APPROACH TO I.M.F.

Press, Volume CII, Issue 30188, 20 July 1963, Page 11

APPROACH TO I.M.F.

‘Dominance Of $ Ended’

(N.Z .P.A.-Reuter — Copyright)

LONDON, July 19

America's decision to ask the International Monetary Fund to help stem the outflow of gold was hailed by “The Times” today as marking "the end of the post-war dominance of the dollar.”

“The Times” said the decision “confirms a state of affairs that has been generally recognised for the past two or three years. The significance of the move is greater then the amount involved.” The renewed outflow of gold had occurred at a time when it was increasingly apparent that the American payments deficit was showing no signs of improvement. The borrowing from the I.M.F. would “give the United States time to set other more fundamental measures in operation to replace the over-all deficit.” And it would “resolve the dilemma of a few European countries who have been piling up dollars and who were plainly reluctant to present them for exchange into gold in Washington.”

These would now be able to offer their dollars to the 1.M.F., which, until this operation, had had too many dollars and too few other currencies.

The “Finainciail Times,” which recalled that until now the United States had refused to borrow from the I.M.F. at all, said the change of heart would make “a comfortable impression” in Europe.