1. The excess amount of NIS, due to balance of payments flows, that the PMA will have the right to convert into foreign currency, will be equal to:
   
   
1. Estimates of all Israeli "imports" of goods and services from the Areas, valued at market prices ( inclusive of taxes ), which were paid for in NIS, less:
   
   
1. the taxes collected by the Palestinian Authority on all Israeli " imports " from the Areas and rebated to Israel in NIS, and
   
   
2. the taxes collected by Israel on all Israeli " imports " from the Areas and included in their market value, and not rebated to the Palestinian Authority,
   
   

minus

2. Estimates of all Israeli " exports " of goods and services to the Areas, valued at market prices ( inclusive of taxes ), which were paid for in NIS, less
   
   
1. the taxes collected by Israel on such " exports " and rebated to the Palestinian Authority, and
   
   
2. the taxes collected by the Palestinian Authority on such " exports " and included in their market value, and not rebated to Israel;
   
   

plus

3. The accumulated net amounts of foreign currency converted previously into NIS by the PMA, as recorded in the BOI Dealing Room.
   
   

2. The said flows and amounts will be calculated as of the date of the signing of the Agreement.
   
   

Notes to para 16:

1. The estimates of the said " exports and imports " of goods and services will include inter alia labor services, NIS expenditure of tourists and Israelis in the Areas and NIS expenditure of Palestinians of the Areas in Israel.
   
   
2. Taxes and pension contributions on " imports " of labor services, paid to " importing " side and rebated to the " exporting " one, will not be included in the estimates of the sums to be converted, as the "exports" earnings of labor services are recorded in the statistics inclusive of them, although they do not accrue to the individuals supplying them.
   
   

The PMA and the BOI will meet annually to discuss and determine the annual amount of convertible NIS during the following calendar year and will meet semi-annually to adjust the said amount. The amounts determined annually and adjusted semi - annually will be based on data and estimates regarding the past and on forecasts for the following period, according to the formula mentioned in para 16. The first meeting will be as soon as possible within three months after the date of the signing of the Agreement.

1. The exchange of foreign currency for NIS and vice - versa by the PMA will be carried out through the BOI Dealing Room, at the market exchange rates.
   
   
2. The BOI will not be obliged to convert in any single month more than 1/5 of the semi-

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