1. System transactions shall be settled only in a System currency.
2. Subject to [3. below], participants shall agree currency conversion arrangements between themselves as are necessary to effect settlement in respect of insurance transactions expressed in convertible currencies which are required to be settled under the System.
3. The Council may, but shall not be obliged to, prescribe the exchange rate to be used, and the procedures and requirements to be followed, for the conversion of amounts payable in respect of underlying insurance transactions expressed in a convertible currency into a System currency and for making adjustments to exchange rates.
4. The Council may on written notice to participants declare that a convertible currency is to become a System currency or declare that a System currency is no longer a System currency.