International Monetary Agreements Act 1947

This Act may be cited as the International Monetary Agreements Act 1947.

This Act shall come into operation on the day on which it receives the Royal Assent.

In this Act, unless the contrary intention appears:

Bank means the International Bank for Reconstruction and Development.

Bank Agreement means the Articles of Agreement of the International Bank for Reconstruction and Development, done at Washington on 27 December 1945, as in force for Australia from time to time.

Note: The Articles of Agreement of the International Bank for Reconstruction and Development are in Australian Treaty Series 1947 No. 15 ([1947] ATS 15) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

Fund means the International Monetary Fund.

Fund Agreement means the Articles of Agreement of the International Monetary Fund, done at Washington on 27 December 1945, as in force for Australia from time to time.

Note: The Articles of Agreement of the International Monetary Fund are in Australian Treaty Series 1947 No. 11 ([1947] ATS 11) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

Investment Disputes Convention means the Convention on the Settlement of Investment Disputes between States and Nationals of Other States signed by Australia on 24 March 1975, the English text of which is set out in Schedule 3 to the International Arbitration Act 1974.

New Arrangements to Borrow means Decision No. 11428‑(97/6), dated 27 January 1997, of the Executive Board of the Fund, as amended and renewed by the following decisions of the Executive Board of the Fund:

Decision No. 14577‑(10/35), dated 12 April 2010;

Decision No. 15014‑(11/110), dated 16 November 2011;

Decision No. 15073‑(12/1), dated 21 December 2011;

Decision No. 16079‑(16/99), dated 4 November 2016;

Decision No. 16645‑(20/5), dated 16 January 2020;

any other decision of the Executive Board of the Fund that is notified under subsection 8B(3).

Note: The decision referred to in paragraph (d) is in Australian Treaty Series 2017 No. 42 ([2017] ATS 42) and could in 2019 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

relevant financial obligation, in relation to the Bank, has the meaning given by section 3A.

Reserve Bank means the Reserve Bank of Australia.

special drawing rights means special drawing rights allocated by the Fund under Article XV of the Fund Agreement.

Special Drawing Rights Department means the Special Drawing Rights Department maintained by the Fund under the Fund Agreement.

value, in relation to special drawing rights, means the amount that is the equivalent in the currency of Australia of the value of the rights as fixed under the Fund Agreement.

World Bank organisation means any of the following:

the International Bank for Reconstruction and Development;

the International Development Association (referred to in the International Development Association Act 1960);

the International Finance Corporation (referred to in the International Finance Corporation Act 1955);

the Multilateral Investment Guarantee Agency (referred to in the Multilateral Investment Guarantee Agency Act 1997);

the International Centre for Settlement of Investment Disputes established by the Investment Disputes Convention.

For the purposes of this Act, a relevant financial obligation in relation to the Bank is an obligation of Australia (contingent or otherwise) for which the following requirements are satisfied:

the obligation requires (or could require) Australia to make one or more payments;

the obligation is undertaken or imposed under:

the Bank Agreement; or

an agreement or arrangement between Australia and the Bank (other than an agreement mentioned in section 8CA); or

a resolution adopted by the Board of Governors of the Bank;

for an obligation undertaken or imposed under an agreement, arrangement or resolution mentioned in subparagraph (b)(ii) or (iii)—the agreement, arrangement or resolution relates to Australia:

purchasing or subscribing to shares of the capital stock of the Bank; or

purchasing a bond, debenture, convertible note or similar financial instrument issued by the Bank; or

granting a guarantee in support of the purposes of the Bank; or

providing any other form of financial accommodation in support of the purposes of the Bank;

the obligation is not excluded by a determination under subsection (5).

However, for the purposes of this Act:

an obligation that is undertaken or imposed after the commencement of this section is a relevant financial obligation in relation to the Bank only if notice of the obligation has been given under subsection (5); and

an increase in an amount of a relevant financial obligation in relation to the Bank because of the variation of, or making of a new, agreement, arrangement or resolution after the commencement of this section is to be taken into account only if notice of the increase has been given under subsection (5).

To avoid doubt, for the purposes of subsection (2), the timing of when a contingency happens or may happen does not affect the timing of when a contingent obligation itself is undertaken or imposed.

Note: For example, an obligation to make one or more payments in response to a call on callable shares is undertaken or imposed when the callable shares are purchased or subscribed to (rather than when the call is made).

Treasurer may exclude obligations

The Treasurer may, by legislative instrument, determine that an obligation is excluded for the purposes of paragraph (1)(d).

Notification of new financial obligations

The Treasurer may, by legislative instrument, give notice of:

the undertaking or imposition of an obligation for the purposes of paragraph (2)(a); or

an increase in an amount for the purposes of paragraph (2)(b).

A legislative instrument under subsection (5) commences at the later of the following days or times:

the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;

the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.

The membership of Australia of the Fund and of the Bank is approved.

Participation by Australia in the Special Drawing Rights Department is approved.

The Reserve Bank, being the central bank of the Commonwealth of Australia, is hereby designated as the depository in Australia for all the holdings of Australian currency, and for other assets, of the Fund and of the Bank.

The Treasurer may give the Reserve Bank a written direction:

to buy special drawing rights from the Commonwealth for an amount equal to the value of the rights; or

to sell special drawing rights to the Commonwealth for an amount equal to the value of the rights; or

to buy special drawing rights from the governments of other countries, the Fund or other institutions, authorities or persons for an amount equal to:

the value of the rights; or

an amount that is the equivalent of that value in the currency of a country other than Australia; or

to sell special drawing rights to the governments of other countries, the Fund or other institutions, authorities or persons for an amount equal to:

the value of the rights; or

an amount that is the equivalent of that value in the currency of a country other than Australia.

An instrument giving directions under subsection (1) may contain such incidental or supplementary directions as the Treasurer thinks necessary.

Amounts from time to time payable by the Commonwealth for special drawing rights sold to it by the Reserve Bank under this section are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.

Special drawing rights, and operations and transactions in relation to special drawing rights, are not liable to taxation under any law of the Commonwealth, of a State or of a Territory.

The Treasurer may, from time to time, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911 or under the provisions of any Act authorizing the issue of Treasury Bills, such amounts as are required to be paid by Australia (not being amounts referred to in section 8 of this Act) by reason of:

its membership of the Fund and of the Bank; or

its obligations under the New Arrangements to Borrow; or

its obligations under an agreement entered into under section 8CAB.

Moneys so borrowed may be issued and applied for the purposes of making the payments specified in subsection (1), and of making payments in redemption of securities issued under section 7.

To the extent that the Fund is prepared to accept from Australia promissory notes or other securities issued by Australia in place of any of the following, the Treasurer may make and issue those securities:

any payment that Australia is required to make to the Fund;

any Australian currency held by the Fund.

To the extent that the Bank or another body is prepared to accept from Australia promissory notes or other securities issued by Australia in place of any of the following, the Treasurer may make and issue those securities:

any payment to the Bank or other body that Australia is required to make in accordance with a relevant financial obligation in relation to the Bank;

any Australian currency held by the Bank.

A security issued under subsection (1) or (1A) is to be:

non‑negotiable; and

non‑interest bearing; and

payable to the Fund, Bank or other body, as the case may be, at its par value on demand.

Sums payable under any security issued under this section shall be a charge on the Consolidated Revenue Fund.

Where, upon the redemption of any such security, the moneys necessary to redeem the security are not paid out of the proceeds of any loan raised under this Act, the moneys shall be paid out of the Consolidated Revenue Fund, which is, to the necessary extent, hereby appropriated accordingly.

There shall be payable out of the Consolidated Revenue Fund, which is, to the necessary extent, hereby appropriated accordingly, such amounts as Australia is, from time to time, required to pay to the Fund in pursuance of the following provisions of the Fund Agreement:

Section 3 of Article III (which deals with payments when quotas are changed);

Section 8 of Article V (which deals with charges).