TNAG-2814-FCO40-4060-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 49

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12 January 1993

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XCCI(93)2 Copy No.

NOTE FOR EXECUTIVE COUNCIL

ARTICLE IV CONSULTATIONS WITH THE INTERNATIONAL MONETARY FUND (IMF)

INTRODUCTION

This note informs Members of -

031/10

RECEIVED IN REGISTRY

18 JAN 1993

DESK OFFICER

INDEX

(a) the outcome of the 1992 Article IV consultations with

(b)

the International Monetary Fund (IMF) which took place from 4 to 14 November 1992; and

a change in the consultation arrangements under which Hong Kong would revert to the 12-month consultation cycle.

REGISTRY

PA

Mution Taken

BACKGROUND

2

Under Article IV of the IMF Articles of Agreement, the Fund may request consultations with its members and their territories on their exchange rate policies. Members of the Fund and their territories are required to provide the Fund with the information necessary for the Fund's surveillance of their exchange rate policies and their compliance with their general obligations regarding exchange arrangements. When requested by the Fund, members and their territories are required to consult with it on their exchange rate policies.

3

The first IMF Article IV consultations with Hong Kong took place in October 1990 after the Chinese side had indicated that they had no objection to the establishment of a relationship of Article IV consultations between Hong Kong and the IMF. Consultations have since been held on an annual basis.

Executive Council