REPORT TO CONGRESS ON FINANCIAL IMPLICATIONS OF

U.S. PARTICIPATION IN 

THE INTERNATIONAL MONETARY FUND

FY 2022

This report has been prepared in compliance with section 504(b) of Appendix E, Title V of the 

Consolidated Appropriations Act for FY 2000, Public Law No. 106-113 (Nov. 29, 1999). The 

report focuses on the direct (although typically unrealized) financial implications of U.S. 

participation in the International Monetary Fund (IMF) and does not attempt to quantify the 

broad and substantial economic benefits to the United States and the global economy resulting 

from U.S. participation in the IMF.

This report provides quarterly data for fiscal year 2022 and annual data for fiscal years 2003-

2022. It provides estimates of the financial implications of U.S. participation in the IMF’s 

General Department and Special Drawing Rights (SDR) Department. During the last 20 years, 

the cumulative net valuation and interest effects for U.S. participation in the IMF overall have 

reached negative $3.5 billion, primarily driven by valuation effects from the appreciation of the 

dollar in 2022. These estimates can vary considerably from year to year depending on 

movements in the value of the dollar. For example, the estimated valuation effect for the first 

nineteen years of this twenty-year window is roughly zero, with nearly all of the negative $3.5 

billion in valuation effects generated in fiscal year 2022. A portion of those estimated valuation 

effects have since reversed in fiscal year 2023.

As required, the report provides financial information on the net interest income and valuation 

changes associated with U.S. participation in the IMF. These data vary over time and may be 

positive or negative for any given quarter or year. Negative net interest income could arise when 

U.S. interest rates (associated with financing U.S. transactions with the IMF) are higher than the

SDR1interest rate (which is the basis for the rate that the IMF pays the United States for the use 

of U.S. financing). For example, the interest cost to United States in FY2022 was about $360 

million due to high U.S. interest rates relative to the SDR interest rate. Negative valuation 

changes occur when the U.S. dollar strengthens relative to the SDR.

Economic theory suggests that the fluctuations in interest rates or exchange rates should not 

result in either net gains or net losses over time as exchange rates among major currencies are 

generally expected to move inversely with interest rate differentials. According to theory, the 

currency of a country with a lower interest rate is expected to appreciate against the currency of a 

country with a higher interest rate in an amount that would offset the interest differential. In 

practice, however, changes in exchange rates and interest rates differential rarely fully offset one 

another for any given period. Hence, the computations reported below reflect substantial 

fluctuations, with significant gains or losses often arising for a given period in time.

The methodology used in deriving these figures has been laid out in previous reports, with the 

most recent revisions described in the FY2017-20 report. The methodology is also summarized 

briefly in the footnotes attached to the tables. Reports prepared under section 504(b) are made 

1 The SDR is an international reserve asset created by the IMF. The SDR is used as a unit of account by the IMF 

and other international organizations. Its value is determined as a weighted average of a basket of currencies. The 

SDR carries a market-based interest rate determined on the basis of a weighted average of interest rates on shortterm instruments in the markets of the currencies included in the SDR valuation basket.
available to the public on the Treasury website: https://home.treasury.gov/policyissues/international/international-monetary-fund.

Data on the average annual and cumulative income effects and valuation changes related to U.S. 

participation in the IMF’s General Department over the 20-year period from fiscal year 2003 to 

2022 are provided in Table 1a. Data on the net interest income and valuation changes for fiscal 

year 2022 are provided in Table 1b.

Similarly, data on the average annual and cumulative income effects and valuation changes 

related to U.S. participation in the SDR Department of the IMF over the 20-year period from 

2003 to 2022 are provided in Table 2a. Data on net interest income and valuation changes 

during fiscal year 2022 is provided in Table 2b. 

There are broad and substantial economic benefits that flow to the United States from its 

participation in the IMF, beyond the net interest and valuation effects described in this report. 

The IMF’s work ultimately supports U.S. jobs, exports, and financial markets. During financial 

crises abroad, the United States leverages the IMF as the first responder to protect our domestic 

economy by promoting global growth and stability. Through its three main activities—

surveillance, lending, and technical assistance—the IMF promotes economic stability and helps

prevent and resolve financial crises when they occur. When foreign economies are in crisis, they 

import less from U.S. businesses, they invest less in the United States, and they can negatively 

affect our financial markets, hurting the value of retirement savings for American households. 

U.S. participation in the IMF brings broad benefits for America, for the health of the U.S. 

economy, and for the prosperity shared by American workers.

Estimating the Financial Implications of U.S. Participation in the General Department

Four elements go into estimating the financial implications of U.S. participation in the IMF in 

the IMF’s General Department:

• Interest forgone by the United States on reserve assets transferred to the IMF.2

• Interest paid by the United States on increased borrowing to finance U.S. transfers of 

U.S. dollars and SDRs to the IMF (under the letter of credit, as part of the quota 

subscription) and U.S. loans to the IMF (under the second-line of IMF resources, the

New Arrangements to Borrow (NAB)).

• Interest received by the United States on the U.S. reserve position in the IMF3and 

remuneration on U.S. loans to the IMF (under the NAB).

• Changes to the value of the U.S. reserve position in the IMF, as a result of fluctuations in 

the value of the U.S. dollar relative to the SDR. 

Over the period fiscal year 2003 through fiscal year 2022 (Table 1a), the average annual net 

interest income effect of U.S. participation in the General Department was negative $59 million, 

while the cumulative net interest income effect was negative $1,181 million. Negative net 

interest income arose over this period because the interest rate associated with financing U.S. 

transactions with the IMF was higher than the interest rate that the IMF provides to repayments

to the United States during that same period. The average annual valuation change in the U.S. 

2 When the United States transfers reserve assets including foreign currencies to the IMF to satisfy obligations 

resulting from a quota increase, the United States incurs a decrease in interest-bearing assets. The SDR interest rate 

is used in estimating the interest foregone, since assets transferred are currencies that make up the SDR. 

3 The U.S. reserve position in the IMF comprises all outstanding transfers from the United States to the IMF as a 

part of the U.S. quota subscription. This includes any loans under quota, reserve asset payments under a quota 

increase, and all gold transfers prior to 1978 (gold transfers totaled SDR 1.675 billion). The United States earns 

interest on the entire reserve position, except for gold.
reserve position was negative $117 million, while the cumulative valuation change was negative

$2,337 million, reflecting a U.S. dollar that appreciated relative to the SDR over the selected 

period.

The annual and quarterly figures can fluctuate considerably at times. The financial implications 

of U.S. participation in the General Department reflected a net interest income effect of negative 

$301 million for FY2022 (Table 1b). The valuation changes in the U.S. Reserve Position were 

negative $3,177 million for FY2022.

4

 Valuation changes on the reserve position are unrealized 

and can fluctuate significantly from year to year. Clear evidence of this is the fact that the 

unrealized losses last year were greater than the total unrealized losses for the total twenty years. 

That is, in the nineteen years from 2003-2021, the total valuation changes were positive, but the 

size of last year’s unrealized losses were large enough to reverse that. 

It is worth noting that the dollar significantly appreciated throughout the first ten months of 

calendar year 2022 before reversing back towards long term historical levels during the first half 

of calendar year 2023. As such, many of the unrealized losses at the end of fiscal year 2022 have 

already been reversed which will be reflected in next year’s report. 

Estimating the Financial Implications of U.S. Participation in the SDR Department

Three elements go into estimating the financial implications of U.S. participation in the IMF in 

the IMF’s SDR Department:

• Interest paid by the United States on increased borrowing to finance acquisition of SDRs.

• Interest received by the United States on the U.S. holdings of SDRs.

• Changes to the value of U.S. holdings of SDRs, as a result of fluctuations in the value of 

the U.S. dollar relative to the SDR. 

In August 2021, the United States received an allocation of SDR 79.5 billion (about $112.8 

billion5) of the SDR 456 billion (about $646.8 billion) total as part of the IMF’s effort to boost 

global liquidity; however, this allocation does not impact the calculations regarding U.S. 

participation in the IMF, because the SDRs are accounted for as both an asset and liability. The 

IMF SDR Department pays interest on the SDR holdings of each member country and levies 

charges on each member’s SDR allocation. Thus, there are no interest or foreign exchange 

implications for the United States as a result of the allocation. The United States can increase its 

holdings of SDRs by exchanging dollars for SDRs. This transaction reduces the U.S. cash 

position, increasing federal borrowing requirements. The United States can decrease its holdings 

of SDRs by exchanging SDRs for dollars, which reduces the federal borrowing requirement. 

Whether SDR exchanges are a net cost to the US depends on the interest rate differential 

between the SDR interest rate and Treasury’s cost of borrowing. If the United States transfers 

SDRs to the IMF as a part of a quota increase, U.S. holdings of SDRs decline but the U.S. cash 

position and federal borrowing requirements remain unchanged.6

As shown in Table 2a, over the period fiscal year 2003 through fiscal year 2022, the average 

annual net interest income effect of U.S. participation in the SDR Department was negative 

$6 million, while the cumulative net interest income effect was negative $111 million. During 

4 For an explanation of the methodology used in deriving these figures, see the annex of the report prepared for the 

fiscal years 2017-2020 available at https://home.treasury.gov/system/files/206/FY17-

20_Report_Financial_Implications_US_Participation_IMF_0.pdf.

5 As valued on August 23,2021. The SDR exchange rate can be found at 

https://www.imf.org/external/np/fin/data/rms_sdrv.aspx. 

6 These costs are accounted for under “U.S. participation in the General Department.”
the same period, the average annual valuation change on U.S. SDR holdings was positive 

$9 million, while the cumulative valuation change was positive $187 million. 

As shown in Table 2b, the net interest income effect of U.S. participation in the SDR Department 

was negative $62 million for FY2022. The valuation change on U.S. SDR holdings was negative

$426 million for FY2021.

7

After transmittal, this report, as with previous reports, will be posted on the Treasury website.

7 For an explanation of the methodology used in deriving these figures, see the annex of the report prepared for the 

fiscal years 2017-2020 available at https://home.treasury.gov/system/files/206/FY17-

20_Report_Financial_Implications_US_Participation_IMF_0.pdf.
Table 1a - Annual U.S. Participation in the IMF's General Department

-- General Department --

U.S. Fiscal Year, Annually

(millions of U.S. Dollars)

Year Transactions with the IMF Interest Calculations Valuation Total

Outstanding 

Credit under 

U.S. Quota 

(Letter of 

Credit & 

Transfers of 

Reserve Assets)

Outstanding 

U.S. Loans to 

IMF (Under 

GAB, NAB)

Total 

Outstanding 

U.S. Credit 

with the IMF/1

Interest 

Expense 

Associated with 

Financing U.S. 

Transactions 

with the IMF

Remuneration 

Received by 

U.S. from IMF 

& Refund of 

Burden Sharing

Net Interest 

Income

Valuation 

Changes on 

U.S. Reserve 

Position Total

(Col. 1 + 2) (Col. 4a + 4b) (Col. 4 + 5) (Col. 6 + 7)

Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8

2003 $24,200 $0 $24,200 -$286 $348 $62 $1,722 $1,784

2004 $19,577 $0 $19,577 -$282 $300 $18 $648 $666

2005 $13,428 $0 $13,428 -$357 $316 -$41 -$54 -$95

2006 $6,756 $0 $6,756 -$205 $210 $5 $107 $112

2007 $4,616 $0 $4,616 -$78 $107 $29 $259 $288

2008 $4,838 $0 $4,838 -$81 $59 -$22 -$95 ` -$117

2009 $13,513 $0 $13,513 -$45 $40 -$5 $548 $543

2010 $13,082 $0 $13,082 -$43 $23 -$20 -$166 -$186

2011 $22,810 $6,148 $28,958 -$87 $63 -$24 -$226 -$250

2012 $23,654 $11,753 $35,407 -$92 $52 -$40 -$298 -$338

2013 $19,990 $13,624 $33,614 -$102 $24 -$78 -$184 -$262

2014 $14,854 $13,665 $28,519 -$119 $28 -$91 -$643 -$734

2015 $9,507 $9,528 $19,035 -$74 $10 -$64 -$1,088 -$1,152

2016 $10,024 $8,619 $18,643 -$64 $8 -$56 -$85 -$141

2017 $11,964 $7,372 $19,336 -$140 $52 -$89 $156 $67

2018 $15,813 $4,502 $20,315 -$266 $123 -$143 -$204 -$346

2019 $23,404 $2,518 $25,922 -$431 $210 -$221 -$486 -$707

2020 $31,724 $1,701 $33,425 -$174 $123 -$51 $919 $868

2021 $33,261 $937 $34,198 -$71 $23 -$48 $10 -$38

2022 $31,795 $487 $32,281 -$397 $95 -$301 -$3,177 -$3,478

Total -$1,181 -$2,337 -$3,518

Annual Average -$59 -$117 -$176
Table 1b – Quarterly U.S. Participation in the IMF’s General Department

-- General Department --

U.S. Fiscal Year, Quarterly

(millions of U.S. Dollars)

Quarter Transactions with the IMF Interest Valuation Total

Outstanding 

Credit under 

U.S. Quota 

(Letter of 

Credit & 

Transfers of 

Reserve 

Assets)

Outstanding 

U.S. Loans to 

IMF (Under 

GAB, NAB)

Total 

Outstanding 

U.S. Credit 

with the 

IMF/1

Interest 

Expense 

Associated 

with 

Financing 

U.S. 

Transactions 

with the IMF

Remuneration 

Received by 

U.S. from 

IMF & 

Refund of 

Burden 

Sharing

Net Interest 

Income

Valuation 

Changes on 

U.S. Reserve 

Position Total

(Col. 1 - 2) (Col. 4 + 5) (Col. 6 + 7)

Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8

FY 2022

Q1: Oct - Dec 2021 $35,211 $920 $36,130 -$26 $4 -$22 -$231 -$253

Q2: Jan - Mar 2022 $34,322 $776 $35,098 -$53 $6 -$48 -$427 -$474

Q3: Apr - June 2022 $32,836 $509 $33,345 -$117 $21 -$96 -$1,345 -$1,441

Q4: July - Sept 2022 $31,795 $487 $32,281 -$200 $65 -$135 -$1,174 -$1,309

Total -$301 -$3,177 -$3,478
TABLE 1

Footnotes to Columns 

Column 1: Total outstanding credit under the U.S. quota, including drawings by the IMF under the U.S. 

letter of credit, the transfers of reserve assets to the IMF, and gold transfers prior to 1978.

Column 2: Total outstanding dollar funding through loans to the IMF made by the U.S. under the 

General Arrangements to Borrow (GAB, in FY 1998) and the New Arrangements to Borrow (NAB, in 

FY 1999 and in FY 2011-present). U.S. loans under the GAB in FY 1998 and NAB in FY 1999 have 

been repaid. The GAB expired in 2018.

Column 3: Total outstanding U.S. credit with the IMF (horizontal summation of columns 1 and 2).

Column 4: Total interest expense associated with total cumulative transactions shown in column 3. This 

includes interest paid on incremental public borrowing to fund the IMF’s use of U.S. dollars and SDRs

under quota and any transfer of U.S. dollars to the IMF under loan arrangements (Supplementary 

Financing Facility, GAB, NAB), as well as interest income forgone on foreign currencies transferred to 

the IMF at the time of a quota increase. As Treasury increases its net borrowing from the public in order 

to provide U.S. dollars or SDRs to the IMF under quota or other loan arrangements, the interest cost 

associated with such borrowing is calculated using Treasury’s average cost of funds. This interest cost 

enters the federal budget as part of interest on the public debt. For purposes of calculating forgone 

interest on the transfer of foreign currencies to the IMF, the SDR interest rate is used.

Column 5: Total interest income received through the U.S. reserve position and loans under GAB and 

NAB. The U.S. reserve position in the IMF is an interest-bearing asset of the Treasury General Account 

(TGA). This interest (“remuneration”) is paid by the IMF every IMF fiscal quarter and is recorded in the 

federal budget as a negative outlay. The IMF normally pays remuneration in SDRs, which become 

resources of the Exchange Stabilization Fund (ESF). In return, the ESF transfers an equivalent dollar 

amount to the TGA. The transfer of dollars from the ESF to the TGA has no effect on Treasury’s cash 

position. If the United States were to request payment in dollars, the payment would be in the form of a 

decrease in the U.S. letter of credit and a counterpart increase in the U.S. reserve position, but no flow of 

cash to the TGA.

Column 6: Total net interest paid, forgone, or received as a result of U.S. participation in the General 

Department of the IMF.

Column 7: The U.S. reserve position in the IMF is denominated in SDRs. The valuation gain (if 

positive) or loss (if negative) refers to the exchange rate gain or loss on the reserve position due to 

changes in the dollar value of the SDR. For example, if the SDR appreciates/dollar depreciates, then the 

dollar value of the reserve position rises and a valuation gain is recorded. This column would also 

include valuation gains or losses experienced as a result of U.S. loans under the SFF, GAB and NAB.

Column 8: The total of net interest and valuation changes, obtained by summing column 6 and column 7.
Table 2a - Annual U.S. Participation in the IMF’s SDR Department

-- SDR Department --

U.S. Fiscal Year, Annually

(millions of U.S. Dollars)

Year Net SDR Holdings Interest Valuation Total

SDR Holdings

Cumulative SDR 

Allocation Net SDR Holdings

Interest Income 

on Net SDR 

Holdings

Interest Expense 

to finance Net 

SDR Holdings

Net Interest 

Income

Valuation 

Changes Total

(Col. 1 - 2) (Col. 4 + 5) (Col. 6 + 7)

Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8

2003 $12,062 $7,005 $5,057 $97 -$68 $29 $396 $425

2004 $12,782 $7,197 $5,585 $87 -$79 $8 $137 $145

2005 $8,245 $7,102 $1,143 $114 -$106 $8 -$14 -$5

2006 $8,655 $7,234 $1,421 $44 -$62 -$17 $25 $8

2007 $9,301 $7,627 $1,674 $63 -$77 -$14 $81 $67

2008 $9,418 $7,630 $1,788 $59 -$44 $15 -$3 $12

2009 $57,945 $55,953 $1,992 $20 -$14 $7 $33 $40

2010 $57,410 $54,958 $2,453 $6 -$17 -$11 -$38 -$50

2011 $55,875 $55,150 $726 $7 -$6 $1 $34 $35

2012 $55,232 $54,463 $769 $1 -$3 -$1 -$9 -$10

2013 $54,966 $54,177 $789 $1 -$3 -$2 -$4 -$6

2014 $53,148 $52,358 $790 $1 -$4 -$3 -$27 -$31

2015 $50,332 $49,574 $758 $0 -$4 -$3 -$42 -$45

2016 $50,054 $49,294 $760 $0 -$4 -$4 -$4 -$8

2017 $51,443 $49,912 $1,532 $4 -$15 -$10 $45 $34

2018 $50,918 $49,274 $1,644 $12 -$31 -$18 -$22 -$40

2019 $49,976 $48,146 $1,830 $18 -$41 -$22 -$41 -$63

2020 $51,733 $49,709 $2,024 $10 -$15 -$6 $62 $57

2021 $163,874 $161,825 $2,049 $1 -$5 -$4 $2 -$2

2022 $153,175 $147,009 $6,166 $14 -$76 -$62 -$426 -$487

Total -$111 $187 $76

Annual Average -$6 $9 $4
Table 2b - Quarterly U.S. Participation in the IMF’s SDR Department

-- SDR Department --

U.S. Fiscal Year, Quarterly

(millions of U.S. Dollars)

Quarter Net SDR Holdings Interest Valuation Total

SDR Holdings

Cumulative SDR 

Allocation Net SDR Holdings

Interest Income on 

Net SDR Holdings

Interest Expense 

to finance Net 

SDR Holdings

Net Interest 

Income

Valuation 

Changes Total

(Col. 1 - 2) (Col. 4 + 5) (Col. 6 + 7)

Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8

FY 2022

Q1: Oct - Dec 2021 $163,629 $160,760 $2,869 $0 -$3 -$2 -$13 -$16

Q2: Jan - Mar 2022 $163,131 $158,785 $4,346 $0 -$8 -$7 -$35 -$42

Q3: Apr - June 2022 $158,195 $152,511 $5,684 $3 -$23 -$20 -$172 -$192

Q4: July - Sept 2022 $153,175 $147,009 $6,166 $11 -$43 -$32 -$205 -$237

Total -$62 -$426 -$487
TABLE 2

Footnotes to Columns 

Column 1: Total stock of U.S. holdings of SDRs measured at the end of period, converted into dollars at the 

end of period exchange rate. Source: IMF.

Column 2: Total stock of U.S. SDR allocations measured at the end of period, converted into dollars at the 

end of period exchange rate. Changes in the dollar value of cumulative SDR allocations reflect new SDR 

allocations as well as exchange rate changes. 

Column 3: Total stock of U.S. SDR holdings minus allocations measured from end of period (Column 1 

minus Column 2), converted into dollars at the end of period exchange rate. 

Column 4: Net interest earned on SDR holdings. Derived by subtracting actual charges on SDR allocations 

from actual interest earned on SDR holdings. 

Column 5: Net effect on U.S. borrowing costs of cumulative net SDR holdings, derived by multiplying the 

dollar equivalent of cumulative net SDR holdings by Treasury’s average cost of funds rate. Interest is 

calculated on the basis of end-quarter holdings and compounded quarterly. 

Column 6: Net interest income (Column 4 plus Column 5).

Column 7: The valuation change refers to the gain or loss over the period on the reserve position due to 

changes in the dollar value of the SDR. For example, if the SDR appreciates/dollar depreciates, then the 

impact on the dollar value of U.S. holdings of SDRs is positive, and a valuation gain is recorded. The 

change is calculated by subtracting the beginning of period dollar value of SDR reserves from the same SDR 

reserve figure converted to dollars using the end of period exchange rate. This isolates changes due to 

exchange rate movements from changes due to actual SDR transactions over the period.

Column 8: The total net interest and valuation changes (sum of Columns 6 and 7).