Press Release: IMF Determines New Currency Amounts for SDR Valuation Basket
IMF News, December 30, 2010
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- Published: December 30, 2010
Revised currency amounts (effective January 1, 2011)
- The value of the SDR will be the sum of the values of the following amounts of each currency:
- U.S. dollar: 0.660
- Euro: 0.423
- Pound sterling: 0.111
- Japanese yen: 12.1
Weights and determination methodology
- The IMF previously determined the composition and weights of the SDR basket as:
- U.S. dollar: 41.9 percent
- Euro: 37.4 percent
- Pound sterling: 11.3 percent
- Japanese yen: 9.4 percent
- The precise fixed amounts of each currency in the basket were chosen so that:
- The value of the new and existing SDR baskets are the same on the last working day, December 30, 2010, before the new basket comes into effect on January 1, 2011.
- The actual share of each currency in the valuation of the SDR on any particular day depends on market values on that day of the fixed amounts of each currency in the basket.
SDR interest rate implications and timing
- The new SDR interest rate will:
- Be announced on January 7, 2011.
- Become effective on January 10, 2011.
- The new rate will reflect:
- The new valuation basket.
- The exchange rates and interest rates that prevail at the time of each weekly determination of the interest rate on the SDR.
- A discrete change in the level of the SDR interest rate may be expected on January 10, 2011, reflecting:
- The changes in the shares of currencies in the SDR valuation basket.
- The differences in the interest rates on each financial instrument in the basket.
Press Release No. 10/516 — December 30, 2010