- Total resources
The largest component of the IMF’s resources is its holdings of members’
currencies (currently SDR 145.8 billion). Under the Articles of Agreement, the IMF’s gold
is valued at SDR 35 per ounce and thus gold holdings amount to SDR 3.6 billion. (At the market
price on October 30, 1998—US$293.10 a fine ounce—the holdings would be valued at
SDR 21.5 billion, about US$30 billion.) The IMF’s holdings of gold are not readily usable
because a decision to sell gold requires a majority of 85 percent of the total voting power in the
Executive Board. Holdings of SDRs currently amount to SDR 1.2 billion; "other
assets" (SDR 0.3 billion) reflects sundry assets (such as building and receivables) net of
sundry payables. In addition to the IMF’s own resources, SDR 4.9 billion are currently
available under the activation of the General Arrangements to Borrow (GAB) agreed on July 20,
1998.
- Non-usable resources
Resources that are considered non-usable to finance the IMF’s ongoing operations and
transactions are (i) its holdings of gold, (ii) the currencies of members that are using IMF
resources and are therefore, by definition, in a weak balance of payments or reserve position, (iii)
the currencies of other members with relatively weak external positions, and (iv) the "other
assets" noted above. The use of IMF credit by a member increases the IMF’s
non-usable resources and reduces its usable resources by equivalent amounts.
- Usable resources
These consist of (i) holdings of the currencies of members considered by the Executive Board to
have a sufficiently strong balance of payments and reserve position for their currencies to be used
in transactions, (ii) holdings of SDRs, and (iii) any unused amounts under credit lines already
activated (such as under the GAB). Amounts committed under arrangements, which reflect
undrawn balances committed under operative stand-by and extended arrangements, other than
precautionary arrangements, are deducted from the total of usable resources, as are one-half of
the amounts committed under precautionary arrangements. Minimum working balances required
for the IMF to be able to make payments that must be made in specified currencies are also
deducted. The Executive Board has decided that such balances be set at 10 percent of the quotas
of members deemed sufficiently strong for their currencies to be used.
- Net uncommitted usable resources
(resources available to
meet reserve tranche purchases and new commitments)
Currently usable resources minus resources already committed under existing
arrangements and working balances as described above. This amount represents the resources
available to meet requests for use of reserve positions in the IMF and new requests for use of
IMF resources (see footnote to table).
- Balances available under the General Arrangements to Borrow
(GAB) and the Associated Agreement with Saudi Arabia
The IMF since October 1962 has entered into General Arrangements to Borrow (GAB) from the
major industrial countries. Under the GAB, which have 11 adherents, and the Associated
Agreement with Saudi Arabia, the IMF can borrow a total of up to SDR 18.5 billion when
supplementary resources are needed to forestall or cope with an impairment of the international
monetary system. The GAB were activated in July 1998 for an amount of SDR 6.3 billion (of
which SDR 1.4 billion has been drawn), leaving up to SDR 12.2 billion potentially available to
the IMF under the remaining credit lines.
- Liquid liabilities
The IMF’s liquid liabilities consist of (i) reserve tranche positions of members, which a
member acquires when the IMF uses the member’s currency in its operations and through
reserve assets paid by the member in connection with quota payments, and (ii) the amount of
outstanding borrowing by the IMF, e.g., under the GAB. Both reserve tranche positions and
outstanding lending under the GAB (together called reserve positions of members in the IMF) are
part of members’ international reserves. The Fund cannot challenge a request by a member
to draw on its reserve position in the IMF when developments in its balance of payments or its
reserve position make this necessary and the IMF must be in a position to meet such requests. At
present, reserve tranche positions amount to SDR 56.5 billion, and outstanding borrowing under
the GAB amounts to SDR 1.4 billion (out of total authorized calls of SDR 6.3 billion). The vast
bulk of liquid liabilities reflects credit extended by the Fund, amounting to SDR 57.1 billion on
October 31, 1998.
- Liquidity ratio
The liquidity ratio is a measure of the IMF’s liquidity position, represented by the ratio of
its net uncommitted usable resources to its liquid liabilities.
