Press Release No. 95/16

Press Release: Kyrgyz Republic Accepts Article VIII Obligations

April 4, 1995

The Government of the Kyrgyz Republic 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 March 29, 1995. IMF members accepting the obligations of Article VIII undertake to refrain from imposing exchange restrictions on the making of payments and transfers for current international transactions or from engaging in discriminatory currency arrangements or multiple currency practices without IMF approval. A total of 101 countries have now assumed Article VIII status.

Two of the purposes of the IMF, as stated in its Articles of Agreement, are to facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income, and to assist in the establishment of a multilateral system of payments in respect of current transactions between IMF members. In seeking to achieve these objectives, the IMF exercises firm surveillance over the exchange rate policies of its members, and oversees the elimination of exchange restrictions that hamper the growth of world trade.

By accepting the obligations of Article VIII, the Kyrgyz Republic gives confidence to the international community that it will continue to pursue sound economic policies that will obviate the need to use exchange restrictions on the making of payments and transfers for current international transactions, and thereby contribute to a multilateral payments system free of restrictions.

The Kyrgyz Republic joined the IMF on May 8, 1992 and its quota¹ is SDR 64.5 million (about $101 million).