Chapter

Appendix A. Interim Valuation of the SDR: New Rule O-3

Author(s):
International Monetary Fund
Published Date:
January 1977
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1. Effective July 1, 1974, and subject to the addition of the amount of each currency listed in paragraph (a), which will be calculated in the manner set out in SM/74/142, dated June 13, 1974, on the last business day before this decision becomes effective, Rule O-3 of the Fund’s Rules and Regulations entitled “Exchange Rates” shall be amended to read as follows:

(a) For the purpose of determining the exchange rate in terms of special drawing rights for a currency provided in a transaction between participants or involved in a conversion associated with such a transaction one special drawing right shall be deemed to be equal to the sum of:

U.S. dollar0.40
Deutsche mark0.38
Pound sterling0.045
French franc0.44
Japanese yen26
Canadian dollar0.071
Italian lira47
Netherlands guilder0.14
Belgian franc1.6
Swedish krona0.13
Australian dollar0.012
Danish krone0.11
Norwegian krone0.099
Spanish peseta1.1
Austrian schilling0.22
South African rand0.0082

(b) One special drawing right in terms of the United States dollar shall be equal to the sum of the equivalents in United States dollars of the amounts of the currencies specified in (a) above, calculated on the basis of exchange rates established in accordance with procedures decided from time to time by the Fund.

(c) One special drawing right in terms of a currency other than the United States dollar shall be determined on the basis of the rate of the special drawing right in terms of the United States dollar as established in accordance with (b) above and an exchange rate for that currency determined as follows:

  • (i) for the currency of a member having an exchange market in which the Fund finds that a representative rate for spot delivery for the United States dollar can be readily ascertained, that representative rate;

  • (ii) for the currency of a member having an exchange market in which the Fund finds that a representative rate for spot delivery for the United States dollar cannot be readily ascertained but in which a representative rate can be readily ascertained for spot delivery for a currency as described in (i), the rate calculated by reference to the representative rate for spot delivery for that currency and the rate ascertained pursuant to (i) above for the United States dollar in terms of that currency;

  • (iii) for any other currency, a rate determined by the Fund.

2. Rule O-3 as amended by this decision shall be reviewed two years from the date of this decision.

Decision No. 4233-(74/67) S

June 13, 1974, as amended by

Decision No. 4261-(74/78) S

July 1, 1974

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