SDR Currency Basket-Proposed Extension of the Valuation of the SDR

This paper proposes an extension of the current SDR valuation basket for a period of nine months to September 30, 2016. This extension would respond to feedback from SDR users on the desirability of avoiding changes in the basket at the end of the calendar year and facilitate the continued smooth functioning of SDR-related operations. As discussed at the informal Board meeting on July 29, this proposal does not in any way prejudge the outcome of the Review of the Method of Valuation of the SDR.

Abstract

This paper proposes an extension of the current SDR valuation basket for a period of nine months to September 30, 2016. This extension would respond to feedback from SDR users on the desirability of avoiding changes in the basket at the end of the calendar year and facilitate the continued smooth functioning of SDR-related operations. As discussed at the informal Board meeting on July 29, this proposal does not in any way prejudge the outcome of the Review of the Method of Valuation of the SDR.

Proposed Decision

The following decision, which may be adopted by a 70 percent majority of the total voting power, is proposed for adoption of the Executive Board:

Notwithstanding Paragraphs 2 and 4 of Executive Board Decision No. 12281-(00/98), adopted October 11, 2000, the SDR valuation basket determined under Executive Board Decisions No. 14769-(10/110) G/S, adopted November 15, 2010 and No. 14821-(11/1), adopted December 30, 2010, shall remain effective through September 30, 2016.

1

Decision No. 14769-(10/110) GS, adopted November 15, 2010.

3

The term “SDR user” refers to both the participants and prescribed holders in the SDR Department regarding their use of official SDRs, and to the use by third parties of the SDR as a unit of account or other reference, for example, deposits denominated in SDR or investment products based on the SDR basket composition.

SDR Currency Basket—Proposed Extension of the Valuation of the SDR
Author: International Monetary Fund