Journal Issue
Share
Article

Effective January 1, 2001: IMF announces new valuation for SDR, modifies composition of basket

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
January 2000
Share
  • ShareShare
Show Summary Details

The IMF has announced that on January 1,2001, changes in the method of valuation of the Special Drawing Right (SDR) will come into effect (as announced in Press Release 00/55, October 12, available on the IMF’s website: www.imf.org). The composition of the SDR basket has been modified to reflect the introduction of the euro. The initial weights assigned to each currency in the basket have been adjusted to take account of changes in the share of each currency in world exports of goods and services and international reserves.

On December 29, 2000, the IMF will determine a fixed amount of each currency in the SDR basket based on the initial weights and exchange rates over the preceding three months. These amounts will produce a value of the SDR in terms of the U.S. dollar on that date that is the same under the current and new valuation methods. The IMF is providing interim calculations of the currency amounts every two weeks for the remainder of this year based on exchange rates over the preceding three months to assist users of the SDR in preparing for the changeover to the new SDR valuation.

Illustrative calculation of currency amounts in new SDR basket

(October 27, 2000)

(1)(2)(3)(4)
IllustrativeExchange
Initial newcurrencyrate1U.S. dollar
Currencyweight (share)amount10/27/00equivalent
Euro290.4310.83270.358893
Japanese yen1521.0108.50000.193548
Pound sterling110.09691.43460.139012
U.S. dollar450.5851.00000.585000
SDR1 = US$1.27645

The exchange rate for the Japanese yen is expressed in terms of currency units per U.S. dollar; other rates are expressed as U.S. dollars per currency unit.

The exchange rate for the Japanese yen is expressed in terms of currency units per U.S. dollar; other rates are expressed as U.S. dollars per currency unit.

Other Resources Citing This Publication