News Brief

The International Monetary Fund (IMF) began today publishing its calculation of the Special Drawing Right (SDR) interest rate via the IMF's web site. The SDR interest rate is the basis for the calculation of the rate of remuneration on members' reserve tranche positions in the Fund and the rate of charge on the use of Fund credit in the General Resources Account.

The SDR interest rate, which is calculated on the basis of a weighted average of interest rates on short-term instruments in the financial markets of the currencies included in the SDR valuation basket, will be posted on the IMF website every Monday. The SDR interest rate is calculated for a period of one week beginning each Monday using data as of the Friday preceding each weekly period.

The method for determining the SDR interest rate is reviewed every five years in conjunction with the review of the valuation of the SDR. The latest five-yearly review was completed on October 12, 2000, and as of January 8, 2001 the rates used in the calculation of the SDR interest rate are: three-month Euribor (Euro Interbank Offered Rate), the yield on Japanese Government 13-week financing bills, the yield on three-month U.K. Treasury bills and the yield on three-month U.S. Treasury bills.

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