REPORT TO CONGRESS ON FINANCIAL IMPLICATIONS OF 

U.S. PARTICIPATION IN 

THE INTERNATIONAL MONETARY FUND

FY2011 and FY2012

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 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 prepared under Section 504(b) are made available to the 

public on the Treasury website: http://www.treasury.gov/resource-center/international/intmonetary-fund/Pages/imf.aspx.

This report provides quarterly data for the full fiscal years 2011 and 2012.

1

 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 fiscal years 2011 and 2012 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 fiscal years 2011 and 2012 are provided in Table 2. For 

comparison purposes, data for the last two fiscal years are also provided.

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

assumptions used in the calculations.

 

1 Data for the first quarter of fiscal year 2011 was presented in the last report under Section 504(b), but is included in 

this report for ease of presentation. 

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.
As shown in Table 1, for the fiscal years 2011 and 2012, the financial implications of U.S. 

participation in the General Department reflected a net interest income effect of negative $57

million. The quarterly figures can fluctuate considerably at times. However, over the period 

fiscal year 2000 through fiscal year 2012, the average annual net interest income effect of U.S. 

participation in the General Department was positive $30 million, while the cumulative net 

interest income effect was positive $391 million. The valuation change in the U.S. Reserve 

Position for the fiscal years 2011 and 2012 was negative $524 million.3 Over the period fiscal 

year 2000 through fiscal year 2012, the average annual valuation change in the U.S. Reserve 

Position was positive $134 million, while the cumulative valuation change was positive $1,741

million.

Negative net interest income arises from the fact that under current market conditions, the 

interest rate associated with financing U.S. transactions with the IMF is larger than the interest 

rate that the IMF pays on the U.S. reserve position in the IMF. Because IMF quotas are 

denominated in the SDR, when the SDR appreciates against the dollar a valuation gain is 

recorded, while when the SDR depreciates there is a valuation loss. Tables 1 and 2 show how 

these non-realized valuation gains and losses fluctuate from quarter to quarter. 

As shown in Table 2, for the fiscal years 2011 and 2012, the net interest income effect of U.S. 

participation in the SDR Department was zero. The valuation change on U.S. SDR holdings for 

the first to fourth quarters of fiscal years 2011 and 2012 was positive $36 million.4

Over the period fiscal year 2000 through fiscal year 2012, the average annual net interest income 

effect of U.S. participation in the SDR Department was negative $5 million, while the 

cumulative net interest income effect was negative $66 million. During the same period, the 

average annual valuation change on U.S. SDR holdings was positive $40 million, while the 

cumulative valuation change was positive $522 million. 

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

Attachments

 

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 

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 1 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)

Valuation Total

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

2009

Q1: Oct - Dec 08 -1,799 0 -1,799 -$3 $13 $ 0 $10 $98 $108Q2: Jan - Mar 09 -2,555 0 -2,555 -$3 $11 $ 0 $ 8 -$236 -$228Q3: Apr -June 09 -10,352 0 -10,352 -$7 $ 7 $ 0 $ 0 $427 $427Q4: July -Sept 09 -15,655 0 -15,655 -$18 $ 9 $ 0 -$9 $259 $250

Total -$30 $40 $ 0 $10 $548 $5582010

Q1: Oct - Dec 09 -13,775 0 -13,775 -$15 $ 7 $ 0 -$8 -$104 -$112Q2: Jan - Mar 10 -14,357 0 -14,357 -$16 $ 5 $ 0 -$11 -$369 -$380Q3: Apr -June 10 -14,434 0 -14,434 -$15 $ 5 $ 0 -$10 -$311 -$321Q4: July -Sept 10 -14,692 0 -14,692 -$14 $ 6 $ 0 -$8 $618 $610

Total -$60 $23 $ 0 -$36 -$166 -$2022011

Q1: Oct - Dec 10 -14,371 0 -14,371 -$15 $ 8 $ 0 -$7 -$125 -$132Q2: Jan - Mar 11 -20,830 0 -20,830 -$22 $ 9 $ 0 -$13 $220 $207Q3: Apr -June 11 -19,859 -3,795 -23,654 -$34 $16 $ 0 -$18 $234 $216Q4: July -Sept 11 -18,163 -6,230 -24,393 -$25 $26 $ 4 $ 4 -$555 -$551

Total -$96 $59 $ 4 -$33 -$226 -$2592012

Q1: Oct - Dec 11 -18,698 -7,481 -26,179 -$17 $18 $ 4 $ 6 -$389 -$383Q2: Jan - Mar 12 -18,902 -8,350 -27,252 -$18 $ 8 $ 3 -$7 $206 $199Q3: Apr -June 12 -19,416 -11,011 -30,427 -$22 $ 7 $ 3 -$12 -$494 -$506Q4: July -Sept 12 -23,305 -11,873 -35,178 -$21 $ 6 $ 3 -$12 $379 $367

Total -$77 $39 $13 -$24 -$298 -$322Note: Detail may not add to total due to rounding.

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

Fiscal Year Ended 

9/30

Valuation 

Changes on 

U.S. Reserve 

Position

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
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 (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 FY1998) and the New Arrangements to Borrow (NAB, in FY1999

and in FY2011). U.S. loans under the GAB and NAB in 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 (SFF, 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 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 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. During Q4 2009, as a result of a general SDR 

allocation on August 31, 2009, and a special SDR allocation on September 9, 2009, cumulative U.S. SDR 

allocations increased by SDR 27,539,140,146 and SDR 2,877,010,667, respectively. Source: IMF.

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).