Law Summary
Requirement for Official Acceptance by Member Countries
- Formal acceptance by the member countries is necessary for the amendment to take effect.
- This acceptance must be expressed by an official act of their respective governments.
Philippine Government's Acceptance
- Pursuant to the constitutional powers vested in the President of the Philippines, the Government formally accepts the Second Amendment.
- The acceptance is based on the Report of the Executive Directors to the Board of Governors of the IMF dated March 1976, integral to the decree.
Key Changes Introduced by the Amendment
- Exchange Arrangements: Significant modifications to the system governing exchange rates and transactions.
- Role of Gold: Substantial reduction in gold's importance within the international monetary system.
- Special Drawing Rights (SDRs): Expanded possible uses, aiming to establish SDRs as the principal reserve asset.
- Fund’s Financial Operations: Simplification and broadening of the types of financial operations and transactions the IMF can undertake.
Legal Effect and Authorization
- The President of the Philippines, through this decree, exercises the constitutional authority to enact the acceptance.
- The acceptance binds the Philippine government to the amended Articles of Agreement, thereby aligning the country’s international monetary commitments with the IMF reforms.
Formalization and Execution
- The decree is formalized and signed in Manila on October 4, 1976.
- Signed by President Ferdinand E. Marcos and Presidential Assistant Juan C. Tuvera, codifying Philippine consent to the amendment.