International Monetary Fund Is Tightening Up Its Dollar Aid To Member Countries

Wanganui Chronicle, 8 November 1949, Page 5

International Monetary Fund Is Tightening Up Its Dollar Aid To Member Countries

WASHINGTON, Nov. 7 (Rec. 8 pm).—The International Monetary Fund, under pressure from the United States, is tightening up its dollar aid to member countries.

Diplomatic sources said the United States proposed the fund should in‘future obtain a specific date for repayment from any country applying for dollars. The United States is also emphasising the need for repayment, as promptly as possible, ot funds already withdrawn. The aims were:— (1) To make the fund truly revolving so that currency collections from one nation would become available for use by another. (2) To ensure the fund will have resources in 1952 to step into its intended role as a ready source for currencies needed in foreign trade. This would replace Marshall Aid grants.

It is understood no formal action has been taken by the fund, but none is needed. The United States voting strength on the board is considered sufficient to give her a virtual veto over any proposed dollar outlays. The fund was established three years ago as an international currencies pool, but it has become largely an exit channel for dollars. Of 737,300,000 dollars so far withdrawn, less than 2,500,000 dollars have been repaid. The fund does not lend currency, it is sold. For example, when Britain obtained 300,000,000 dollars in 1947 she paid into the fund an equivalent sum in pounds. When she repays she will buy back her pounds with dollars.