Chapter

SDR Department

Author(s):
International Monetary Fund
Published Date:
October 2010
Share
  • ShareShare
Show Summary Details

Statements of financial position at April 30, 2010, and 2009

(In millions of SDRs)

2010200920102009
AssetsLiabilities
Net charges and assessments receivable610Net interest payable610
Overdue charges and assessments (Note 4)14Participants with holdings above allocations (Note 5)
SDR holdings136,80115,568
Participants with holdings below allocations (Note 5)Less: allocations130,77810,553
Allocations73,20510,880
Less: SDR holdings63,6493,190Holdings in excess of allocations6,0235,015
Allocations in excess of holdings9,5567,690Participants with holdings held in escrow (Note 5)
Holdings by the General Resources Account2,6352,133
Total assets9,5627,714Holdings by prescribed holders898556
Total liabilities9,5627,714
The accompanying notes are an integral part of these financial statements.These financial statements were approved by the Managing Director and the Director of Finance on June 25, 2010.
/s/ Andrew Tweedie/s/ Dominique Strauss-Kahn
Director, Finance DepartmentManaging Director

Statements of comprehensive income for the years ended April 30, 2010, and 2009

(In millions of SDRs)

20102009
Revenue
Net charges from participants with holdings below allocations24138
Assessment on SDR allocations22
26140
Expenses
Interest on SDR holdings
Net interest to participants with holdings above allocations1591
General Resources Account733
Prescribed holders214
24138
Administrative expenses22
26140
Other comprehensive income
Net comprehensive income
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Statements of cash flows for the years ended April 30, 2010, and 2009

(In millions of SDRs)

20102009
Cash flows from operating activities
Receipts of SDRs
SDR allocations182,550
Transfers among participants and prescribed holders4,8852,094
Transfers from participants and prescribed holders to the General Resources Account918753
Transfers from the General Resources Account to participants and prescribed holders425518
Interest received:
Participants18118
General Resources Account846
Prescribed holders218
Total receipts of SDRs188,8063,547
Uses of SDRs
Transfers among participants and prescribed holders4,8852,094
Transfers from participants and prescribed holders to the General Resources Account918753
Transfers from the General Resources Account to participants and prescribed holders425518
Charges paid by participants28181
Other1
Total uses of SDRs6,2563,547
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the financial statements for for the years ended April 30, 2010, and 2009

1. Nature of operations

The Special Drawing Right (SDR) is an international interest-bearing reserve asset created by the IMF following the First Amendment of the Articles of Agreement in 1969. All transactions and operations involving SDRs are conducted through the SDR Department. The SDR may be allocated by the IMF, as a supplement to existing reserve assets, to members participating in the SDR Department. Its value as a reserve asset derives from the commitments of participants to hold and accept SDRs and to honor various obligations connected with the SDR’s proper functioning as a reserve asset.

The resources of the SDR Department are held separately from the assets of all the other accounts owned, or administered by, the IMF. They may not be used to meet the liabilities, obligations, or losses of the Fund incurred in the operations of the General Department or other accounts, except that the SDR Department reimburses the General Department for expenses incurred in conducting the business of the SDR Department.

At April 30, 2010, and 2009, all members of the IMF were participants in the SDR Department. SDRs have been allocated by the IMF to members that are participants in the SDR Department at the time of the allocation in proportion to their quotas in the IMF. Since the creation of the SDR, three general allocations and one special allocation have been made for a total of SDR 204.0 billion. The third general allocation was made during 2009 and the special allocation was made on September 9, 2009. Upon termination of participation in, or liquidation of, the SDR Department, the IMF will provide to holders the currencies received from the participants in settlement of their obligations. The IMF is empowered to prescribe certain official entities as holders of SDRs; at April 30, 2010, and 2009, 15 institutions were prescribed as holders. Prescribed holders do not participate in SDR allocations.

The SDR is also used by a number of international and regional organizations as a unit of account or as the basis for their units of account. Several international conventions also use the SDR as a unit of account, notably those expressing liability limits for the international transport of goods and services.

Uses of SDRs

Participants and prescribed holders can use and receive SDRs in transactions and operations by agreement among themselves. Participants can also use SDRs in operations and transactions involving the General Resources Account, such as the payment of charges and repurchases. By designating participants to provide freely usable currency in exchange for SDRs, the IMF ensures that a participant can use its SDRs to obtain an equivalent amount of currency if it has a need because of its balance of payments, its reserve position, or developments in its reserves.

General allocations and cancellations of SDRs

The IMF has the authority to provide unconditional liquidity through general allocations of SDRs to participants in the SDR Department in proportion to their quotas in the IMF. The IMF cannot allocate SDRs to itself or to other holders it prescribes. The Articles of Agreement also provide for cancellations of SDRs, although to date there have been no cancellations.

To provide liquidity to the global economic system and supplement member countries’ foreign exchange reserves, the Board of Governors of the IMF approved on August 7, 2009, a general allocation in the amount of SDR 161.2 billion, equivalent to US$250 billion. The general allocation was made on August 28, 2009, to IMF members that are participants in the SDR Department in proportion to their existing IMF quotas.

The Fourth Amendment to the IMF’s Articles of Agreement providing for a special one-time allocation of SDRs entered into force on August 10, 2009, when the Fund certified that at least three-fifths of the IMF membership (112 members) with 85 percent of the total voting power accepted it. The special allocation of SDR 21.5 billion was made to IMF members on September 9, 2009, and it increased members’ cumulative SDR allocations using a common benchmark ratio as described in the amendment. In accordance with the Fourth Amendment, SDRs allocated to participants with overdue obligations to the IMF have been deposited and held in an escrow account with the SDR Department and will be released to the participants upon the latter’s settlement of all overdue obligations (see Note 5).

In its decisions on general allocations of SDRs, the IMF, as prescribed under its Articles, has sought to meet the long-term global need to supplement existing reserve assets in such a manner as will promote the attainment of the IMF’s purposes and avoid economic stagnation and deflation, as well as excess demand and inflation.

2. Basis of preparation and measurement

The financial statements of the SDR Department are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The financial statements have been prepared under the historical cost convention. Specific accounting principles and disclosure practices, as set out below, are in accordance with and comply with IFRS and have been applied consistently for all periods presented.

New International Financial Reporting Standards and Interpretations

IFRS 9, “Financial Instruments” was issued in November 2009 as the first step in replacing the IAS 39, “Financial Instruments: Recognition and Measurement” standard. Under IFRS 9, financial assets currently in the scope of IAS 39 will be divided into two categories: those measured at amortized cost and those measured at fair value.

The effective date for mandatory adoption of IFRS 9 is January 1, 2013, but early adoption will be permitted. As the SDR Department measures financial assets only at amortized cost, the implementation of IFRS 9 is not expected to have an impact on the SDR Department’s financial position or results of operations.

Unit of account

The financial statements of the SDR Department are presented in SDRs. The U.S. dollar equivalent of the SDR is determined daily by the IMF by summing specific amounts of the four basket currencies (see below), in U.S. dollar equivalents on the basis of market exchange rates. The IMF reviews the SDR valuation basket at five-year intervals, and the current composition of the SDR valuation basket became effective on January 1, 2006.

The currencies in the basket at April 30, 2010, and 2009, and their specific amounts, relative to one SDR, were as follows:

CurrencyAmount
Euro0.4100
Japanese yen18.4000
Pound sterling0.0903
U.S. dollar0.6320

At April 30, 2010, one SDR was equal to US$1.51112 (one SDR was equal to US$1.49783 at April 30, 2009).

Use of estimates and judgment

The preparation of financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amount recognized in the financial statements are described in Note 3.

3. Summary of significant accounting and reporting policies

Interest and charges

Interest is paid on holdings of SDRs. Charges are levied on each participant’s net cumulative allocations plus any negative balance of the participant or unpaid charges. Interest and charges are levied at the same rate and are settled by crediting and debiting the appropriate individual holdings accounts. The SDR Department is required to pay interest to each SDR holder, whether or not sufficient SDRs are received to meet the payment of interest. If sufficient SDRs are not received because charges are overdue, additional SDRs are temporarily created.

The rate of interest on the SDR is determined by reference to the combined market interest rate, which is a weighted average of yields or rates on short-term instruments in the money markets of the Euro area, Japan, the United Kingdom, and the United States. The combined market interest rate is calculated each Friday, using the yields or rates of that day. The SDR interest rate, which is set equal to the combined market interest rate, enters into effect on the following Monday and applies through the subsequent Sunday. The average SDR interest rate was 0.29 percent for the financial year ended April 30, 2010 (1.80 percent for the financial year ended April 30, 2009).

Overdue obligations

An allowance for losses resulting from overdue SDR obligations would be created if the IMF expected a loss to be incurred; no losses have been incurred.

4. Overdue charges and assessments

At April 30, 2009, one member (Somalia) was six months or more overdue (since 1991) in meeting its financial obligations, amounting to SDR 14.1 million (none at April 30, 2010). Subsequent to the general allocation of SDRs to all participants in August 2009, Somalia settled its overdue financial obligations, which had previously been recognized as income.

5. Allocations and holdings

At April 30, 2010, net cumulative allocations to participants totaled SDR 204.0 billion (SDR 21.4 billion at April 30, 2009). Participants with holdings in excess of their allocations have established a net claim on the SDR Department, which is represented on the balance sheet as a liability. Participants with holdings below their allocations have used part of their allocations, resulting in a net obligation to the SDR Department presented as an asset. Participants’ net SDR positions at April 30, 2010, and 2009, were as follows:

20102009
TotalBelow allocationsAbove allocationsTotalBelow allocationsAbove allocations
(In millions of SDRs)
Cumulative allocations203,98373,205130,77821,43310,88010,553
Holdings of SDRs by participants200,45063,649136,80118,7583,19015,568
Net SDR positions3,5339,556(6,023)2,6757,690(5,015)

A summary of SDR holdings is provided below:

20102009
(In millions of SDRs)
Participants200,45018,758
General Resources Account2,6352,133
Prescribed holders898556
203,98321,447
Less: Overdue charges receivable14
Total holdings203,98321,433

In accordance with the provision of the Fourth Amendment of the IMF’s Articles of Agreement, SDRs held in escrow account on behalf of participants with overdue obligations amounted to SDR 86.7 million at April 30, 2010. These amounts offset allocations that would be released to the participants upon the settlement of overdue obligations. The amounts were as follows:

(In millions of SDRs)
Somalia4.2
Sudan16.1
Zimbabwe66.4
Total86.7

6. Related-party transactions and administrative expenses

The SDR Department conducts transactions with the General Department on the same terms and conditions applicable to participants and pre-scribed holders in the SDR Department. The General Resources Account’s holdings of SDRs amounted to SDR 2.6 billion at April 30, 2010 (SDR 2.1 billion at April 30, 2009).

The expenses of conducting the business of the SDR Department are paid by the IMF from the General Resources Account, which is reimbursed by the SDR Department at the end of each financial year (SDR 1.7 million and SDR 1.6 million for the financial years ended April 30, 2010, and 2009, respectively). For this purpose, the SDR Department levies an assessment on all participants in proportion to their net cumulative allocations.

Schedule 1: Statements of changes in SDR holdings for the years ended April 30, 2010, and 2009

(In millions of SDRs)

ParticipantsGeneral Resources AccountPrescribed holdersTotal
20102009
Total holdings, beginning of year18,7582,13355621,44721,447
Receipts of SDRs
SDR allocations182,550182,550
Transfers among participants and prescribed holders
Transactions by agreement3,7902204,0101,323
Operations
Settlement of financial obligations113
IMF-related operations
PRG Trust loans186186149
PRG Trust contributions and payments109257366248
PRG Trust repayments and interest298298337
PRG-HIPC Trust contributions and interest payments1161712
Emergency Assistance, SFF subsidy, and HIPC payments71719
Refunds, distributions, and other3
Net interest on SDRs18220136
Transfers from participants and prescribed holders to the General Resources Account
Repurchases1717213
Charges896896536
Interest on SDRs8846
Assessment on SDR Allocations222
Reimbursement of expenses by MDRI-I Trust332
Transfers from the General Resources Account to participants and prescribed holders
Purchases363649
In exchange for currencies of other members Acquisitions to pay charges252252248
Remuneration8888196
Interest on borrowings44
Refunds, distributions and other454525
Total receipts187,095926785188,8063,547
Uses of SDRs
Transfers among participants and prescribed holders
Transactions by agreement3,8821284,0101,323
Operations
Settlement of financial obligations113
IMF-related operations
PRG Trust loans186186149
PRG Trust contributions and interest payments257109366248
PRG Trust repayments and interest298298337
PRG-HIPC Trust contributions and interest payments6111712
Emergency Assistance, SFF subsidy and HIPC payments17719
Refunds, distributions, and other3
Transfers from participants and prescribed holders to the General Resources Account
Repurchases1717213
Charges896896536
Assessment on SDR allocations222
Reimbursement of expenses by MDRI-I Trust332
Transfers from the General Resources Account to participants and prescribed holders
Purchases363649
In exchange for currencies of other members Acquisitions to pay charges252252248
Remuneration8888196
Interest on borrowings44
Refunds, distributions and other454525
Charges paid in the SDR department
Net charges due2828182
Total uses5,3884254436,2563,547
Charges not paid when due01011
Settlement of unpaid charges and assessments(14)(14)(1)
Total holdings, end of year200,4502,635898203,98321,447
Totals may not add up due to rounding.

Less than SDR 500,000.

Totals may not add up due to rounding.

Less than SDR 500,000.

Schedule 2: Allocations and holdings of participants at April 30, 2010

(In millions of SDRs)

Holdings
ParticipantNet cumulative allocationsTotalPercent of cumulative allocations(+) Above

(-) Below allocations
Afghanistan, Islamic Republic of155.3128.582.7(26.9)
Albania46.546.6100.40.2
Algeria1,198.21,075.689.8(122.6)
Angola273.0271.099.3(2.0)
Antigua and Barbuda12.512.5100.11
Argentina2,020.02,022.2100.12.1
Armenia88.016.919.2(71.1)
Australia3,083.23,098.0100.514.8
Austria1,736.31,750.7100.814.4
Azerbaijan153.6153.6100.01
The Bahamas124.4114.291.8(10.2)
Bahrain124.4127.6102.63.3
Bangladesh510.4448.387.8(62.1)
Barbados64.456.387.5(8.0)
Belarus368.6377.6102.49.0
Belgium4,323.34,406.1101.982.8
Belize17.920.2112.62.3
Benin59.249.784.0(9.5)
Bhutan6.06.4107.20.4
Bolivia164.1164.9100.50.8
Bosnia and Herzegovina160.91.61.0(159.3)
Botswana57.492.9161.735.5
Brazil2,887.12,887.6100.00.5
Brunei Darussalam203.5216.3106.312.8
Bulgaria610.9610.9100.01
Burkina Faso57.648.183.5(9.5)
Burundi73.866.690.2(7.2)
Cambodia83.968.581.6(15.4)
Cameroon177.3155.587.7(21.8)
Canada5,988.15,876.598.1(111.6)
Cape Verde9.27.885.6(1.3)
Central African Republic53.42.95.3(50.5)
Chad53.62.85.2(50.8)
Chile816.9789.796.7(27.2)
China6,989.78,050.1115.21,060.5
Colombia738.3755.5102.317.2
Comoros8.56.778.4(1.8)
Congo, Democratic Republic of510.9380.974.6(129.9)
Congo, Republic of79.770.187.9(9.6)
Costa Rica156.5132.684.7(23.9)
Côte d’Ivoire310.9272.787.7(38.2)
Croatia347.3303.387.3(44.1)
Cyprus132.8119.489.9(13.4)
Czech Republic780.2794.5101.814.3
Denmark1,531.51,520.799.3(10.8)
Djibouti15.212.884.3(2.4)
Dominica7.86.988.6(0.9)
Dominican Republic208.8163.278.2(45.6)
Ecuador288.416.75.8(271.6)
Egypt898.5825.291.8(73.3)
El Salvador163.8163.399.7(0.5)
Equatorial Guinea31.325.982.9(5.4)
Eritrea15.23.624.1(11.5)
Estonia62.062.0100.10.1
Ethiopia127.917.413.6(110.5)
Fiji67.167.1100.01
Finland1,189.51,201.8101.012.3
France10,134.29,718.195.9(416.1)
Gabon146.7132.890.5(13.9)
Gambia, The29.824.682.7(5.2)
Georgia144.0145.6101.11.6
Germany12,059.212,185.4101.0126.2
Ghana353.9290.582.1(63.4)
Greece782.4694.288.7(88.1)
Grenada11.210.695.4(0.5)
Guatemala200.9173.786.5(27.2)
Guinea102.580.979.0(21.6)
Guinea-Bissau13.612.491.1(1.2)
Guyana87.12.42.8(84.6)
Haiti78.568.987.8(9.6)
Honduras123.8104.884.6(19.1)
Hungary991.1890.989.9(100.2)
Iceland112.288.879.2(23.4)
India3,978.33,296.582.9(681.8)
Indonesia1,980.41,762.589.0(218.0)
Iran, Islamic Republic of1,426.11,535.6107.7109.5
Iraq1,134.51,156.1101.921.7
Ireland775.4752.397.0(23.2)
Israel883.4792.389.7(91.1)
Italy6,576.16,011.991.4(564.2)
Jamaica261.6218.783.6(42.9)
Japan12,285.013,378.0108.91,093.0
Jordan162.1146.790.5(15.4)
Kazakhstan343.7344.6100.30.9
Kenya259.6220.384.8(39.4)
Kiribati5.35.3100.21
Korea2,404.42,454.8102.150.3
Kosovo, Republic of55.455.4100.01
Kuwait1,315.61,442.6109.7127.1
Kyrgyz Republic84.798.9116.714.1
Lao People’s Democratic Republic50.751.1100.80.4
Latvia120.8127.0105.16.2
Lebanon193.3209.6108.416.3
Lesotho32.929.288.7(3.7)
Liberia124.0128.5103.64.5
Libya1,072.71,604.1149.5531.4
Lithuania137.2137.3100.10.1
Luxembourg246.6243.398.6(3.4)
Macedonia, Former Yugoslav Republic of65.658.188.5(7.5)
Madagascar117.197.783.4(19.4)
Malawi66.41.21.8(65.2)
Malaysia1,346.11,355.1100.79.0
Maldives7.77.7100.70.1
Mali89.473.482.1(16.0)
Malta95.495.8100.40.4
Marshall Islands3.33.3100.01
Mauritania61.70.10.1(61.6)
Mauritius96.899.9103.23.1
Mexico2,851.22,807.298.5(44.0)
Federated States of Micronesia4.86.2129.01.4
Moldova117.70.20.2(117.5)
Mongolia48.848.499.2(0.4)
Montenegro, Republic of25.826.1101.30.3
Morocco561.4486.986.7(74.5)
Mozambique108.8108.799.8(0.2)
Myanmar245.82.20.9(243.6)
Namibia130.4130.4100.01
Nepal68.163.793.6(4.4)
Netherlands4,836.64,886.8101.050.1
New Zealand853.8854.7100.10.9
Nicaragua124.5104.984.2(19.6)
Niger62.954.386.3(8.6)
Nigeria1,675.41,518.090.6(157.3)
Norway1,563.11,600.4102.437.4
Oman178.8185.5103.86.7
Pakistan988.6876.088.6(112.6)
Palau3.03.0100.01
Panama197.0171.186.8(26.0)
Papua New Guinea125.5116.292.6(9.3)
Paraguay95.2110.4115.915.2
Peru609.9524.285.9(85.7)
Philippines838.0727.986.9(110.1)
Poland1,304.61,339.4102.734.7
Portugal806.5833.4103.326.9
Qatar251.4268.2106.716.8
Romania984.8862.287.6(122.6)
Russian Federation5,671.85,675.7100.13.9
Rwanda76.883.5108.76.7
St. Kitts and Nevis8.58.5100.01
St. Lucia14.615.4105.90.9
St. Vincent and the Grenadines7.90.89.5(7.2)
Samoa11.112.6113.61.5
San Marino15.516.7107.41.2
São Tomé and Príncipe7.16.591.3(0.6)
Saudi Arabia6,682.56,971.8104.3289.3
Senegal154.8130.484.2(24.4)
Serbia445.07.11.6(437.9)
Seychelles8.37.894.2(0.5)
Sierra Leone99.5121.0121.621.4
Singapore744.2980.6131.8236.4
Slovak Republic340.5341.6100.31.2
Slovenia215.9198.191.8(17.7)
Solomon Islands9.99.393.5(0.6)
Somalia46.518.640.0(27.9)
South Africa1,785.41,788.1100.22.7
Spain2,827.62,951.9104.4124.3
Sri Lanka395.57.51.9(388.0)
Sudan178.0125.770.6(52.3)
Suriname88.180.791.6(7.4)
Swaziland48.344.492.0(3.9)
Sweden2,249.02,287.5101.738.5
Switzerland3,288.03,425.2104.2137.1
Syrian Arab Republic279.2279.2100.01
Tajikistan82.169.885.1(12.2)
Tanzania190.5158.783.3(31.8)
Thailand970.3971.6100.11.3
Timor-Leste7.77.7100.01
Togo70.359.284.2(11.1)
Tonga6.67.1107.50.5
Trinidad and Tobago321.1275.585.8(45.6)
Tunisia272.8241.888.6(31.0)
Turkey1,071.3969.690.5(101.7)
Turkmenistan69.869.8100.01
Uganda173.1143.683.0(29.4)
Ukraine1,309.443.43.3(1,266.1)
United Arab Emirates568.4541.195.2(27.3)
United Kingdom10,134.29,149.690.3(984.6)
United States35,315.736,882.0104.41,566.3
Uruguay293.3245.683.8(47.6)
Uzbekistan262.8263.3100.20.5
Vanuatu16.31.69.7(14.7)
Venezuela2,543.32,239.788.1(303.5)
Vietnam314.8267.785.0(47.1)
Yemen, Republic of232.3191.182.3(41.1)
Zambia469.1406.786.7(62.5)
Zimbabwe272.2165.160.7(107.0)
Above allocations130,777.9136,801.3104.66,023.4
Below allocations73,205.663,649.186.9(9,555.5)
Total participants203,983.5200,450.4
Participants’ holdings held in escrow86.786.7
General Resources Account2,635.3
Prescribed holders897.9
Overdue charges
204,070.3204,070.3

Less than SDR 50,000.

Less than SDR 50,000.

    Other Resources Citing This Publication