Press Release: Socialist People's Libyan Arab Jamahiriya Accepts Article VIII Obligations
July 23, 2003
The government of the Socialist People's Libyan Arab Jamahiriya has notified the International Monetary Fund (IMF) that it has accepted the obligations of Article VIII, Sections 2, 3, and 4 of the IMF Articles of Agreement, with effect from June 21, 2003.
When members join the IMF, they undertake to refrain from imposing new restrictions on the making of payments and transfers for current international transactions, and from engaging in discriminatory currency arrangements or multiple currency practices, without IMF approval. However, restrictions on making payments and transfers for current international transactions that exist before a member joins the IMF can be maintained under transitional provisions in Article XIV of the IMF Articles of Agreement. When a member accepts the obligations of Article VIII it effectively signals an intention to no longer avail itself of the transitional provisions of Article XIV.
A total of 156 countries have now assumed Article VIII status.
By accepting the obligations of Article VIII, Libya gives confidence to the international community that it will pursue economic policies that will make restrictions on the making of payments and transfers for current international transactions unnecessary, and will contribute to a multilateral payments system free of restrictions. Libya maintains an exchange system which is currently pegged to the SDR.
Libya joined the Fund on September 17, 1958. Its quota1 is SDR 1.123 billion (about US$1.564 billion). Libya has no outstanding use of IMF financing.
1 A member's quota in the IMF determines, in particular, the amount of its subscription, its voting weight, its access to IMF financing, and its share of the allocation of SDRs.