REPORT TO CONGRESS ON FINANCIAL IMPLICATIONS OF 

U.S. PARTICIPATION IN 

THE INTERNATIONAL MONETARY FUND

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 supports U.S. jobs, exports, and financial markets. During financial crises abroad, the 

U.S. leverages the IMF as the first responder to protect our domestic economy by promoting 

global growth and stability. Through its three main activities—surveillance, technical assistance, 

and lending—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 401Ks for American households. U.S. participation in the IMF is a good deal for 

America, for the health of the U.S. economy, and for the prosperity of American workers.

This report provides quarterly data for the full fiscal years 2013 through 2015 and annual data for 

full fiscal years 2001-2015. It provides information on U.S. participation in the IMF’s General 

Department as well as the financial implications of U.S. participation in the SDR Department of 

the IMF. Considering the last 15 years, the cumulative net valuation and interest effects for U.S. 

participation in the IMF’s General and SDR Departments have reached positive $1.7 billion.

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 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 data on the financial implications of 

U.S. participation in the IMF vary over time, and may be positive or negative for any given 

quarter or year. For example, negative net interest income could arise when U.S. interest rates 

(associated with financing U.S. transactions with the IMF) are higher than the Special Drawing 

Right (SDR) 1 interest rate (which is the basis for the rate that the IMF pays the United States for 

the use of U.S. financing). Negative valuation changes can occur when the U.S. dollar 

strengthens relative to the SDR.

Economic theory suggests that the fluctuations on 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 differentials. According to this 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 differentials in interest rates 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 any given period in time.

 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.
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 prepared 

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

http://www.treasury.gov/resource-center/international/int-monetary-fund/Pages/imf.aspx.

Data on the average annual and cumulative income effect and valuation changes over the fifteen 

year period from 2001 to 2015 are provided in Table 1a. Data on the net interest income and 

valuation changes related to U.S. participation in the IMF’s General Department during fiscal 

years 2013 through 2015 are provided in Table 1b. 

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

the fifteen year period from 2001 to 2015 are provided in Table 2a. Data for net interest income 

and valuation changes related to U.S. participation in the SDR Department of the IMF during 

fiscal years 2013 through 2015 are provided in Table 2b. 

The footnotes to the tables explain the columns shown and provide pertinent information and 

assumptions used in the calculations.

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

A number of elements go into calculating the financial implications of U.S. participation in the

IMF.

• Interest foregone 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 

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

loans to the IMF (under the General Arrangement to Borrow or New Arrangements to 

Borrow).

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

• 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. (The dollar value of the reserve position 

goes up when the dollar depreciates and declines when the dollar appreciates.)

Over the period fiscal year 2001 through fiscal year 2015, the average annual valuation change in 

the U.S. Reserve Position was positive $62 million, while the cumulative valuation change was 

positive $929 million. As shown in Table 1b, for the fiscal years 2013, 2014, and 2015 the 

financial implications of U.S. participation in the General Department reflected a net interest 

income effect of negative $73 million, negative $89 million, and negative $71 million,

respectively. The quarterly figures can fluctuate considerably at times. However, as shown in 

Table 1b, over the period fiscal year 2001 through fiscal year 2015, the average annual net 

interest income effect of U.S. participation in the General Department was positive $13 million, 

while the cumulative net interest income effect was positive $201 million. The valuation change 

in the U.S. Reserve Position for the fiscal years 2013, 2014, and 2015, was negative $184 

million, negative $643 million, and negative $1.09 billion respectively, reflecting a stronger U.S. 

dollar, particularly in 2015.

3

 

 2 When the United States transfers reserve assets 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 calculating the 

interest foregone, since assets transferred are either SDRs or currencies that make up the SDR. 3 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 
In the past three years, negative net interest income arose from the fact that, under current market 

conditions, the interest rate associated with financing U.S. transactions with the IMF is higher

than the interest rate that the IMF pays on the U.S. reserve position in the IMF. With regard to 

valuation, because IMF quotas are denominated in the SDR, when the dollar depreciates against 

the SDR a valuation gain is recorded, while when the dollar appreciates there is a valuation loss. 

Tables 1 and 2 show how these non-realized valuation gains and losses fluctuate from quarter to 

quarter.

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

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, the U.S. cash position is improved and federal borrowing requirements are 

reduced.

As is the case with U.S. participation in the General Department, participation in the SDR 

Department has both interest-related and valuation-related implications. The dollar value of U.S. 

holdings of SDRs can fluctuate daily; for purposes of this report, the interest and valuation

related implications are calculated quarterly.

As shown in Table 2a, over the period fiscal year 2001 through fiscal year 2015, the average 

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

$1 million, while the cumulative net interest income effect was positive $9 million. During the 

same period, the average annual valuation change on U.S. SDR holdings was positive $46 

million, while the cumulative valuation change was positive $695 million. 

As shown in Table 2b, for the fiscal years 2013, 2014, and 2015, the net interest income effect of 

U.S. participation in the SDR Department was negative $2 million, negative $3 million, and 

negative $3 million, respectively. The valuation change on U.S. SDR holdings for each quarter

of fiscal years 2013, 2014, and 2015 was negative $4 million, negative $27 million, and negative 

$42 million, respectively, again reflecting the effects of dollar appreciation.

4

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

Attachments

 

year 2000, submitted in December 2000 and available at http://www.treasury.gov/press-center/pressreleases/Pages/report3073.aspx. 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 SDR Department” in the report prepared for the fourth quarter of fiscal year 

2000, submitted in December 2000 and available at http://www.treasury.gov/press-center/pressreleases/Pages/report3073.aspx.
Table 1a

Valuation Total

2001 -$484 $492 $0 $7 -$47 -$40

2002 -$337 $372 $0 $34 $446 $480

2003 -$283 $348 $0 $65 $1,722 $1,787

2004 -$249 $300 $0 $50 $648 $698

2005 -$237 $316 $0 $79 -$54 $25

2006 -$85 $210 $0 $125 $107 $232

2007 -$4 $107 $0 $103 $259 $362

2008 -$5 $59 $0 $54 -$95 -$41

2009 -$30 $40 $0 $10 $548 $558

2010 -$60 $23 $0 -$36 -$166 -$202

2011 -$96 $59 $4 -$33 -$226 -$259

2012 -$77 $39 $13 -$24 -$298 -$322

2013 -$96 $14 $9 -$73 -$184 -$257

2014 -$118 $14 $14 -$89 -$643 -$732

2015 -$82 $5 $6 -$71 -$1,088 -$1,159

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

Average FY2001-FY2015 $13 $62

Cumulative FY2001-FY2015 $201 $929

Interest Calculations

Fiscal Year 

Ended

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 

Net Interest 

Income

Valuation 

Changes on 

U.S. Reserve 

Position Total

Net Interest Income and Valuation Changes Related to U.S. Participation in the IMF

 -- General Department --

U.S. Fiscal Year 

(millions of U.S. Dollars)
Table 1b

Valuation Total

(Col 1+2) (Col. 4+5+6) (Col 7+8)

 Col. 1 Col. 2 Col. 3 Col. 4 Col.5 Col.6 Col. 7 Col. 8 Col. 9

2013

Q1: Oct - Dec 12 -22,336 -11,770 -34,106 -$22 $4 $2 -$15 -$77 -$92

Q2: Jan - Mar 13 -21,710 -13,254 -34,964 -$21 $3 $2 -$17 -$556 -$573

Q3: Apr -June 13 -20,958 -13,718 -34,676 -$21 $4 $3 -$14 $45 $31

Q4: July -Sept 13 -22,087 -13,803 -35,890 -$32 $3 $2 -$26 $404 $378

Total -$96 $14 $9 -$73 -$184 -$257

2014

Q1: Oct - Dec 13 -19,339 -13,721 -33,060 -$29 $3 $3 -$23 -$36 -$59

Q2: Jan - Mar 14 -18,290 -13,718 -32,008 -$32 $4 $4 -$24 $62 $38

Q3: Apr -June 14 -17,969 -14,760 -32,729 -$30 $4 $4 -$22 -$92 -$114

Q4: July -Sept 14 -16,137 -14,328 -30,465 -$27 $3 $3 -$20 -$577 -$597

Total -$118 $14 $14 -$89 -$643 -$732

2015

Q1: Oct - Dec 14 -14,952 -12,944 -27,896 -$23 $2 $2 -$20 -$327 -$347

Q2: Jan - Mar 15 -12,424 -11,278 -23,702 -$18 $1 $2 -$15 -$632 -$647

Q3: Apr -June 15 -12,089 -10,683 -22,771 -$16 $1 $1 -$13 -$18 -$31

Q4: July -Sept 15 -20,746 -10,864 -31,610 -$26 $1 $1 -$24 -$111 -$135

Total -$82 $5 $6 -$71 -$1,088 -$1,159

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

Fiscal Year 

Ended

Valuation 

Changes on 

U.S. Reserve 

Position Total

Net Interest Income and Valuation Changes Related to U.S. Participation in the IMF

 -- General Department --

U.S. Fiscal Year, Quarterly 

(millions of U.S. Dollars)

Transactions with the IMF Interest Calculations

Transactions under 

U.S. Q uota (Letter 

of Credit 

&Transfers of 

Reserve Assets) 

Cumulative

U.S. Loans to 

IMF 

(Under 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 

Net Interest 

Income
TABLE 1b

Footnotes to Columns 

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

Letter of Credit (75% portion of the U.S. quota) and the transfers of reserve assets to the IMF (generally 

25% of the U.S. quota). This does not include cumulative valuation changes.

Column 2: Total cumulative 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. 

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 paid on incremental public borrowing to fund the IMF's use of dollars under the Letter of 

Credit and any transfer of dollars to the IMF under loan arrangements (Supplementary Financing Facility, 

GAB, NAB), as well as interest income forgone on reserve assets transferred to the IMF at the time of a 

quota increase. As Treasury increases its net borrowing from the public in order to provide resources to 

the IMF under the Letter of Credit or 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 reserve assets to

the IMF, the SDR interest rate is used.

Column 5: The U.S. reserve position in the IMF is an interest-earning 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: These amounts constitute the interest payments the United States has received on its loans to 

the IMF under the SFF, GAB, and NAB. 

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

Department of the IMF.

Column 8: 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 9: The total of net interest and valuation changes, obtained by summing column 7 and column 8. 
Table 2a Net Interest and Valuation Changes Related to U.S. Participation in the IMF

Interest Calculations Valuation Total

Interest Income 

on Net SDR 

Holdings

Interest Expense 

Associated with 

Financing 

Cumulative U.S. 

SDR 

Transactions

Net Interest 

Income

Valuation 

Changes Total

2001 $176 -$201 -$25 -$20 -$44

2002 $118 -$100 $18 $134 $152

2003 $97 -$68 $29 $396 $425

2004 $87 -$79 $8 $137 $145

2005 $114 -$106 $8 -$14 -$5

2006 $44 -$62 -$17 $25 $8

2007 $63 -$77 -$14 $81 $67

2008 $59 -$44 $15 -$3 $12

2009 $20 -$14 $7 $33 $40

2010 $6 -$17 -$11 -$38 -$50

2011 $7 -$6 $1 $45 $46

2012 $1 -$3 -$1 -$9 -$10

2013 $1 -$3 -$2 -$4 -$6

2014 $1 -$4 -$3 -$27 -$31

2015 $0 -$4 -$3 -$42 -$45

Average FY2001-2015 $1 $46

Cumulative FY2001-2015 $9 $695

(millions of U.S. Dollars)

U.S. Fiscal Year

 -- SDR Department --
Table 2b Net Interest and Valuation Changes Related to U.S. Participation in the IMF

 -- SDR Department --

U.S. Fiscal Year, Quarterly

(millions of U.S. Dollars)

Net SDR Holdings Interest Calculations Valuation Total

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 

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

2013

Q1: Oct - Dec 12 $55,050 $54,277 $773 $0 -$1 -$1 -$3 -$3

Q2: Jan - Mar 13 $53,704 $52,945 $759 $0 -$1 $0 -$19 -$19

Q3: Apr - June 13 $53,881 $53,113 $768 $0 -$1 $0 $2 $2

Q4: July - Sept 13 $54,966 $54,177 $789 $0 -$1 -$1 $15 $15

Total $1 -$3 -$2 -$4 -$6

2014

Q1: Oct - Dec 13 $55,184 $54,386 $798 $0 -$1 -$1 $3 $2

Q2: Jan - Mar 14 $55,394 $54,585 $809 $0 -$1 -$1 $3 $2

Q3: Apr - June 14 $55,411 $54,594 $817 $0 -$1 -$1 $0 -$1

Q4: July - Sept 14 $53,148 $52,358 $790 $0 -$1 -$1 -$33 -$34

Total $1 -$4 -$3 -$27 -$31

2015

Q1: Oct - Dec 14 $51,941 $51,166 $775 $0 -$1 -$1 -$18 -$19

Q2: Jan - Mar 15 $49,459 $48,718 $741 $0 -$1 -$1 -$37 -$38

Q3: Apr - June 15 $50,425 $49,668 $757 $0 -$1 -$1 $14 $14

Q4: July - Sept 15 $50,332 $49,574 $758 $0 -$1 -$1 -$1 -$2

Total $0 -$4 -$3 -$42 -$45

Note: Detail may not add to total due to rounding.
TABLE 2b

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 2 

minus Column 3), 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 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 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 7 and 8).