The IMF's Articles of Agreement requires a member to buy its own currency from other members who have acquired it as the result of "current transactions."

Question

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This is known as the "obligation to buy." It is outlined in Article VIII, Section 5 of the IMF's Articles of Agreement. It helps to promote stability in exchange rates and encourages countries to resolve their balance-of-payments problems through external adjustment rather than resorting to protectionist measures.

The IMF's Articles of Agreement Requires a Member to Buy