REPORT TO CONGRESS ON FINANCIAL IMPLICATIONS OF 

U.S. PARTICIPATION IN 

THE INTERNATIONAL MONETARY FUND 

Q1 – Q4 FY2008 and Q1 FY2009 

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

Consolidated Appropriations Act for FY 2000. 1

 The report focuses exclusively on the 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. 

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

changes associated with U.S. participation in the IMF. The broader context for the financial 

implications of U.S. participation in the IMF and the methodology used in deriving these figures 

has been laid out in previous reports. The methodology is also summarized briefly in the 

footnotes attached to the tables. Reports under Section 504(b) are prepared quarterly and made 

available to the public on the Treasury website: http://www.treas.gov/press/reports.html. 

This report provides quarterly data for the full fiscal year of 2008 and the first quarter of fiscal 

year 2009. It provides information on U.S. participation in the IMF’s General Department as 

well as information related to U.S. holdings of Special Drawing Rights (SDRs) as part of its 

international reserves and the financial implications of U.S. participation in the SDR Department 

of the IMF.2

Data on the net interest income and valuation changes related to U.S. participation in the IMF's 

General Department during the first to fourth quarters of fiscal year 2008 and the first quarter of 

fiscal year 2009 are provided in Table 1. For comparison purposes, previously-reported data for 

the last two fiscal years are also provided. 

Similarly, data for net interest income and valuation changes related to U.S. participation in the 

SDR Department of the IMF during the first to fourth quarters of fiscal year 2008 and the first 

quarter of 2009 are provided in Table 2. For comparison purposes, data for the last two fiscal 

years are also provided.3

 

1

 Section 504(b) of Appendix E, Title V of the Consolidated Appropriations Act for FY 2000, Public Law 106-113, 

113 Stat. 1501A-317, requires that the Secretary of the Treasury prepare and transmit to the appropriate committees 

of the Congress a quarterly report on United States participation in the International Monetary Fund (IMF), detailing 

the costs or benefits to the United States as well as valuation gains or losses on the United States’ reserve position in 

the IMF. 

2

 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 

dollar, euro, pound sterling and yen. The SDR carries a market-based interest rate determined on the basis of a 

weighted average of interest rates on short-term instruments in the markets of the currencies included in the SDR 

valuation basket. 

3

 Data for the fourth quarter of fiscal year 2007 have been revised to correct a data entry error. The resultant 

decrease in net interest income is $1 million (due to rounding). 

1 
2

 

The table footnotes explain the columns shown and provide pertinent information and 

assumptions used in the calculations. 

As shown in Table 1, for the first to fourth quarters of fiscal year 2008 and the first quarter of 

fiscal year 2009, the financial implications of U.S. participation in the General Department 

reflected a net interest income effect of $64 million. The valuation change in the U.S. Reserve 

Position for the first to fourth quarters of fiscal year 2008 and the first quarter of fiscal year 2009 

was negative $48 million.4 

As shown in Table 2, for the first to fourth quarters of fiscal year 2008 and the first quarter of 

fiscal year 2009, the net interest income effect of U.S. participation in the SDR Department was 

$23 million. The valuation change on U.S. SDR holdings for the first to fourth quarters of fiscal 

year 2008 and the first quarter of fiscal year 2009 was negative $22 million.5

Over the period fiscal year 2000 through fiscal year 2008, the average annual net interest income 

effect of U.S. participation in the General Department was $58 million, while the cumulative net 

interest income effect was $475 million. During the same period, the average annual valuation 

change in the U.S. Reserve Position was positive $209 million, while the cumulative valuation 

change was positive $1,883 million. 

Over the period fiscal year 2000 through fiscal year 2008, the average annual net interest income 

effect of U.S. participation in the SDR Department was negative $7 million, while the 

cumulative net interest income effect was negative $61 million. During the same period, the 

average annual valuation change on U.S. SDR holdings was positive $55 million, while the 

cumulative valuation change was positive $491 million. 

Attachments 

4

 For an explanation of the methodology used in deriving these figures, see the section on “Calculating the Financial 

Implications of U.S. Participation in the General Department” in the report prepared for the fourth quarter of fiscal 

year 2000, submitted in December 2000 and available at http://www.treas.gov/press/releases/report3073.htm 5

 For an explanation of the methodology used in deriving these figures, see the section on “Calculating the Financial 

Implications of U.S. Participation in the SDR Department” in the report prepared for the fourth quarter of fiscal year 

2000, submitted in December 2000 and available at http://www.treas.gov/press/releases/report3073.htm. 
Table 1 Net Interest Income and Valuation Changes Related to U.S. Participation 

 -- General Department --

U.S. Fiscal Year, Quarterly 

(millions of U.S. Dollars)

V

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

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

2006

Q1: Oct - Dec 05 -2,660 0 -2,660 -$41 $69 $0 $29 Q2: Jan - Mar 06 -1,947 0 -1,947 -$18 $58 $0 $41 Q3: Apr -June 06 -2,296 0 -2,296 -$14 $40 $0 $26 Q4: July -Sept 06 -1,023 0 -1,023 -$12 $42 $0 $30 

Total -$85 $210 $0 $125 2007

Q1: Oct - Dec 06 658 0 658 $0 $36 $0 $36 Q2: Jan - Mar 07 873 0 873 $0 $27 $0 $27 Q3: Apr -June 07 -623 0 -623 -$4 $23 $0 $19 Q4: July -Sept 07 1,375 0 1,375 $0 $20 $0 $20 

Total -$4 $107 $0 $103 2008

Q1: Oct - Dec 07 1,672 0 1,672 $0 $18 $0 $18 Q2: Jan - Mar 08 1,786 0 1,786 $0 $14 $0 $14 Q3: Apr -June 08 829 0 829 $0 $10 $0 $10 Q4: July -Sept 08 -2,285 0 -2,285 -$5 $17 $0 $12 

Total -$5 $59 $0 $54 2009

Q1: Oct - Dec 08 -1,799 0 -1,799 -$3 $13 $0 $10 

Note: Detail may not add to total due to rounding.

Net Interest 

Fiscal Year Ended 9/30 Income

Va

o

Transactions with the IMF Interest Calculations

Transactions under U.S. 

Quota (Letter of Credit 

&Transfers of Reserve 

Assets) Cumulative

U.S. Loans to IMF 

(Under SFF, GAB, 

NAB) 

Cumulative

Total U.S. 

Transactions 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

Interest Received by

U.S. from IMF 

under SFF, GAB, 

and NAB 
Table 2 Net Interest and Valuation Changes Related to U.S. Participation in t

 -- SDR Department --

U.S. Fiscal Year, Quarterly

(millions of U.S. Dollars)

Net SDR Holdings Interest Calculations Valuat

Fiscal Year Ended 

9/30

Dollar Value of 

SDR Holdings

Dollar Value of 

Cumulative SDR 

Allocation Net SDR Holdings

Interest Income on 

Net SDR Holdings

Interest Expense 

Associated with 

Financing 

Cumulative U.S. 

SDR Transactions

Net Interest 

Income Valuation C

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

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

2006

Q1: Oct - Dec 05 $8,210 $7,003 $1,207 $11 -$12 -$1 -

Q2: Jan - Mar 06 $8,344 $7,059 $1,284 $9 -$15 -$5 Q3: Apr - June 06 $8,618 $7,248 $1,369 $11 -$17 -$6 Q4: July - Sept 06 $8,655 $7,234 $1,421 $13 -$18 -$5 

Total $44 -$62 -$17 2007

Q1: Oct - Dec 06 $8,870 $7,371 $1,499 $14 -$19 -$5 

Q2: Jan - Mar 07 $8,948 $7,399 $1,548 $15 -$20 -$4 Q3: Apr - June 07 $9,018 $7,426 $1,592 $16 -$20 -$4 Q4: July - Sept 07 $9,301 $7,627 $1,674 $18 -$19 -$2 

Total $63 -$77 -$14 2008

Q1: Oct - Dec 07 $9,477 $7,743 $1,734 $17 -$16 $1 

Q2: Jan - Mar 08 $9,892 $8,057 $1,835 $16 -$10 $6 Q3: Apr - June 08 $9,849 $8,004 $1,845 $13 -$9 $3 -Q4: July - Sept 08 $9,418 $7,630 $1,788 $13 -$8 $5 -

Total $59 -$44 $15 2009

Q1: Oct - Dec 08 $9,340 $7,547 $1,794 $12 -$4 $8 -

Note: Detail may not add to total due to rounding.
TABLE 1 

Footnotes to Columns 

Column 1: Total cumulative transactions under the U.S. quota, including drawings by the IMF under the Letter of Credit (

quota) and the transfers of reserve assets to the IMF (generally 25% of the U.S. quota). This does not include cumulative vColumn 2: Total cumulative dollar funding through loans to the IMF made by the U.S. under the Supplementary Financing 

1980), the General Arrangements to Borrow (GAB, in FY1998) and the New Arrangements to Borrow (NAB, in FY1999). the three facilities/arrangements have been repaid. Column 3: Total cumulative U.S. transactions 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 public borrowing to fund the IMF's use of dollars under the Letter of Credit and any transfer of dollars to the IMF under loa

GAB, NAB), as well as interest income forgone on reserve assets transferred to the IMF at the time of a quota increase. As borrowing from the public in order to provide resources to the IMF under the Letter of Credit or loan arrangements, the inte

with such borrowing is calculated using Treasury's average cost of funds. This interest cost enters the federal budget as parpublic debt. For purposes of calculating forgone interest on the transfer of reserve assets to the IMF, the SDR interest rate 

Column 5: The U.S. reserve position in the IMF is an interest-earning asset in the Treasury General Account (TGA). This 

("remuneration") is paid by the IMF every IMF fiscal quarter and is recorded in the budget as a negative outlay. The IMF nremuneration in SDRs, which become resources of the Exchange Stabilization Fund (ESF). In return, the ESF transfers an 

amount to the TGA. The transfer of dollars from the ESF to the TGA has no effect on Treasury's cash position. If the Unitrequest payment in dollars, the payment would be in the form of a decrease in the U.S. Letter of Credit and a counterpart in

reserve position. Column 6: These amounts constitute the interest payments the United States has received on its loans to the IMF under the 

Column 7: Total net interest paid, forgone or received as a result of U.S. participation in the General Department of the IM

Column 8: The U.S. reserve position in the IMF is denominated in SDRs. The valuation gain (if positive) or loss (if negat

exchange rate gain or loss on the reserve position due to changes in the dollar value of the SDR. For example, if the SDR a

depreciates, then the dollar value of the reserve position rises and a valuation gain is recorded. This column would also inclosses experienced as a result of U.S. loans under the SFF, GAB and NAB. Column 9: The total of net interest and valuation changes, obtained by summing column 7 and column 8. 
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 e

IMF. Column 2: Total stock of U.S. SDR allocations measured at the end of period, converted into dollars at the end of period exU.S. SDR allocations have been constant since 1981, changes in dollar value of SDR allocations reflect only exchange rate Column 3: Total stock of U.S. SDR holdings minus allocations measured from end of period (Column 2 minus Column 3), 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 int

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

SDR holdings by the average cost of funds rate. Interest is calculated on the basis of end-quarter holdings and compounde

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

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

For example, if the SDR appreciates/dollar depreciates, then the impact on the dollar value of U.S. holdings of SDRs is pos

gain is recorded. The change is calculated by subtracting the beginning of period dollar value of SDR reserves from the saconverted to dollars using the end of period exchange rate. This isolates changes due to exchange rate movements from ch

SDR transactions over the period. Column 8: The total net interest and valuation changes (sum of Columns 7 and 8).