Information about Asia and the Pacific Asia y el Pacífico
Chapter

SDR Department

Author(s):
International Monetary Fund
Published Date:
October 2007
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Information about Asia and the Pacific Asia y el Pacífico
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Balance sheets as at April 30,2007 and 2006

(In thousands of SDRs)

20072006
Assets
Net charges receivable80,71670,217
Overdue assessments and charges (Note 3)40,53837,875
Participants with holdings below allocations (Note 2)
Allocations11,033,87712,477,679
Less: SDR holdings3,320,6994,253,303
Allocations in excess of holdings7,713,1788,224,376
7,834,4328,332,468
20072006
Liabilities
Net interest payable80,81670,419
Participants with holdings above allocations (Note 2)
SDR holdings15,109,39013,280,520
Less: allocations10,399,4538,955,651
Holdings in excess of allocations4,709,9374,324,869
Holdings by the General Resources Account2,597,5643,640,792
Holdings of SDRs by prescribed holders446,115296,388
Total liabilities7,834,4328,332,468
The accompanying notes are an integral part of these financial statements
The accompanying notes are an integral part of these financial statements
/s/ Michael G. Kuhn/s/ Rodrigo de Rato
Director, Finance DepartmentManaging Director

Income statements for the years ended April 30, 2007, and 2006

(In thousands of SDRs)

20072006
Revenue
Net charges from participants with holdings below allocations320,180245,826
Assessment on SDR allocations1,0351,200
321,215247,026
Expenses
Interest on SDR holdings
Net interest to participants with holdings above allocations180,493179,686
General Resources Account124,44458,340
Prescribed holders15,2437,800
320,180245,826
Administrative expenses1,0351,200
321,215247,026
Net 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, 2007, and 2006

(In thousands of SDRs)

20072006
Cash flows from operating activities
Receipts of SDRs
Transfers among participants and prescribed holders2,773,0684,142,521
Transfers from participants to the General Resources Account1,482,9935,835,916
Transfers from the General Resources Account to participants2,655,2792,800,779
Interest received by:
Participants167,681187,060
General Resources Account128,95331,345
Prescribed holders13,0477,094
Total receipts of SDRs7,221,02113,004,715
Uses of SDRs
Transfers among participants and prescribed holders2,773,0684,142,521
Transfers from participants to the General Resources Account1,482,9935,835,916
Transfers from the General Resources Account to participants2,655,2792,800,779
Charges paid by participants306,915223,593
Other2,7661,906
Total uses of SDRs7,221,02113,004,715
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 the years ended April 30, 2007, and 2006

1. Nature of operations

The International Monetary Fund (IMF) conducts its operations and transactions through the General Department and the Special Drawing Rights Department (the SDR Department). 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, essentially, from the commitments of participants to hold and accept SDRs and to honor various obligations connected with its proper functioning as a reserve asset.

The resources of the SDR Department are held separately from the assets of all the other accounts of, 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, 2007, 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. Six allocations have been made (in 1970, 1971, 1972, 1979, 1980, and 1981) for a total of SDR 21.4 billion. A proposed amendment of the IMF’s Articles of Agreement was approved by the Board of Governors in January 1998 to allow for a special one-time allocation of SDRs equal to SDR 21.4 billion. The amendment will enter into force after three-fifths of the members having 85 percent of the total voting power have accepted it. As of April 30, 2007, 131 members representing 77.64 percent of the total voting power have accepted the proposed amendment. 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, 2007, and 2006, 15 institutions were prescribed as holders. Prescribed holders do not receive 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 the cancellation of SDRs, although to date there have been no cancellations. 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. Summary of significant accounting policies

Basis of accounting

The financial statements of the SDR Department are prepared in accordance with International Financial Reporting Standards (IFRS). 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.

Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The determination of estimates requires the exercise of judgment based on various assumptions and other factors, such as historical experience and current and expected economic conditions. Actual results could differ from those estimates.

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Unit of account

The functional and presentation currency of the SDR Department is the SDR. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in November 2005 and the new composition of the SDR valuation basket became effective on January 1, 2006.

The currencies in the basket as of April 30, 2007, and 2006, and their amounts were as follows:

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

As of April 30, 2007, one SDR was equal to 1.52418 U.S. dollars (one SDR was equal to 1.47106 U.S. dollars as of April 30, 2006).

Allocations and holdings

At April 30, 2007, and 2006, net cumulative allocations to participants totaled SDR 21.4 billion. 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, which results in a net obligation to the SDR Department and is presented as an asset of the SDR Department. Participants’ net SDR positions as of April 30, 2007, and 2006 were as follows:

20072006
BelowAboveBelowAbove
TotalallocationsallocationsTotalallocationsallocations
(In millions of SDRs)
Cumulative
allocations21,433.311,033.910,399.421,433.312,477.78,955.6
Holdings of SDRs
by participants18,430.13,320.715,109.417,533.84,253.313,280.5
Net SDR positions3,00327,713.2(4,710.0)3,899.58,224.4(4,324.9)

A summary of SDR holdings is provided below:

20072006
(In millions of SDRs)
Participants18,430.117,533.8
General Resources Account2,597.53,640.8
Prescribed holders446.1296.5
21,473.721,471.1
Less: Overdue charges receivable40.437.8
Total holdings21,433.321,433.3

Interest and charges

Interest is paid on holdings of SDRs. Charges are levied on each participant’s net cumulative allocations plus any unpaid charges. Interest and charges are levied at the same rate and are settled by crediting and debiting the individual holdings accounts. The SDR Department is required to pay interest to each 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 capital 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 following Sunday. The average SDR interest rate was 3.97 percent for the financial year ended April 30, 2007 (2.92 percent for the financial year ended April 30, 2006)

Administrative expenses

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. For this purpose, the SDR Department levies an assessment on all participants in proportion to their net cumulative allocations (SDR 1.0 million and SDR 1.2 million for the financial years ended April 30, 2007, and 2006, respectively).

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, or are expected to be, incurred.

3. Overdue assessments and charges

At April 30, 2007, assessments and charges amounting to SDR 40.5 million were overdue to the SDR Department (SDR 37.8 million at April 30, 2006). At April 30, 2007, two members were six months or more overdue in meeting their financial obligations to the SDR Department (three members were overdue as at April 30, 2006).

Assessments and charges due from members that are six months or more overdue to the SDR Department were as follows as of April 30:

20072006
(In millions of SDRs)
Total40.537.8
Overdue for six months or more39.036.8
Overdue for three years or more34.533.5

The amount and duration of arrears as of April 30, 2007, were as follows:

TotalLongest overdue

obligation
(In millions of SDRs)
Liberia28.1April 1986
Somalia12.4February 1991
Total40.5

Statements of changes in SDR holdings for the years ended April 30, 2007, and 2006

(In thousands of SDRs)

General
ResourcesPrescribedTotal
ParticipantsAccountholders20072006
Total holdings, beginning of the year17,533,8233,640,792296,38821,471,00321,469,097
Receipts of SDRs
Transfers among participants and prescribed holders
Transactions by agreement1,998,441301,2732,299,7143,497,443
Operations
Settlement of financial obligations44925,58126,03043,782
IMF-related operations
SAF/PRGF-ESF Trust loans83,85483,85438,473
SAF repayments and interest1,549
PRGF-ESF Trust contributions and payments37,65932,50870,167180,627
PRGF-ESF Trust repayments and interest274,733274,733367,069
PRGF-HIPC contributions1,265111,2762,306
Emergency Assistance subsidy payments6,4506,4504,572
Net interest on SDRs167,68113,047180,728194,154
MDRI grant assistance10,84410,8446,700
Transfers from participants to the General Resources Account
Repurchases202,487202,4873,791,600
Charges870,323870,3232,043,118
Quota payment409,150409,150
Assessment on SDR allocations (Note 2)1,0331,0331,198
Interest on SDRs128,953128,95331,345
Transfers from the General Resources Account to participants
Purchases1,479,9241,479,924437,046
In exchange for currencies of other members
Acquisitions to pay charges662,644662,6441,393,573
Remuneration498,062498,062903,429
Other
Refunds and adjustments14,64914,64966,731
Total receipts4,961,9221,611,946647,1537,221,02113,004,715
Uses of SDRs
Transfers among participants and prescribed holders
Transactions by agreement1,942,810356,9042,299,7143,497,443
Operations
Settlement of financial obligations25,58144926,03043,782
IMF-related operations
SAF/PRGF-ESF Trust loans83,85483,85438,473
SAF repayments and interest1,549
PRGF-ESF Trust contributions and payments32,50837,65970,167180,627
PRGF-ESF Trust repayments and interest274,733274,733367,069
PRGF-HIPC contributions111,2651,2762,306
Emergency Assistance subsidy payments6,4506,4504,572
MDRI grant assistance10,84410,8446,700
Transfers from participants to the General Resources Account
Repurchases202,487202,4873,791,600
Charges870,323870,3232,043,118
Quota payment409,150409,150
Assessment on SDR allocations (Note 2)1,0331,0331,198
Transfers from the General Resources Account to participants
Purchases1,479,9241,479,924437,046
In exchange for currencies of other members
Acquisitions to pay charges662,644662,6441,393,573
Remuneration498,062498,062903,429
Other
Refunds and adjustments14,64914,64966,731
Charges paid in the SDR Department
Net charges due309,681309,681225,499
Total uses4,068,3172,655,279497,4257,221,02113,004,715
Charges not paid when due2,7662,7662,021
Settlement of unpaid charges and assessments(105)105(115)
Total holdings, end of the year18,430,0892,597,564446,11521,473,76821,471,003
The ending balances contain rounding.
The ending balances contain rounding.

Allocations and holdings of participants as at April 30, 2007

(In thousands of SDRs)

Holdings
NetPercent of(+) Above
cumulativecumulative(-) Below
ParticipantallocationsTotalallocationsallocations
Afghanistan, Islamic Republic of26,7031,0604.0(25,643)
Albania5,7365,736
Algeria128,6402,3761.8(126,264)
Angola157157
Antigua and Barbuda66
Argentina318,370320,554100.72,184
Armenia5,6125,612
Australia470,545130,44827.7(340,097)
Austria179,045129,68672.4(49,359)
Azerbaijan1,2121,212
Bahamas, The10,2301361.3(10,094)
Bahrain6,2004,42771.4(1,773)
Bangladesh47,1205231.1(46,597)
Barbados8,0391001.2(7,939)
Belarus2525
Belgium485,246360,36574.3(124,881)
Belize1,9861,986
Benin9,4091201.3(9,289)
Bhutan344344
Bolivia26,70326,61799.7(86)
Bosnia and Herzegovina20,4814772.3(20,004)
Botswana4,35937,292855.532,933
Brazil358,6704,4161.2(354,254)
Brunei Darussalam11,46611,466
Bulgaria3,0813,081
Burkina Faso9,409600.6(9,349)
Burundi13,6971771.3(13,520)
Cambodia15,4172671.7(15,150)
Cameroon24,4633,07712.6(21,385)
Canada779,290641,72782.3(137,563)
Cape Verde62091.4(611)
Central African Republic9,3253,07633.0(6,249)
Chad9,40999010.5(8,419)
Chile121,92435,56329.2(86,361)
China236,800719,019303.6482,219
Colombia114,271131,060114.716,789
Comoros716172.3(700)
Congo, Democratic Republic of the86,3091,1841.4(85,125)
Congo, Republic of9,7191251.3(9,594)
Costa Rica23,7261490.6(23,577)
Côte d’Ivoire37,8284331.1(37,395)
Croatia44,2056551.5(43,550)
Cyprus19,4382,62513.5(16,813)
Czech Republic11,56611,566
Denmark178,864218,518122.239,654
Djibouti1,178181.6(1,160)
Dominica5926611.1(527)
Dominican Republic31,58533,522106.11,937
Ecuador32,9297062.1(32,223)
Egypt135,92483,38961.4(52,535)
El Salvador24,98524,977100.0(8)
Equatorial Guinea5,8124407.6(5,372)
Eritrea
Estonia5858
Ethiopia11,1601361.2(11,024)
Fiji6,9586,04986.9(909)
Finland142,690128,45890.0(14,232)
France1,079,870631,16858.4(448,702)
Gabon14,0918436.0(13,248)
Gambia, The5,1212384.7(4,883)
Georgia1,6651,665
1,210,7601,346,159111.2135,399
Ghana62,9838371.3(62,146)
Greece103,54419,22518.6(84,319)
Grenada9309810.6(832)
Guatemala27,6783,50612.7(24,172)
Guinea17,6042,82216.0(14,782)
Guinea-Bissau1,212907.4(1,122)
Guyana14,5309176.3(13,613)
Haiti13,6975,09437.2(8,603)
Honduras19,0572291.2(18,828)
Hungary50,23850,238
Iceland16,4091360.8(16,273)
India681,1707,1431.0(674,027)
Indonesia238,95610,6034.4(228,353)
Iran, Islamic Republic of244,056276,069113.132,013
Iraq68,464290,488424.3222,024
Ireland87,26363,39672.6(23,867)
Israel106,36012,32611.6(94,034)
Italy702,400187,69626.7(514,704)
Jamaica40,6135681.4(40,045)
Japan891,6901,869,437209.7977,747
Jordan16,8873,23519.2(13,652)
Kazakhstan846846
Kenya36,9906991.9(36,291)
Kiribati1111
Korea72,91138,39352.7(34,518)
Kuwait26,744140,034523.6113,290
Kyrgyz Republic16,26216,262
Lao People’s Democratic Republic9,4099,779103.9370
Latvia106106
Lebanon4,39323,271529.718,878
Lesotho3,7391303.5(3,609)
Liberia21,007(21,007)
Libya58,771531,762904.8472,991
Lithuania6868
Luxembourg16,95512,41373.2(4,542)
Macedonia, former Yugoslav Republic of8,3793,79145.3(4,587)
Madagascar19,2702491.3(19,021)
Malawi10,9753463.1(10,629)
Malaysia139,048143,057102.94,009
Maldives282342121.160
Mali15,9121571.0(15,755)
Malta11,28834,630306.823,342
Marshall Islands
Mauritania9,7191321.4(9,587)
Mauritius15,74418,385116.82,641
Mexico290,020322,380111.232,360
Micronesia, Federated States of1,3051,305
Moldova374374
Mongolia55
Montenegro
Morocco85,68927,71732.3(57,972)
Mozambique153153
Myanmar43,4745901.4(42,884)
Namibia1919
Nepal8,1055,97573.7(2,129)
Netherlands530,340558,755105.428,415
New Zealand141,32221,24015.0(120,082)
Nicaragua19,4832641.4(19,219)
Niger9,409730.8(9,336)
Nigeria157,1551,9651.3(155,190)
Norway167,770263,774157.296,004
Oman6,26211,312180.65,050
Pakistan169,989142,58383.9(27,406)
Palau
Panama26,3226302.4(25,692)
Papua New Guinea9,3001461.6(9,154)
Paraguay13,69792,577675.978,880
Peru91,3192,5792.8(88,740)
Philippines116,5951,1181.0(115,477)
Poland60,48360,483
Portugal53,32076,082142.722,762
Qatar12,82227,171211.914,350
Romania75,9502,0772.7(73,873)
Russian Federation4,7994,799
Rwanda13,69715,203111.01,506
St. Kitts and Nevis22
St. Lucia7421,560210.4819
St. Vincent and the Grenadines354(354)
Samoa1,1422,531221.61,389
San Marino839839
São Tomé and Príncipe620386.2(582)
Saudi Arabia195,527433,539221.7238,013
Senegal24,4623181.3(24,144)
Serbia56,6652,2474.0(54,418)
Seychelles40671.8(399)
Sierra Leone17,45519,459111.52,004
Singapore16,475213,0911,293.4196,616
Slovak Republic942942
Slovenia25,4318,22632.3(17,204)
Solomon Islands65471.1(647)
Somalia13,697(13,697)
South Africa220,360222,959101.22,599
Spain298,805219,55573.5(79,250)
Sri Lanka70,8681,8452.6(69,023)
Sudan52,1925931.1(51,599)
Suriname7,75077210.0(6,978)
Swaziland6,4322,49338.8(3,939)
Sweden246,525264,178107.217,653
Switzerland175,513175,513
Syrian Arab Republic36,56436,573100.09
Tajikistan2,3672,367
Tanzania31,3725211.7(30,851)
Thailand84,6523650.4(84,287)
Timor-Leste
Togo10,9751201.1(10,855)
Tonga358358
Trinidad and Tobago46,2311,7193.7(44,512)
Tunisia34,2431,2623.7(32,981)
Turkey112,307114,238101.71,931
Turkmenistan
Uganda29,3963551.2(29,041)
Ukraine7,3707,370
United Arab Emirates38,7378,39621.7(30,341)
United Kingdom1,913,070244,68112.8(1,668,389)
United States4,899,5305,924,533120.91,025,003
Uruguay49,9776801.4(49,297)
Uzbekistan1212
Vanuatu1,1091,109
Venezuela316,8901,1190.4(315,771)
Vietnam47,6581,4343.0(46,224)
Yemen, Republic of28,7437,00724.4(21,736)
Zambia68,2988,25312.1(60,045)
Zimbabwe10,2001201.2(10,080)
Above allocations10,399,45315,109,390145.34,709,937
Below allocations11,033,8773,320,69930.17,713,178
Total participants21,433,33018,430,089
General Resources Account2,597,564
Prescribed holders446,115
Overdue charges40,438
21,473,76821,473,768
The ending balances contain rounding.
The ending balances contain rounding.

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