- Total resources
The largest component of the IMF’s resources is its holdings of members’
currencies (currently SDR 145.9 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 November 30, 1998—US$295.75 a fine ounce—the holdings would be valued
at SDR 22.2 billion, about US$31 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 1.3 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/NAB). 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
New Arrangements to Borrow (NAB)
The IMF since October 1962 has entered into General Arrangements to Borrow (GAB) from the
major industrial countries. Under the GAB, which has 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). In November 1998 the New Arrangements to Borrow
(NAB) entered into effect. The NAB, which has 25 participants, does not replace the GAB. The
total amount of resources available to the IMF under the NAB and GAB combined will be up to
SDR 34 billion. The NAB will be the first and principal recourse in the event of a need to
provide supplementary resources to the Fund.
- 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/NAB. Both reserve tranche positions and
outstanding lending under the GAB/NAB (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 57.1 billion, and outstanding
borrowing, under the GAB, amounts to SDR 1.4 billion (out of total authorized calls of SDR 6.3
billion). No amount is outstanding under the NAB. The vast bulk of liquid liabilities reflects
credit extended by the Fund, amounting to SDR 57.7 billion on November 30, 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.
