Press Release – IMF Determines New Currency Amounts for the SDR Valuation Basket
IMF News, July 29, 2022
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- Published: July 29, 2022
Executive Board decision
- The IMF Executive Board approved new amounts for the five currencies that will determine the value of the Special Drawing Right (SDR) for a five-year period.
- Effective date of the new valuation period: August 1, 2022 until July 31, 2027.
- The Board’s decision completes the final step in implementing the results of the latest review of the method of valuation of the SDR concluded on May 11, 2022.
Currency amounts in the SDR valuation basket (effective August 1, 2022)
- The value of the SDR will be the sum of the values of the following amounts of each currency:
- U.S. dollar: 0.57813
- Euro: 0.37379
- Chinese yuan: 1.0993
- Japanese yen: 13.452
- Pound sterling: 0.080870
Weights assigned at the May 11, 2022 review
- The IMF determined the composition of the SDR basket and the weights assigned to each currency as:
- U.S. dollar: 43.38 percent
- Euro: 29.31 percent
- Chinese renminbi: 12.28 percent
- Japanese yen: 7.59 percent
- Pound sterling: 7.44 percent
SDR interest rate implications
- The SDR interest rate that will be determined on August 5 and applied for the week of August 8, 2022 will be the first one that reflects the new SDR valuation basket.
- That SDR interest rate will be based on:
- the exchange rates and interest rates that will prevail at the time of its determination, and
- the above currency amounts.
- The change in the SDR interest rate relative to the previous week will reflect:
- the changes in the shares of currencies in the SDR valuation basket, and
- the changes in the interest rates on each financial instrument in the interest rate basket.
Footnote on calculation of currency amounts
- The currency amounts approved by the Executive Board have been calculated such that:
- the value of the SDR in U.S. dollar terms is the same under the new basket as the value of the SDR prevailing today, and
- at the average exchange rates for the three-month period ending today (May 2 through July 29, 2022), the share of each currency in the value of the SDR corresponds to the weight approved by the IMF Executive Board on May 11, 2022.
Press Release – IMF Determines New Currency Amounts for the SDR Valuation Basket, July 29, 2022.
