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Jul 29, 2022

IMF determines new currency amounts for SDR valuation basket

Foreign Affairs News Desk

The International Monetary Fund (IMF) announced the new amounts for the five currencies that will determine the value of the SDR during the new valuation period that runs from August 1, 2022 until July 31, 2027.

According to the IMF release, the Executive Board of the IMF has decided that, effective August 1, 2022, the value of the SDR will be the sum of the values of the following amounts of each currency:

U.S. dollar 0.57813

Euro 0.37379

Chinese yuan 1.0993

Japanese yen 13.452

Pound sterling 0.080870

Today’s Board’s 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, concluded on May 11, 2022.

At that review, the IMF determined that the composition of the SDR basket and the weights assigned to each currency in the basket will be 43.38 per cent for the U.S. dollar, 29.31 per cent for the euro, 12.28 per cent for the Chinese renminbi, 7.59 percent for the Japanese yen, and 7.44 percent for the pound sterling.

The SDR interest rate that will be determined on August 5 and applied for the week of August 8, 2022 will be the first one that reflects the new SDR valuation basket. It will be based on the exchange rates and interest rates that will prevail at the time of its determination, and the above currency amounts, said the release.

The change in the SDR interest rate relative to the previous week will reflect the changes in the shares of currencies in the SDR valuation basket, as well as the changes in the interest rates on each financial instrument in the interest rate basket.

The currency amounts approved by the Executive Board have been calculated such that the value of the SDR in U.S. dollar terms is the same under the new basket as the value of the SDR prevailing today, and that, at the average exchange rates for the three-month period ending today (May 2 through July 29, 2022), the share of each currency in the value of the SDR corresponds to the weight approved by the IMF Executive Board on May 11, 2022, it reads.