Press Release No. 98/45

The International Monetary Fund (IMF) has decided that, after the launch of the Economic and Monetary Union in Europe on January 1, 1999, the euro will replace the current currency amounts of the Deutsche mark and the French franc in the SDR valuation basket, which also includes the currencies of Japan, the United Kingdom, and the United States. The specific amounts of euro in the valuation basket, which will replace the Deutsche mark and the French franc, respectively, will be announced by the IMF promptly following the announcement of the conversion rates between the euro and the Deutsche mark and the French franc by the European Council. The financial instruments in the SDR interest rate basket--the market yield of three-month treasury bills for France, the United Kingdom, and the United States, the three-month interbank deposit rate for Germany, and the three-month rate on certificates of deposit in Japan--will remain unchanged, although the French and German instruments will be expressed in euro. In line with the currently effective decision on the SDR valuation and interest rate baskets, the next revision of the SDR will take place not later than 2000, with any changes to take effect on January 1, 2001.

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.