REPORT TO CONGRESS ON FINANCIAL IMPLICATIONS OF

U.S. PARTICIPATION IN 

THE INTERNATIONAL MONETARY FUND

FY 2017 – FY 2020

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 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 years 2017, 2018, 2019, and 2020 and annual data 

for full fiscal years 2001-2020. It provides estimates of the financial implications on 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 positive $1.1 billion.

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 United States lost about $250 million in FY2019 due to 

high U.S. interest rates relative to the SDR interest rate. Negative valuation changes can 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. The 

methodology is also summarized briefly in the footnotes attached to the tables. Historical data 

are also included in this report to reflect two methodological adjustments, relative to previous 

reports. These methodological changes are discussed in detail in the Annex. Reports prepared 

under section 504(b) are made available to the public on the Treasury website: 

https://home.treasury.gov/policy-issues/international/international-monetary-fund.

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

participation in the IMF’s General Department over the 20-year period from 2001 to 2020 are 

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.
provided in Table 1a. Data on the net interest income and valuation changes during fiscal years 

2017, 2018, 2019, and 2020 are provided in Table 1b.

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

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

2001 to 2020 are provided in Table 2a. Data on net interest income and valuation changes 

during fiscal years 2017, 2018, 2019, and 2020 are provided in Table 2b. 

There are broad and substantial economic benefits to the United States resulting from U.S. 

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 damage 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 New Arrangements to Borrow).

• 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 New Arrangements to Borrow).

• 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 2001 through fiscal year 2020 (Table 1a), the average annual net 

interest income effect of U.S. participation in the General Department was negative $42 million, 

while the cumulative net interest income effect was negative $841 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. 

reserve position was positive $61 million, while the cumulative valuation change was positive 

$1,229 million, reflecting a U.S. dollar that weakened over the selected period. This long-run 

inverse relationship between interest and valuation effects is consistent with economic theory, as 

described above.

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 (about $2.3 billion). The United States earns interest on the entire 

reserve position, except for gold.
However, 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 $89 million for FY2017, negative $143 million for FY2018, negative $221 for 

FY2019, and negative $51 million for FY2020 (Table 1b). The increase in net interest income 

costs in FY2018 and FY2019 is due to relatively high U.S. interest rates, generating an interest 

rate differential with the SDR interest rate as large as 150 basis points. The valuation changes in 

the U.S. Reserve Position were positive $156 million for FY2017, negative $204 million for 

FY2018, negative $486 for FY2019, and positive $919 million for FY2020.

4

 Valuation changes 

on the reserve position are unrealized and can fluctuate significantly from year to year.

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. 

Holdings of SDRs represent an asset, while cumulative allocations received represent a liability.

When the United States receives an allocation of SDRs, the United States incurs a liability to the 

IMF as an offset to its increased holdings of SDRs. The United States can increase its holdings 

of SDRs by buying SDRs in exchange for dollars, and this causes the U.S. cash position to 

decline, increasing federal borrowing requirements. When the United States sells SDRs in 

exchange for dollars, federal borrowing requirements are reduced. When 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.5

As shown in Table 2a, over the period fiscal year 2001 through fiscal year 2020, the average 

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

$3 million, while the cumulative net interest income effect was negative $52 million. During the 

same period, the average annual valuation change on U.S. SDR holdings was positive 

$36 million, while the cumulative valuation change was positive $724 million. 

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

was negative $10 million for FY2017, negative $18 million for FY2018, negative $22 million for 

FY2019, and negative $6 million for FY2020. The valuation change on U.S. SDR holdings was 

positive $45 million for FY2017, negative $22 million for FY2018, negative $41 million for 

FY2019, and positive $62 million for FY2020.

6

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

4 For an explanation of the methodology used in deriving these figures, see the section on “Estimating 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 https://www.treasury.gov/press-center/pressreleases/Documents/report30732.pdf.

5 These costs are accounted for under “U.S. participation in the General Department.”

6 For an explanation of the methodology used in deriving these figures, see the section on “Estimating 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 https://www.treasury.gov/press-center/pressreleases/Documents/report30732.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

2001 $18,528 $0 $18,528 -$539 $492 -$47 -$47 -$95

2002 $20,977 $0 $20,977 -$333 $372 $38 $446 $484

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

Total -$841 $1,229 $388

Annual Average -$42 $61 $19
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 2017

Q1: Oct - Dec 2016 $10,379 $8,301 $18,680 -$23 $3 -$20 -$376 -$396

Q2: Jan - Mar 2017 $10,592 $7,998 $18,590 -$33 $10 -$23 $96 $73

Q3: Apr - June 2017 $10,939 $8,202 $19,140 -$41 $15 -$26 $265 $239

Q4: July - Sept 2017 $11,964 $7,372 $19,336 -$44 $24 -$20 $172 $152

Total -$89 $156 $67

FY 2018

Q1: Oct - Dec 2017 $12,146 $5,782 $17,928 -$48 $24 -$25 $84 $59

Q2: Jan - Mar 2018 $12,647 $5,575 $18,222 -$59 $30 -$29 $247 $218

Q3: Apr - June 2018 $15,627 $5,143 $20,770 -$72 $31 -$41 -$411 -$452

Q4: July - Sept 2018 $15,813 $4,502 $20,315 -$86 $39 -$48 -$124 -$171

Total -$143 -$204 -$346

FY 2019

Q1: Oct - Dec 2018 $19,002 $3,305 $22,306 -$103 $43 -$60 -$38 -$98

Q2: Jan - Mar 2019 $19,406 $2,976 $22,381 -$108 $52 -$56 -$35 -$91

Q3: Apr - June 2019 $22,074 $2,591 $24,666 -$115 $56 -$59 $33 -$26

Q4: July - Sept 2019 $23,404 $2,518 $25,922 -$105 $59 -$46 -$447 -$492

Total -$221 -$486 -$707
Table 1b – Quarterly U.S. Participation in the IMF’s General Department (continued)

-- 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 2020

Q1: Oct - Dec 2019 $23,988 $2,455 $26,444 -$88 $53 -$35 $330 $295

Q2: Jan - Mar 2020 $23,799 $1,983 $25,782 -$62 $45 -$16 -$306 -$323

Q3: Apr - June 2020 $29,069 $1,853 $30,922 -$11 $20 $9 $222 $230

Q4: July - Sept 2020 $31,724 $1,701 $33,425 -$13 $5 -$8 $673 $665

Total -$51 $919 $868
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

2001 $10,919 $6,316 $4,604 $176 -$201 -$25 -$20 -$44

2002 $11,710 $6,481 $5,229 $118 -$100 $18 $134 $152

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

Total -$52 $724 $672

Annual Average -$3 $36 $34
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 2017

Q1: Oct - Dec 2016 $48,882 $47,476 $1,407 $0 -$2 -$2 -$28 -$30

Q2: Jan - Mar 2017 $49,349 $47,918 $1,430 $1 -$4 -$3 $13 $10

Q3: Apr - June 2017 $50,620 $49,138 $1,482 $1 -$4 -$3 $36 $34

Q4: July - Sept 2017 $51,443 $49,912 $1,532 $2 -$5 -$3 $23 $21

Total -$10 $45 $34

FY 2018

Q1: Oct - Dec 2017 $51,864 $50,294 $1,569 $2 -$6 -$3 $12 $8

Q2: Jan - Mar 2018 $52,979 $51,344 $1,635 $3 -$7 -$4 $33 $28

Q3: Apr - June 2018 $51,288 $49,674 $1,614 $3 -$9 -$5 -$53 -$58

Q4: July - Sept 2018 $50,918 $49,274 $1,644 $4 -$9 -$5 -$13 -$18

Total -$18 -$22 -$40

FY 2019

Q1: Oct - Dec 2018 $50,803 $49,117 $1,686 $4 -$11 -$7 -$5 -$12

Q2: Jan - Mar 2019 $50,766 $49,027 $1,739 $5 -$11 -$6 -$3 -$9

Q3: Apr - June 2019 $50,898 $49,096 $1,802 $5 -$11 -$6 $2 -$3

Q4: July - Sept 2019 $49,976 $48,146 $1,830 $5 -$9 -$4 -$35 -$39

Total -$22 -$41 -$63
Table 2b - Quarterly U.S. Participation in the IMF’s SDR Department (continued)

-- 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 2020

Q1: Oct - Dec 2019 $50,749 $48,836 $1,913 $4 -$8 -$4 $26 $22

Q2: Jan - Mar 2020 $50,136 $48,199 $1,937 $4 -$6 -$2 -$25 -$27

Q3: Apr - June 2020 $50,556 $48,584 $1,973 $2 -$1 $1 $15 $16

Q4: July - Sept 2020 $51,733 $49,709 $2,024 $0 -$1 -$1 $46 $45

Total -$6 $62 $57
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).
Annex – Methodological Changes

This report includes two methodological changes to estimate the financial implications of U.S. 

participation in the IMF. These changes arise due to the theoretical nature of this report and the 

inherent need for judgment. When the United States lends to the IMF, the United States earns 

interest on a quarterly basis which can be accounted for through cash deposits into the Treasury 

General Account. However, the United States does not directly borrow from the public each time 

the IMF draws from the U.S. letter of credit. Interest expense associated with financing transactions 

with the IMF must therefore be estimated.

Change #1: calculating stock of IMF lending through quota using the IMF’s reserve position

To estimate the interest expense associated with financing quota-based transactions with the IMF, 

we need to calculate the outstanding stock of lending to the IMF under quota. Prior reports 

calculated this stock using the cumulative monthly changes in the U.S. letter of credit to the IMF 

since 1980, net of any valuation changes and quota increases. However, after consultations with 

IMF staff, we have discovered that this method may count unrelated transfers such as income 

transfers and gold sales toward the outstanding stock of lending to the IMF. Furthermore, this 

method does not account for any lending prior to 1980.1

IMF staff have recommended that we calculate the outstanding stock of lending to the IMF under 

quota using the U.S. reserve position at the IMF. The reserve position comprises all outstanding 

transfers from the United States to the IMF as a part of the U.S. quota subscription, including loans 

under quota, reserve asset payments under a quota increase, and all gold transfers prior to 1978. To 

calculate the total stock of transactions with the IMF, we sum the reserve position and the IMF’s 

No. 1 account.

2 Using the non-gold portion of this stock, we estimate interest expense for U.S. 

dollars and SDRs transferred using the U.S. average cost of funds. For simplicity, we continue to 

estimate interest expense for foreign currencies transferred to the IMF using the SDR interest rate, 

since assets transferred are currencies that make up the SDR.

Change #2: estimating interest costs of transferring SDRs using U.S. average cost of funds

There is an inconsistency in how prior reports calculated interest expense for SDR holdings relative 

to SDR transfers to the IMF. The reports estimated interest expense for SDR holdings using the 

U.S. average cost of funds, as the United States has to finance U.S. dollars in order to purchase 

SDRs. However, the reports also estimated interest expense for SDR transfers to the IMF under a 

quota increase using the SDR interest rate, due to the decrease in interest-bearing assets. To resolve 

this inconsistency, we only use the U.S. average cost of funds to estimate interest expenses related 

to SDR holdings and transfers, as the underlying cost is the U.S. dollar.

1 Prior to 1980, the U.S. lent 1.675 billion SDR worth of gold (about $2.3 billion in 2018) to the IMF—for which the 

U.S. neither receives interest nor pays interest to finance—and about $1 billion in U.S. dollars, for which the United 

States earns interest and incurs an interest expense.

2 The No. 1 account represents part of the IMF currency holdings held at the Federal Reserve Bank of New York which 

is used for the IMF’s operations, including quota subscription payments, purchases, and repurchases. The United States 

is required to maintain a minimum in No. 1 account equal to 1/4 of 1 percent of the U.S. quota (currently about $290 

million).
Table 3 - Methodology Comparison

-- General Department --

U.S. Fiscal Year, Annually

(millions of U.S. Dollars)

Year Transactions Interest Expense Net Interest Income

Total U.S. Transactions with the IMF

Cumulative

Interest Expense Associated with Financing U.S. 

Transactions with the IMF

Net Interest Income

Prior 

Methodology

Change #1 

Only1

Changes #1 

and #22

Prior 

Methodology

Change #1 

Only1

Changes #1 

and #22

Prior 

Methodology

Change #1 

Only1

Changes #1 

and #22

2001 $15,632 $18,528 $18,528 -$484 -$504 -$539 $7 -$12 -$47

2002 $17,635 $20,977 $20,977 -$337 -$346 -$333 $34 $25 $38

2003 $19,136 $24,200 $24,200 -$283 -$308 -$286 $65 $41 $62

2004 $13,867 $19,577 $19,577 -$249 -$296 -$282 $50 $3 $18

2005 $7,772 $13,428 $13,428 -$237 -$330 -$357 $79 -$14 -$41

2006 $1,023 $6,756 $6,756 -$85 -$142 -$205 $125 $68 $5

2007 -$1,375 $4,616 $4,616 -$4 -$35 -$78 $103 $72 $29

2008 $2,285 $4,838 $4,838 -$5 -$118 -$81 $54 -$59 -$22

2009 $15,655 $13,513 $13,513 -$30 -$38 -$45 $10 $2 -$5

2010 $14,692 $13,082 $13,082 -$60 -$17 -$43 -$36 $6 -$20

2011 $24,395 $28,958 $28,958 -$97 -$80 -$87 -$33 -$17 -$24

2012 $35,180 $35,407 $35,407 -$77 -$76 -$92 -$24 -$24 -$40

2013 $35,892 $33,614 $33,614 -$96 -$79 -$102 -$73 -$55 -$78

2014 $30,467 $28,519 $28,519 -$118 -$88 -$119 -$89 -$60 -$91

2015 $31,612 $19,035 $19,035 -$82 -$43 -$74 -$71 -$33 -$64

2016 $22,231 $18,643 $18,643 -$61 -$26 -$64 -$53 -$18 -$56

2017 $24,470 $19,336 $19,336 -$120 -$98 -$140 -$68 -$46 -$89

2018 $29,761 $20,315 $20,315 -$255 -$191 -$266 -$131 -$68 -$143

2019 $44,419 $25,922 $25,922 -$513 -$342 -$431 -$303 -$132 -$221

2020 $53,569 $33,425 $33,425 -$246 -$143 -$174 -$123 -$20 -$51

Total -$3,437 -$3,300 -$3,800 -$478 -$341 -$841

Annual Average -$172 -$165 -$190 -$24 -$17 -$42

Note: Calculations under the SDR Department remain unchanged from previous reports. “Remuneration Received by U.S. from IMF & Refund of Burden 

Sharing” and “Valuation Changes on U.S. Reserve Position” also remain unchanged from previous reports.

1

“Change #1 Only” only incorporates methodology change #1, as discussed in the Annex.

2

“Changes #1 and #2” incorporates change #1 and change #2, as discussed in the Annex. This is the method used in the main body of the paper.