Question & AnswerQ&A (Republic Act No. 6045)
The short title of Republic Act No. 6045 is the "Special Drawing Rights Act."
The Act authorizes the President of the Philippines to accept the amendment to the Articles of Agreement of the International Monetary Fund (IMF) to establish a facility for Special Drawing Rights (SDRs) and to implement certain modifications in the Fund's existing rules and practices.
The amendment establishes a facility for Special Drawing Rights (SDRs) within the IMF and introduces modifications to the Fund's present rules and practices.
The Central Bank of the Philippines (now Bangko Sentral ng Pilipinas) is authorized to receive and hold Special Drawing Rights.
The Central Bank is empowered to receive and hold SDRs, perform all acts necessary to fulfill the obligations of a participant in the Special Drawing Account of the IMF as prescribed by the Articles of Agreement, and comply with relevant rules promulgated under the Fund.
Yes, Section 4 states that all laws or parts of laws inconsistent with this Act are hereby repealed.
The Act took effect upon its approval on August 4, 1969.
While the Act does not define SDRs explicitly, SDRs are international reserve assets created by the IMF to supplement its member countries' official reserves.
Indirectly, yes. By allowing the Central Bank to participate in the IMF's SDR facility, it affects the country's international financial and monetary policies.
The Articles of Agreement of the International Monetary Fund are amended as authorized by this Act to establish the SDR facility and implement modifications in Fund rules.