United Nations Treaty Series/Volume 2/1/17
No. 17
NETHERLANDS AND NORWAY
Monetary Agreement. Signed at Oslo, on 6 November 1945. Came into force on 6 November 1945, by signature.
English official text communicated by the Minister for Foreign Affairs of the Netherlands. The registration took place on 25 April 1947.
The Royal Netherlands Government and the Royal Norwegian Government have agreed as follows:
Article 1
The rate of exchange between the Netherlands florin and the Norwegian krone shall be 53.455 Netherlands florins to 100 Norwegian kroner.
This rate (hereinafter referred to as "the official rate") shall not be varied by either of the Contracting Governments except after giving to the other as much notice as may be practicable.
In all territories where they have jurisdiction the Contracting Governments shall enforce the use of the official rate as the basis of all transactions involving a relationship between the two currencies. Norges Bank and De Nederlandsche Bank, as agents of their respective Governments, shall fix by mutual agreement the maximum spread above or below the official rate which will be authorized on the markets which they control.
Article 2
De Nederlandsche Bank (acting as agents of the Royal Netherlands Government) shall sell florins to Norges Bank (acting as agents of the Royal Norwegian Government) as may be required for payments which residents of Norway, under the exchange regulations in force in Norway, are permitted to make to residents of the Netherlands monetary area,—
a) against Norwegian kroner to be credited at the official rate to De Nederlandsche Bank's No. 1 Account with Norges Bank, provided that the balance standing to the credit of that Account is not thereby increased above a maximum of 37.41 million Norwegian kroner, or
b) if the balance standing to the credit of De Nederlandsche Bank's No. 1 Account with Norges Bank amounts to 37.41 million Norwegian kroner either against such foreign currencies as may be agreed by De Nederlandsche Bank, or against gold to be set aside in De Nederlandsche Bank's name at Norges Bank in Oslo.
Norges Bank (acting as agents of the Royal Norwegian Government) shall sell Norwegian kroner to De Nederlandsche Bank (acting as agents of the Royal Netherlands Government) as may be required for payments which residents of the Netherlands monetary area, under the exchange regulations in force in that area, are permitted to make to residents of Norway,—
a) against florins to be credited at the official rate to Norges Bank's No. 1 Account with De Nederlandsche Bank, provided that the balance standing to the credit of that account is not thereby increased above a maximum of 20 million florins, or
b) if the balance standing to the credit of Norges Bank's No. 1 Account with De Nederlandsche Bank amounts to 20 million florins, either against such foreign currencies as may be agreed by Norges Bank, or against gold to be set aside in Norges Bank's name at De Nederlandsche Bank in Amsterdam.
Article 3
The kroner balance standing to the credit of De Nederlandsche Bank's No. 1 Account with Norges Bank and the florin balance standing to the credit of Norges Bank's No. 1 Account with De Nederlandsche Bank shall be compensated at the end of each month or at any other time at the request of one of the two parties at the official rate of exchange.
Article 4
De Nederlandsche Bank shall have the right at any time to sell to Norges Bank, against all or part of the florin balances held by that Bank, gold to be set aside at De Nederlandsche Bank in Amsterdam.
Norges Bank shall have the right at any time to sell to De Nederlandsche Bank, against all or part of the Norwegian kroner balances held by that Bank, gold to be set aside at Norges Bank in Oslo.
Gold set aside in Oslo in accordance with the provisions of Article 2 and the present Article shall be at De Nederlandsche Bank's free disposal and may be exported.
Gold set aside in Amsterdam in accordance with the provisions of Article 2 and the present Article shall be at Norges Bank's free disposal and may be exported. Article 5.
De Nederlandsche Bank shall have the right at any time to invest all or part of the Norwegian kroner balances in excess of 5 million Norwegian kroner held by that Bank in Norwegian Treasury Bills at the current rate of discount.
Norges Bank shall have the right at any time to invest all or part of the florin balances in excess of 2.67 million florins held by that Bank in Netherlands Treasury Bills at the current rate of discount.
Article 6.
The Royal Netherlands Government shall not restrict the availability of florins at the disposal of residents of Norway for making—
a) transfers to other residents of Norway;
b) payments to residents of the Netherlands monetary area; or
c) transfers to residents of countries outside Norway and the Netherlands monetary area to the extent to which these may be authorized by the Royal Netherlands Government under the arrangements contemplated in Article 9 (III) hereof.
The Royal Norwegian Government shall not restrict the availability of Norwegian kroner at the disposal of residents of the Netherlands monetary area for making—
a) transfers to other residents of the Netherlands monetary area;
b) payments to residents of Norway; or
c) transfers to residents of countries outside the Netherlands monetary area and Norway to the extent to which these may be authorized by the Royal Norwegian Government under the arrangements contemplated in Article 9 (III) hereof.
Article 7.
If the rate of exchange between the Netherlands florin and the Norwegian krone is varied, the balances shall be compensated on the date of that modification at the rate of exchange previously in force.
If the resulting net balance is expressed in that currency the value of which has been reduced in relation to the other currency, the balance shall be readjusted by the debtor country in relation to the reduction of the value of its currency. Article 8.
The Contracting Governments shall co-operate with a view to assisting each other in keeping capital transactions within the scope of their respective policies, and in particular with a view to preventing transfers which do not serve direct and useful economic or commercial purposes.
Article 9.
(I) If, during the currency of this Agreement, either of the Contracting Governments adheres to a general international monetary agreement, the terms of the present Agreement shall be reviewed with a view to making any amendments that may be required.
(II) While the present Agreement continues in force, the Contracting governments shall co-operate to apply it with the necessary flexibility according to circumstances. De Nederlandsche Bank and Norges Bank, as agents of their respective Governments, will maintain contact on all technical questions arising out of the Agreement, and will collaborate closely on exchange control matters affecting the Netherlands monetary area and Norway.
(III) As opportunity offers, the Contracting Governments shall seek with the consent of the other interested parties.
a) to make Norwegian kroner at the disposal of residents of the Netherlands monetary area and florins at the disposal of residents of Norway available for making payments of a current nature to residents of countries outside the Netherlands monetary area and Norway, and
b) to enable residents of countries outside the Netherlands monetary area and Norway to use florins at their disposal to make payments of a current nature to residents of Norway and to use Norwegian kroner at their disposal to make payments of a current nature to residents of the Netherlands monetary area.
(IV) Notwithstanding that each of the Contracting Governments shall be alone responsible for its monetary relations with third parties, they shall maintain contact wherever the monetary relations of the one affects the interests of the other. Article 10.
For the purposes of this Agreement the expression "the Netherlands Monetary Area" shall include the following territories:
Netherlands Territory in Europe (the Netherlands), Islands of the Netherlands Archipelago in Asia (Netherlands Indies), and territories of Curaçao and Surinam.
Article 11.
Freights earned by Norwegian ships chartered by residents of the Netherlands, or freights earned by Dutch ships chartered by residents of Norway, other than freights for transport of goods between the two countries, shall only be settled according to the provisions of this Agreement when the freights are stipulated in Norwegian kroner of in Netherlands florins.
Article 12.
The present Agreement shall be valid for an indefinite period, but shall be subject to review and adjustment after mutual consultation. It shall come into force on the date of its signature. At any time thereafter either Contracting Government may give written notice to the other of its intention to terminate the Agreement and the Agreement shall cease to have effect three months after the date of such notice.
In the event of the termination of the Agreement, any net balance standing to the credit of one of the two Contracting Governments shall either be converted into Treasury Bills issued by the debtor country in the currency of the creditor country, or settled in any other manner upon which the two Governments agree. The Treasury Bills referred to above shall bear 3 per cent interest and be amortized in 3 equal annuities.
DONE in duplicate in Oslo this 6 day of November 1945.
| For the Royal Netherlands Government |
For the Royal Norwegian Government |
| (Signed) G. P. Luden | (Signed) Trygve Lie |