Tuvalu Accepts Article VIII Obligations
IMF News, November 3, 2016
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Bibliographic details
- Published: November 3, 2016
Announcement
- Press Release No. 16/483
- Date of publication: November 3, 2016
- The government of Tuvalu notified the IMF that it has accepted the obligations of Article VIII, Sections 2(a), 3, and 4 of the IMF Articles of Agreement, with effect from October 7, 2016.
Legal and policy implications
- Article I (iv) of the Articles of Agreement: one key purpose of the IMF is to “assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions, which hamper the growth of world trade.”
- Sections 2(a), 3 and 4 of Article VIII establish obligations to:
- refrain from imposing restrictions on the making of payments and transfers for current international transactions, and
- refrain from engaging in discriminatory currency arrangements or multiple currency practices without IMF approval.
Expected economic effects and rationale
- By accepting Article VIII obligations, Tuvalu signals commitment to pursuing economic policies that contribute to a multilateral payments system free of restrictions.
- Anticipated benefits cited:
- can help facilitate Tuvalu’s international trade, and
- can improve the economy's attractiveness to foreign investors.
Background and country details
- Tuvalu joined the IMF on June 24, 2010.
- Tuvalu’s quota is SDR 2.5 million (about $3.5 million).
Media contact
- IMF Communications Department, MEDIA RELATIONS
- PRESS OFFICER: Keiko Utsunomiya
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
International Monetary Fund press release, November 3, 2016.