IMF POLICY PAPER
September 2016

REVIEW OF THE METHOD OF VALUATION OF THE
SDR—AMENDMENT TO RULE O-1
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The Staff Report, prepared by IMF staff and completed on September 30, 2016 forthe Executive Board’s consideration on September 30, 2016.

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© 2016 International Monetary Fund

September 30, 2016

REVIEW OF THE METHOD OF VALUATION OF THE SDR—AMENDMENT TO RULE O-1
Approved By

Andrew Tweedie

Prepared by the Finance Department(In consultation with the Legal Department)This paper seeks Executive Board approval of an amendment to Rule O-1, which
specifies the currency amounts in the SDR valuation basket.
In accordance with Decision No. 15891-(15/109), adopted November 30, 2015, as
amended by Decision No. 16033-(16/71), adopted on July 20, 2016, on the method ofvaluation of the SDR, the amounts of each currency to be included in the SDR valuationbasket, effective October 1, 2016, have been determined and are illustrated in Table 1,column 3.
These currency amounts are 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, andthat, at the average exchange rates for the three-month period ending today (July 1
through September 30, 2016), the share of each currency in the value of the SDR
corresponds to the weight approved by the IMF Executive Board on November 30, 2015.
Table 1, column 9 shows that the shares of the currencies in the value of the SDR are infact equivalent to the weights approved on November 30, 2015.

VALUATION OF THE SDR - AMENDMENT TO RULE O-1

Proposed Decision
The following decision, which may be adopted by a majority of the votes cast, is proposed for
adoption by the Executive Board:

Effective October 1, 2016, Rule O-1, which specifies the amounts of the currencies in the SDR
valuation basket, shall be amended to read as follows:“Rule O-1. The value of the SDR shall be the sum of the values of the following
amounts of the following currencies:

2U.S. dollar

0.58252Euro

0.38671

Chinese yuan

1.0174

Japanese yen

11.900Pound sterling

0.085946”

INTERNATIONAL MONETARY FUND

Table 1. Calculation of Amounts of Currency Units to be Listed in Amended Rule O-1, Effective October 1, 2016

Transition Date
Exchange Rates

1/

Base Period Avg.
Exchange Rates

Sep. 30, 2016

Jul. 1 - Sep. 30

(TEX)

(BEX)

(1)

(2)

U.S. dollar

Final Currency

1/Currency Amounts

Currency Weights
Implied by

Board-adopted

Valued at TEX

Valued at BEX(1) x (3)(2) x (3)

(3)

(4)

(5)

(7)

(8)

(9)

Amounts(CA)

3/

Final CA
(5) / (6)Weights 4/

Difference

1

10.58252

0.582520

0.582520

41.73

41.73

0.00

1.1166

1.116498

0.38671

0.431800

0.431761

30.9330.93

0.00

Chinese yuan

0.149837

0.149828

1.01740.152445

0.152435

10.92

10.92

0.00

Japanese yen

0.00988631

0.00977142

11.9000.117647

0.116280

8.33

8.33

0.00

Pound sterling

1.29611.313967

0.085946

0.111395

0.112930

8.09

8.09

0.00

SDR1 = US$

1.39581

EuroOn September 30, 2016

2/=Sum1.39581

2/ 5/

1.395926(6)

Source: IMF Finance Department.

INTERNATIONAL MONETARY FUNDVALUATION OF THE SDR – AMENDMENT TO RULE O-1

1/ The exchange rates are expressed as U.S. dollars per currency unit.
2/ The value in U.S. dollars of one SDR, rounded to six significant digits.
3/ See Currency Amounts in the SDR Basket—Proposed Changes to the Rounding Methodology, July 13, 2016 for details on calculation and rounding ofcurrency amounts.
4/ See Decision No. 15891-(15/109), adopted November 30, 2015, as amended by Decision No. 16033-(16/71), adopted July 20, 2016.
5/ The total may not reflect the sum of displayed components due to rounding.

3