Malaysia legislation
Section 6
of INTERNATIONAL MONETARY FUND (RATIFICATION OF SECOND AMENDMENT TO THE ARTICLES OF AGREEMENT) ACT 1977
Section 6
The Central Bank of Malaysia Act 1958 [Act 519] is amended by—
(a)
substituting for subsection 19(1) the following new subsection—
“(1) The parity of the ringgit shall be determined by the Minister on the recommendation of the Bank in terms either of the currency or currencies of other members of the International Monetary Fund, the Special
Drawing Right, the common denominator prescribed by the International Monetary Fund under paragraph 1 of Schedule C to the Articles of Agreement of the
International Monetary Fund, or any other denominator consistent with the obligations of Malaysia under Article
IV and Schedule C to the Articles of Agreement of the
International Monetary Fund:
Provided that if and when the Bank notifies the
International Monetary Fund of the parity of the ringgit upon the International Monetary Fund deciding under
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the Articles of Agreement to introduce a widespread system of exchange arrangements based on stable but adjustable par values, such parity shall be published in the Gazette and shall take effect accordingly.”;
(b)
substituting for the words “Notwithstanding subsection
(1)
, the” appearing in subsection 19(2) the word “The”;
(c)
substituting for the words “mentioned in” appearing in subsection 19(3) the words “gazetted under”;
(d)
adding immediately after subsection 19(3) the following new subsection—
“(4) Notwithstanding subsection (1), the Minister may decide on the recommendation of the Bank that it is necessary and expedient for Malaysia not to determine a parity for the ringgit, but instead to apply any exchange arrangement for the ringgit that is not inconsistent with the Articles of Agreement of the
International Monetary Fund, including, but not limited to, the severing of the parity of the ringgit to any currency or currencies or any denominator.”;
(e)
substituting for the proviso appearing in section 21 the following new proviso—
“Provided that the rate of exchange quoted for any such transaction shall be consistent with the Articles of Agreement of the International Monetary Fund.”;
(f)
substituting for the words “section 5” appearing in subparagraph 30(1)(oo)(iii) the words “section 4”;
(g)
adding immediately after subparagraph 30(1)(oo)(v) the following new paragraph—
“(vi) exchange, if requested by other members of the International Monetary Fund at the time of purchase, balances of Malaysian currency purchased by other members from the International Monetary Fund, or obtained by other members in exchange for currency purchased from the International Monetary Fund, for a freely usable currency (defined in Article XXX(f) of the Articles of Agreement of the International Monetary
International Monetary Fund (Ratification of Second
Amendment to the Articles of Agreement)
9
Fund) selected by the Bank at an exchange rate between the ringgit and that currency as may be consistent with paragraph 7(a) of Article XIX of the Articles of
Agreement of the International Monetary Fund;”.
Act in relation to Act 472 and Act 12