Press Release: IMF Incorporates the Euro into the SDR Valuation and Interest Rate Baskets
IMF News, December 31, 1998
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- Published: December 31, 1998
Summary of action and effective date
- The International Monetary Fund (IMF) has replaced the currency amounts of deutsche mark and French franc in the SDR valuation basket with equivalent amounts of euro.
- Replacement is based on the fixed conversion rates between the euro and the deutsche mark and French franc announced by the European Council.
- Effective January 1, 1999, the date of introduction of the single currency in the eleven countries initially participating in the Economic and Monetary Union, the value of the SDR will be the sum of the values of the following amounts of each currency.
Currency amounts in the SDR valuation basket (effective January 1, 1999)
- Euro (France): 0.1239
- Euro (Germany): 0.2280
- Japanese yen: 27.200
- Pound sterling: 0.1050
- U.S. dollar: 0.5821
- The currency amounts in the SDR basket have been rounded in line with the principles set out in the guidelines for the calculation of currency amounts in the SDR basket established by the IMF’s Executive Board.
- The value of the SDR in terms of currencies is the same today under both the existing (with deutsche mark and French franc) and revised (with euro) valuation baskets.
SDR interest rate basket: instruments and treatment
- Financial instruments comprising the SDR interest rate basket remain unchanged:
- Market yield of three-month treasury bills for France, the United Kingdom, and the United States.
- Three-month interbank deposit rate for Germany.
- Three-month rate on certificates of deposit in Japan.
- French and German instruments will be expressed in euro effective January 1, 1999.
- The SDR interest rate is determined weekly as a weighted average of interest rates on these five instruments, with weights reflecting the values of the currency amounts shown above.
Scheduled revisions
- In line with the currently effective decision on the SDR valuation basket:
- The next revision of the SDR basket will take place not later than 2000, with any changes to take effect on January 1, 2001.
- The SDR interest rate basket will be revised at the same time.
Additional information
- Further information on the SDR, its definition, valuation, interest rate and exchange rates can be found on the IMF’s Internet website (www.imf.org) under Fund Rates.
Press Release No. 98/67