IMF Finances

Special Drawing Rights Valuation

Special Drawing Rights -- A Factsheet

Note
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Illustrative Currency Amounts in New Special Drawing Rights (SDR) Basket


The IMF has announced that on January 1, 2006 changes in the method of valuation of the Special Drawing Right (SDR) will come into effect (Press Release No. 05/265). The weights assigned to each currency in the SDR basket have been adjusted to take account of changes in the share of each currency in world exports of goods and services and international reserves.

On December 30, 2005, the IMF will determine a fixed amount of each currency in the SDR basket based on the initial weights and exchange rates over the preceding three months. These amounts will produce a value of the SDR in terms of the U.S. dollar on that date that is the same under the current and new valuation methods. The IMF is providing interim calculations of the currency amounts every week for the remainder of this year based on exchange rates over the preceding three months to assist users of the SDR in preparing for the changeover to the new SDR valuation.

Illustrative Calculation of Currency Amounts
in the New SDR Basket

(as of December 30, 2005)

 

(1)

(2)

(3)

(4)

Currency

Initial new weight (share)

Illustrative currency amount1

 

Exchange Rate on 2 12/30/05

 

U.S. dollar equivalent

 

 

 

 

 

 

 

Euro

34

0.4100

 

1.18360

 

0.485276

 

Japanese yen

11

18.4000

 

117.57000

 

0.156503

 

Pound sterling

11

0.0903

 

1.72190

 

0.155488

 

U.S. dollar

44

0.6320

 

1.00000

 

0.632000

 

SDR1 = US$ 3

 

 

 

 

1.42927

 

1 Illustrative currency amounts are based on average exchange rates for a period from October 3 to December 30, 2005.

2 The exchange rate for the Japanese yen is expressed in terms of currency units per U.S. dollar; other rates are expressed as U.S. dollars per currency unit.

3 The value in U.S. dollars of one SDR, rounded to six significant digits.