Chapter

SDR Department

Author(s):
International Monetary Fund
Published Date:
September 2009
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Statements of financial position at April 30, 2009, and 2008

(In millions of SDRs)

20092008
Assets
Net charges and assessments receivable1054
Overdue charges and assessments (Note 4)1413
Participants with holdings below allocations (Note 5)
Allocations10,88011,291
Less: SDR holdings3,1903,597
Allocations in excess of holdings7,6907,694
Total assets7,7147,761
Liabilities
Net interest payable1054
Participants with holdings above allocations (Note 5)
SDR holdings15,56814,995
Less: allocations10,55310,142
Holdings in excess of allocations5,0154,853
Holdings by the General Resources Account2,1331,852
Holdings by prescribed holders5561,002
Total liabilities7,7147,761
The accompanying notes are an integral part of these financial statements.These financial statements were approved by the Managing Director and the Director of Finance on June 30, 2009.
The accompanying notes are an integral part of these financial statements.These financial statements were approved by the Managing Director and the Director of Finance on June 30, 2009.
/s/ Andrew Tweedie/s/ Dominique Strauss-Kahn
Director, Finance DepartmentManaging Director

SDR Department: Statements of comprehensive income for the years ended April 30, 2009, and 2008

(In millions of SDRs)

20092008
Revenue
Net charges from participants with holdings below allocations138285
Assessment on SDR allocations22
140287
Expenses
Interest on SDR holdings
Net interest to participants with holdings above allocations91176
General Resources Account3388
Prescribed holders1421
138285
Administrative expenses22
140287
Other comprehensive income
Net comprehensive income
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

SDR Department: Statements of cash flows for the years ended April 30, 2009, and 2008

(In millions of SDRs)

20092008
Cash flows from operating activities
Receipts of SDRs
Transfers among participants and prescribed holders2,0943,549
Transfers from participants and prescribed holders to the General Resources Account7531,287
Transfers from the General Resources Account to participants and prescribed holders5182,133
Interest received:
Participants118191
General Resources Account46101
Prescribed holders1820
Total receipts of SDRs3,5477,281
Uses of SDRs
Transfers among participants and prescribed holders2,0943,549
Transfers from participants and prescribed holders to the General Resources Account7531,287
Transfers from the General Resources Account to participants and prescribed holders5182,133
Charges paid by participants181309
Other13
Total uses of SDRs3,5477,281
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

SDR Department: Notes to the financial statements for the years ended April 30, 2009, and 2008

1. Nature of operations

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 from the commitments of participants to hold and accept SDRs and to honor various obligations connected with the SDR’s proper functioning as a reserve asset.

The resources of the SDR Department are held separately from the assets of all the other accounts owned, 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, 2009, and 2008, 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. 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, 2009, and 2008, 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.

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. At April 30, 2009, 131 out of 185 members representing 77.7 percent of the total voting power have accepted the proposed amendment.

In April 2009, the International Monetary and Financial Committee of the IMF’s Board of Governors called on the IMF to strengthen the global financial safety net in view of the current crisis. The Committee supports the rapid approval by the IMF membership of a general allocation of SDRs equivalent to US$250 billion, to become effective before the 2009 Annual Meetings in October 2009. Adoption of the Board of Governor’s resolution to allocate SDRs requires an 85 percent majority of the total voting power of members that are participants in the SDR Department.

2. Basis of preparation and measurement

The financial statements of the SDR Department are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The financial statements have been prepared under the historical cost convention. 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.

New International Financial Reporting Standards and Interpretations

During the financial year ended April 30, 2009, the financial statements of the SDR Department were prepared in accordance with Revised IAS 1, “Presentation of Financial Statements.” Revised IAS 1 requires presentation of non-owner changes in equity (comprehensive income) either in one statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income). The Revised IAS 1 did not have a significant impact on the presentation of the financial statements.

Unit of account

The financial statements of the SDR Department are presented in 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 current composition of the SDR valuation basket became effective on January 1, 2006.

The currencies in the basket at April 30, 2009, and 2008, and their amounts were as follows:

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

At April 30, 2009, one SDR was equal to US$1.49783 (one SDR was equal to US$1.62378 at April 30, 2008).

Use of estimates and judgment

The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amount recognized in the financial statements are described in Note 3.

3. Summary of significant accounting and reporting policies

Interest and charges

Interest is paid on holdings of SDRs. Charges are levied on each participant’s net cumulative allocations plus any negative balance of the participant and unpaid charges. Interest and charges are levied at the same rate and are settled by crediting and debiting the appropriate individual holdings accounts. The SDR Department is required to pay interest to each SDR 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 money 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 subsequent Sunday. The average SDR interest rate was 1.80 percent for the financial year ended April 30, 2009 (3.64 percent for the financial year ended April 30, 2008).

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 (SDR 1.6 million and SDR 1.5 million for the financial years ended April 30, 2009, and 2008, respectively). For this purpose, the SDR Department levies an assessment on all participants in proportion to their net cumulative allocations.

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 incurred.

4. Overdue charges and assessments

At April 30, 2009, and 2008, one member (Somalia) was six months or more overdue (since 1991) in meeting its financial obligations, amounting to SDR 14.1 million and SDR 13.5 million, respectively, to the SDR Department. During the financial year ended April 30, 2008, Liberia settled its overdue assessments and charges totaling SDR 30.1 million, which had previously been recognized as income.

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

20092008
(In millions of SDRs)
Total14.113.5
Overdue for six months or more14.012.9
Overdue for three years or more11.410.8

5. Allocations and holdings

At April 30, 2009 and 2008, 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 at April 30, 2009, and 2008 were as follows:

20092008
BelowAboveBelowAbove
TotalallocationsallocationsTotalallocationsallocations
(In millions of SDRs)
Cumulative
allocations21,43310,88010,55321,43311,29110,142
Holdings of SDRs
by participants18,7583,19015,56818,5923,59714,995
Net SDR positions2,6757,690(5,015)2,8417,694(4,853)

A summary of SDR holdings is provided below:

20092008
(In millions of SDRs)
Participants18,75818,592
General Resources Account2,1331,852
Prescribed holders5561,002
21,44721,446
Less: Overdue charges receivable1413
Total holdings21,43321,433

Schedule 1

SDR Department: Statements of changes in SDR holdings for the years ended April 30, 2009, and 2008

(In millions of SDRs)

General

Resources
PrescribedTotal
ParticipantsAccountholders20092008
Total holdings, beginning of year18,5921,8521,00221,44721,474
Receipts of SDRs
Transfers among participants and prescribed holders
Transactions by agreement1,235881,3231,051
Operations
Extension of credit558
Settlement of financial obligations33574
IMF-related operations
PRGF-ESF Trust loans149149226
SAF/Trust Fund repayments and interest31
PRGF-ESF Trust contributions and payments133115248327
PRGF-ESF Trust repayments and interest337337295
PRGF-HIPC contributions and interest payments1111237
Contributions to and deposits in Administered Accounts441
Emergency Assistance, SFF subsidy and HIPC payments19199
Refunds, distributions and other33
Net interest on SDRs11818136211
Transfers from participants and prescribed holders to the
General Resources Account
Repurchases213213542
Charges536536694
Quota payment47
Interest on SDRs4646101
Assessment on SDR Allocations222
Reimbursement of expenses by MDRI-I Trust222
Transfers from the General Resources Account to participants
and prescribed holders
Purchases4949719
In exchange for currencies of other members
Acquisitions to pay charges248248359
Remuneration196196303
Refunds, distributions and other2525753
Total receipts2,1867995623,5477,281
Uses of SDRs
Transfers among participants and prescribed holders
Transactions by agreement6326911,3231,051
Operations
Extension of credit558
Settlement of financial obligations33574
IMF-related operations
PRGF-ESF Trust loans149149226
SAF/Trust Fund repayments and interest31
PRGF-ESF Trust contributions and interest payments115133248327
PRGF-ESF Trust repayments and interest337337295
PRGF-HIPC contributions and interest payments1111237
Contributions to and deposits in Administered Accounts441
Emergency Assistance, SFF subsidy and HIPC payments19199
Refunds, distributions and other33
Transfers from participants and prescribed holders to the
General Resources Account
Repurchases213213542
Charges536536694
Quota payment47
Assessment on SDR allocations222
Reimbursement of expenses by MDRI-I Trust222
Transfers from the General Resources Account to participants
and prescribed holders
Purchases4949719
In exchange for currencies of other members
Acquisitions to pay charges248248359
Remuneration196196303
Refunds, distributions and other2525753
Charges paid in the SDR department
Net charges due182182312
Total uses2,0215181,0083,5477,281
Charges not paid when due113
Settlement of unpaid charges and assessments(1)(1)(30)
Total holdings, end of year18,7332,13355621,44721,447
The ending balances include rounding differences.
The ending balances include rounding differences.

Schedule 2

SDR Department: Allocations and holdings of participants at April 30, 2009

(In millions of SDRs)

Holdings
NetPercentage of(+) Above
cumulativecumulative(-) Below
ParticipantallocationsTotalallocationsallocations
Afghanistan, Islamic Republic of26.70.10.3(26.6)
Albania3.63.6
Algeria128.66.34.9(122.4)
Angola0.20.2
Antigua and Barbuda0.00.0
Argentina318.4320.6100.72.3
Armenia2.92.9
Australia470.5112.623.9(357.9)
Austria179.0198.7111.019.7
Azerbaijan0.50.5
Bahamas, The10.20.00.2(10.2)
Bahrain6.29.2149.13.0
Bangladesh47.11.12.3(46.0)
Barbados8.00.00.3(8.0)
Belarus0.10.1
Belgium485.2366.575.5(118.7)
Belize2.32.3
Benin9.40.00.2(9.4)
Bhutan0.40.4
Bolivia26.727.5102.90.8
Bosnia and Herzegovina20.50.10.6(20.4)
Botswana4.439.7909.835.3
Brazil358.70.80.2(357.9)
Brunei Darussalam12.812.8
Bulgaria4.24.2
Burkina Faso9.40.00.4(9.4)
Burundi13.70.10.4(13.6)
Cambodia15.40.00.2(15.4)
Cameroon24.53.012.1(21.5)
Canada779.3644.482.7(134.9)
Cape Verde0.60.07.5(0.6)
Central African Republic9.30.00.4(9.3)
Chad9.40.10.6(9.3)
Chile121.936.830.2(85.2)
China236.8789.0333.2552.2
Colombia114.3149.1130.534.8
Comoros0.70.02.7(0.7)
Congo, Democratic Republic of86.30.80.9(85.5)
Congo, Republic of9.70.11.5(9.6)
Costa Rica23.70.10.4(23.6)
Côte d’Ivoire37.80.61.5(37.2)
Croatia44.20.10.2(44.1)
Cyprus19.41.89.0(17.7)
Czech Republic13.913.9
Denmark178.9192.6107.713.7
Djibouti1.20.19.5(1.1)
Dominica0.60.03.0(0.6)
Dominican Republic31.61.64.9(30.0)
Ecuador32.917.051.7(15.9)
Egypt135.972.553.3(63.4)
El Salvador25.025.0100.10.0
Equatorial Guinea5.80.57.9(5.4)
Eritrea
Estonia0.10.1
Ethiopia11.20.00.2(11.1)
Fiji7.06.999.0(0.1)
Finland142.7155.4108.912.7
France1,079.9627.758.1(452.1)
Gabon14.10.32.1(13.8)
Gambia, The5.10.11.0(5.1)
Georgia2.02.0
Germany1,210.81,429.9118.1219.2
Ghana63.00.10.2(62.9)
Greece103.515.414.8(88.2)
Grenada0.90.549.8(0.5)
Guatemala27.71.24.3(26.5)
Guinea17.60.21.4(17.4)
Guinea-Bissau1.20.03.9(1.2)
Guyana14.50.00.2(14.5)
Haiti13.74.533.1(9.2)
Honduras19.10.00.2(19.0)
Hungary31.631.6
Iceland16.44.527.7(11.9)
India681.20.80.1(680.4)
Indonesia239.021.59.0(217.4)
Iran, Islamic Republic of244.1283.4116.139.3
Iraq68.593.3136.324.9
Ireland87.363.873.1(23.4)
Israel106.48.58.0(97.9)
Italy702.4189.026.9(513.4)
Jamaica40.60.10.2(40.5)
Japan891.71,974.4221.41,082.7
Jordan16.92.011.6(14.9)
Kazakhstan0.90.9
Kenya37.00.51.4(36.5)
Kiribati0.00.0
Korea72.956.477.3(16.5)
Kuwait26.7152.7570.8125.9
Kyrgyz Republic29.329.3
Lao People’s Democratic Republic9.49.8104.20.4
Latvia3.53.5
Lebanon4.421.6492.017.2
Lesotho3.73.9105.60.2
Liberia21.014.267.4(6.8)
Libya58.8587.0998.8528.2
Lithuania0.10.1
Luxembourg17.013.579.4(3.5)
Macedonia, former Yugoslav Republic of8.40.910.4(7.5)
Madagascar19.30.10.5(19.2)
Malawi11.00.00.2(11.0)
Malaysia139.0147.3106.08.3
Maldives0.30.4141.40.1
Mali15.90.00.1(15.9)
Malta11.311.8104.30.5
Marshall Islands
Mauritania9.70.10.6(9.7)
Mauritius15.718.8119.73.1
Mexico290.0292.7100.92.7
Micronesia, Federated States of1.41.4
Moldova0.00.0
Mongolia0.10.1
Montenegro0.30.3
Morocco85.712.414.5(73.3)
Mozambique0.10.1
Myanmar43.50.10.3(43.4)
Namibia0.00.0
Nepal8.15.466.6(2.7)
Netherlands530.3650.6122.7120.3
New Zealand141.314.410.2(127.0)
Nicaragua19.50.00.2(19.4)
Niger9.41.010.1(8.5)
Nigeria157.20.40.2(156.8)
Norway167.8283.5169.0115.8
Oman6.312.9205.66.6
Pakistan170.0109.164.2(60.9)
Palau
Panama26.30.41.7(25.9)
Papua New Guinea9.30.00.5(9.3)
Paraguay13.728.8210.015.1
Peru91.35.66.1(85.8)
Philippines116.66.75.8(109.8)
Poland71.071.0
Portugal53.379.7149.626.4
Qatar12.829.4229.516.6
Romania76.078.9103.82.9
Russian Federation1.41.4
Rwanda13.720.4149.06.7
St. Kitts and Nevis0.00.0
St. Lucia0.71.6217.70.9
St. Vincent and the Grenadines0.40.00.2(0.4)
Samoa1.12.6231.61.5
San Marino1.11.1
São Tomé and Príncipe0.60.02.8(0.6)
Saudi Arabia195.5480.0245.5284.5
Senegal24.50.10.2(24.4)
Serbia56.70.40.8(56.2)
Seychelles0.40.011.2(0.4)
Sierra Leone17.519.7113.02.3
Singapore16.5241.01,462.9224.5
Slovak Republic1.01.0
Slovenia25.47.730.1(17.8)
Solomon Islands0.70.01.2(0.6)
Somalia13.7(13.7)
South Africa220.4223.1101.22.7
Spain298.8148.749.8(150.1)
Sri Lanka70.91.21.6(69.7)
Sudan52.21.12.1(51.1)
Suriname7.80.34.5(7.4)
Swaziland6.42.639.7(3.9)
Sweden246.5197.079.9(49.5)
Switzerland82.682.6
Syrian Arab Republic36.636.6100.00.0
Tajikistan0.40.4
Tanzania31.40.10.3(31.3)
Thailand84.785.5101.00.8
Timor-Leste
Togo11.00.10.5(10.9)
Tonga0.50.5
Trinidad and Tobago46.20.61.4(45.6)
Tunisia34.23.39.7(30.9)
Turkey112.343.238.5(69.1)
Turkmenistan
Uganda29.40.10.2(29.3)
Ukraine16.316.3
United Arab Emirates38.711.228.9(27.5)
United Kingdom1,913.1288.415.1(1,624.7)
United States4,899.56,074.0124.01,174.5
Uruguay50.02.55.1(47.5)
Uzbekistan0.50.5
Vanuatu1.31.3
Venezuela, República Bolivariana de316.913.64.3(303.3)
Vietnam47.71.12.4(46.5)
Yemen, Republic of28.74.214.6(24.5)
Zambia68.36.79.8(61.6)
Zimbabwe10.20.00.2(10.2)
Above allocations10,553.015,568.6147.55,016
Below allocations10,880.33,189.629.3(7,691)
Total Participants21,433.318,758.2
General Resources Account2,133.1
Prescribed holders556.0
Overdue charges14.0
21,447.321,447.3

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