View Full Version : IMF Determines New Currency Amounts for SDR Valuation Basket

12-30-2010, 02:26 PM
IMF Determines New Currency Amounts for SDR Valuation Basket

Press Release No. 10/516
December 30, 2010 The International Monetary Fund (IMF) announced today the revised amounts for the four currencies that determine the value of the Special Drawing Right (SDR). Effective January 1, 2011, the value of the SDR will be the sum of the values of the following amounts of each currency:
U.S. dollar
Pound sterling
Japanese yen
The decision on the amount of each currency in the SDR valuation basket is the final step implementing the results of the latest review of the method of valuation of the SDR (see Press Release No. 10/434 (http://www.imf.org/external/np/sec/pr/2010/pr10434.htm)). Previously, the IMF had determined that the composition of the SDR basket and the weights assigned to each currency would be 41.9 percent for the U.S. dollar, 37.4 percent for the euro, 11.3 percent for the pound sterling, and 9.4 percent for the Japanese yen. The precise amounts of each currency are determined so that the value of the new and existing SDR baskets are the same on the last working day, December 30, 2010, before the new basket comes into effect on January 1, 2011 (see SDR Valuation (http://www.imf.org/external/np/tre/sdr/basket.htm)1 and New SDR Basket (http://www.imf.org/external/np/tre/sdr/sdrbasket.htm)2). The actual share of each currency in the valuation of the SDR on any particular day depends on the market values on that day of the fixed amounts of each currency in the basket.
The new SDR interest rate, which will be announced on January 7, 2011, and become effective on January 10, 2011, will reflect the new valuation basket as well as the exchange rates and interest rates that prevail at the time of each weekly determination of the interest rate on the SDR. A discrete change in the level of the SDR interest rate may be expected on January 10, 2011, reflecting the changes in the shares of currencies in the SDR valuation basket and the differences in the interest rates on each financial instrument in the basket.
1 See http://www.imf.org/external/np/tre/sdr/basket.htm.
2 See http://www.imf.org/external/np/tre/sdr/sdrbasket.htm.


Public Affairs Media RelationsPhone:202-623-7300Phone:202-623-7100Fax:202-623-6278Fax:202-623-6772


12-30-2010, 09:28 PM
If I can speculate and go on the limb..This is probably what will determine the actual price of the R/V...Maybe a balance number pertaining to all four countries involved in the SDR basket..If there is one such country to join these big players,It would be IRAQ..not right away,but soon...Just a thought...