QUARTERLY REPORT TO CONGRESS ON 

FINANCIAL IMPLICATIONS OF U.S. PARTICIPATION 

IN THE INTERNATIONAL MONETARY FUND 

MARCH 2003 

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

Consolidated Appropriations Act for FY 2000'. The report focuses excltisively on tlie financial 

implications of US. participation in the IMF and does not attempt to quantify the broad and 

substantial economic benefits to the United States and the global economy resulting from US. 

participation in the IMF. 

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

associated with US. participation in the International Monetary Fund (IMF). The broader 

context for the financial implications of U.S., participation in tlie IMF and the methodology used 

in deriving these figures is laid out in previous reports; the methodology is also summarized 

briefly in the footnotes attached to the tables. Reports under this provision are prepared quarterly 

and made available to the public on the Treasury wehsite: 

littp://www.treas.~ovlpresslreports2.Iitml. 

This report provides quarterly data for fiscal year 2002 and the first quarter of fiscal year 2003. 

It provides information on U.S. participation in tlie 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 US. participation in the SDR Department 

of the IMF., 

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

Department during tlie fourth quarter of fiscal year 2002, ended September 30, 2002, and the first 

quarter of fiscal year 2003, ended December 3 1,2002, are provided in Table 1. For comparison 

purposes, previously-reported data for the first three quarters of fiscal year 2002 are also 

provided., (The data for the third quarter reflects a correction to the data previously provided.) 

Similarly, data for net interest and valuation changes related to LJS participation in the SDR 

Department ofthe IMF during fiscal year 2002 and tlie first quarter of fiscal year 2003 are 

provided in Table 2. The attached footnotes explain the columns shown on each table and 

provide pertinent information and assumptions used in the calculations. 

' Section 504(b) ofAppendix E., Title V ofthe Consolidated Appropriations Act for FY 2000, Public L.aw 106-1 13, 

I13 Stat 1501A-317 requires that the Secretary of the Treasury prepare and transmit to the appropriate committees 

ofthe Congress a quarterly report on the costs or benefits of United States participation in the International 

Monetary Fund (IMF), detailing tlie costs or benefits to tlie United States, as well as valuation gains or losses 011 the 

United States' reserve position in the IMF. ' 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 ofa basket of currencies --the 

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

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

valuation basket. 
As shown in Table 1, for the third quarter of FY 2002, the financial implications of [J.S. 

participation in the General Department reflected a net interest effect of negative $6 million 

(rather than the positive $15 million previously reported); for the fourth quarter of FY 2002 the 

net interest effect was positive $9 million. The valuation changes for the fourth quarter were 

negative $1 19 million. For the first quarter of the fiscal year beginning on October 1,2002 (FY 

2003), the financial implications of US. participation in the General Department reflected a net 

interest effect of positive $13 million. The valuation changes for the first quarter of FY 2003 

were positive $580 million. 

As shown in Table 2, for the fourth quarter ofFY 2002, the net interest effect 0fU.S. 

participation in the SDR Department was positive $4 million. Over the same period, the 

valuation changes 011 SDR holdings were negative $30 million.. For the first quarter of the fiscal 

year beginning on October 1,2002 (FY 2003), the financial implications of U.S. participation in 

the SDR Department reflected a net interest effect of positive $5 million. The valuation changes 

for the first quarter of FY 2003 were positive $146 million. 4 

Attachments 

For an explanation of the methodology used in deriving tliese figures, see 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. litm 

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

Implications ofU,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 Iittp://www.~eas.gov/press/releases/report3073 .litm, 

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