 31 and one representative from the Commission (who was not a member of the board in the strict sense: he had the right of address, but not the right to vote). Generally, it had to abide by the agreements between the central banks on the progressive narrowing of margins and short-term support. 32 However, the fund did not have its own resources, and its powers were limited because the principle of pooling reserves was not adopted. 33..."

Source: http://www.cvce.eu/en/collections/unit-content/-/unit/56d70f17-5054-49fc-bb9b-5d90735167d0/2d84f078-672e-4ae9-92d5-b4969911442a

ECB archive - 1978 - Outline of an agreement on the European Monetary System 12/12/1978





Source: https://www.ecb.europa.eu/ecb/history/archive/pdf/released/1978-12-12_Outline_agreement.pdf?6b22d1c608512cdaeb35027327f06b4a

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MORE 

Records released: https://www.ecb.europa.eu/ecb/history/archive/requested/html/index.en.html

ECB - 1978 - Note concerning decisions to be taken with a view to implementing the new European Monetary System



Source: https://www.ecb.europa.eu/ecb/history/archive/pdf/released/1978-12-09_Note.pdf?5368254bb6ca8e40e1b5852aa611e3a2

Wednesday, September 2, 2015

ECB archive 1973 - EMCF - First directive of the Committee of Governors to the agent

British EUROPEAN MONETARY COOPERATION FUND
FIRST DIRECTIVE OF THE COMMITTEE OF GOVERNORS
TO THE AGENT,
DATED 14th INY 1973 




Source: https://www.ecb.europa.eu/ecb/history/archive/pdf/released/1st_directive_EMCF_agent_14_5_1973_EN.pdf?3d9bd073094cf6f76aeb6991b5074dc7

ECB archive - 1978 - Summary of questions and options - annex to the interim report on the European Monetary System - (Heyveart report no. 39)



Source: https://www.ecb.europa.eu/ecb/history/archive/pdf/released/1978-08-23_Summary.pdf?8c49c7e062828e09222f2c60eeb0245b

ECB archive - 1978 - Interim report on the European Monetary System -(Heyveart report no. 39)

21/08/1978


 




Source: https://www.ecb.europa.eu/ecb/history/archive/pdf/released/1978-08-21_Interim_report.pdf?9578a6091c862c83473b37ea6a4ab01b

ECB archive - 1978 - Draft of a letter of transmittal to submit the Heyvaert report No. 39 to the council of imnisters





Source: https://www.ecb.europa.eu/ecb/history/archive/pdf/released/1978-09-08_Draftletter.pdf?43d4548c3c61aea92fdafc63a4554811

BS - RM - The Bank of England’s revealing views on Gold in 1988

A repost of the original article created by at BullionStar:

Source: https://www.bullionstar.com/blogs/ronan-manly/the-bank-of-englands-revealing-views-on-gold-in-1988/

Extract:

"THE EXCHANGE EQUALISATION ACCOUNT’S HOLDINGS OF GOLD 
  1. The EEA’s holdings of gold, including the gold swapped for ECU’s with the EMCF, amounts to 23.8 mn ozs, or some 740 tons. Since the substantial reduction in stocks in the late 1960’s and early 1970’s resulting from the then balance of payments’ crises, there has been no significant change in holdings. At the annual revaluation of the reserves in March 1988, the gold holdings were worth $8.1 bn. However as a share of total reserves they have fallen significantly from 31 per cent in 1980 to 17 per cent of total spot reserves now. Table 1 shows the change.
...
(c) Gold in the international monetary system
11. After the collapse of the Bretton Woods system and the abolition of the fixed parities between domestic currencies and gold, the international monetary community decided in principle to remove gold from the international monetary system. Until late 1978 central banks understood not to add to their gold stocks, and the IMF and the USA reduced their gold holdings through auction.
 12. However, the move to eliminate gold never gathered much momentum, and has now petered out. The European Monetary System (EMS) has given gold something of a new role in international monetary affairs. Gold deposited with the EMCF can be used to obtain currency through the ECU mobilisation process or (were we in the exchange rate mechanism (ERM) through the use of official ECUs themselves). However, EMS membership (or for that matter, ERM participation) does not constitute an overwhelming ground for maintaining present gold holdings, though ECU mobilisation, within limits, makes gold deposited with the EMCF more liquid.
13. [The mechanism for creating ECUs through the EMCF works on both gold and dollar deposits, so that to the extent that gold was replaced by dollars, the EMCF’s capacity to create ECUs would not be affected. Furthermore, the logic of the system is that an identifiable Community asset is created against the deposit of non-Community reserve assets, namely dollars and gold. There is no reason in logic why EMCF members should not deposit 20 per cent of their reserves in non-Community currencies other than dollars as well, eg. Yen and Swiss Francs, if it is desirable to increase the scale of ECU creation or to compensate for reductions in gold deposits.]
14. Looking forward over the longer term, it is possible that if moves towards more managed rates continue, there will be renewed attempts to restore gold to a more formal role as a reserve asset. It was interesting to note the amount of speculation along these lines in the US last Autumn, following Secretary Baker’s proposal for a commodity indicator (including gold), even though Secretary Baker was at pains to make it clear that he was not advocating a commodity standard. However, the probability of this happening is not sufficiently high to justify the UK retaining its gold stocks on these grounds alone.
15. Gold is therefore left with something more than a residual function. Its possession is likely to increase confidence in the holder’s currency, at least in times of difficulty; and although it is illiquid compared to many financial assets, and expensive to store, in most circumstances it can be used as security for borrowing or to obtain currency through swaps.

ECB - 1978 - Outline of an agreement on the European monetary system





Source: https://www.ecb.europa.eu/ecb/history/archive/pdf/released/1978-12-12_Outline_agreement.pdf?6b22d1c608512cdaeb35027327f06b4a

IMF adlib - 1964 - "International Reserve Units" Compared With Gold Tranche Positions in the Fund

Prepared by the Research & Statistics Department March 16, 1964

Content:
 
1. "International Reserve Units"
...
2. Gold Tranche Positions in the Fund
...
3. Similarities Between Reserve Units and Gold Tranche Positions
...
4. Differences Between Reserve Units and Gold Tranche Positions
 ...

Extract:
 
"The Bernstein plan does not spell out how positions created proportional to quotas can be held proportional to gold holdings (unless quotas are proportional to gold holdings, which does not appear to be the intention). This point could be resolved by countries trading gold for units among themselves, or by some kind of transitional provisions."


Extracts from Mr. Bernstein's Paper on "A Practical Program for International Monetary Reserves"

Foreign Exchange as Reserve Units






Source: http://adlib.imf.org/digital_assets/wwwopac.ashx?command=getcontent&server=webdocs&value=EB/1964/DM/254005.PDF

CVCE - TPS - Bibliography

Bibliography

Source: http://www.cvce.eu/en/education/unit-content/-/unit/32211249-e856-4268-b787-3e816f0764db/1723ab44-7f55-472e-9cc0-cbd70e1c5e75

IMF adlib - 1978 - Arrangements on Gold Among the Countries of the Group of Ten


January 19, 1976





Observation:
1. No price peg
2.Official G10 stock under ceiling
3. CB governed trading
4. Gold reporting to BIS and IMF
5.Validity 2y


Arrangements expired in January 31, 1978




Result is status quo on the IMS non-system.

Source: http://adlib.imf.org/digital_assets/wwwopac.ashx?command=getcontent&server=webdocs&value=EB/1978/EBS/236639.PDF

H/T to

IMF adlib - Report on G-1O Gold Arrangements


Basle meeting on gold arrangements, January 1977, G10 governors and IMF Managing Director

Observation:
1. BIS is tracking movements of monetary gold
2. Establishment of ceiling
2. Gold for minting could be repurchased


Source: http://adlib.imf.org/digital_assets/wwwopac.ashx?command=getcontent&server=webdocs&value=EB/1977/EBS/231472.PDF

H/T to