Iraqi Dinar Discussion Board

[Panhead]

SDR information..........
I thought with the new SDR rate about to be updated on the IMF site some might like to read some information on what it's all about.


The SDR is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries. SDRs are allocated to member countries in proportion to their IMF quotas. The SDR also serves as the unit of account of the IMF and some other international organizations. Its value is based on a basket of key international currencies.

Why was the SDR created and what is it used for today?

The Special Drawing Right (SDR) was created by the IMF in 1969 to support the Bretton Woods fixed exchange rate system. A country participating in this system needed official reserves—government or central bank holdings of gold and widely accepted foreign currencies—that could be used to purchase the domestic currency in world foreign exchange markets, as required to maintain its exchange rate. But the international supply of two key reserve assets— gold and the U.S. dollar—proved inadequate for supporting the expansion of world trade and financial development that was taking place. Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF.

However, only a few years later, the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime. In addition, the growth in international capital markets facilitated borrowing by creditworthy governments. Both of these developments lessened the need for SDRs.

Today, the SDR has only limited use as a reserve asset, and its main function is to serve as theunit of account of the IMF and some other international organizations. The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions.


http://www.imf.org/external/np/fin/t...ategory=EXCHRT


Date Exchange Rate
April 30, 2007 0.000516326
April 28, 2006 0.000460244
April 29, 2005 0.000451682
September 22, 2004 0.000466938
September 08, 2003 2.53758
April 30, 2002 2.53758
April 30, 2000 2.43852
April 30, 1999 2.38074
April 30, 1998 2.38881
April 30, 1997 2.3558
April 30, 1996 2.21848
April 30, 1995 2.04504
April 30, 1994 2.26323
April 30, 1993 2.26004
April 30, 1992 2.34852
April 30, 1991 2.39924
April 30, 1990 2.46985
April 28, 1989 2.48283
April 29, 1988 2.32407
April 30, 1987 2.46269
April 30, 1986 2.73556
April 30, 1985 3.24557


Iraq: Financial Position in the Fund
as of March 31, 2008

Summary of IMF members’ quota, reserve position, SDR holdings, outstanding credit, recent lending arrangements, projected payments due to the IMF, and monthly historical transactions with the Fund.
I. Membership Status: Joined: December 27, 1945; Article XIV

II. General Resources Account: SDR Million %Quota
Quota 1,188.40 100.00
Fund holdings of currency 1,017.31 85.60
Reserve Position 171.10 14.40
Holdings Exchange Rate

III. SDR Department: SDR Million %Allocation
Net cumulative allocation 68.46 100.00
Holdings 89.82 131.20

IV. Outstanding Purchases and Loans: None

V. Latest Financial Arrangements:

Date of Expiration Amount Approved Amount Drawn
Type Arrangement Date (SDR Million) (SDR Million)
Stand-By Dec 19, 2007 Mar 18, 2009 475.36 0.00
Stand-By Dec 23, 2005 Dec 18, 2007 475.36 0.00

VI. Projected Payments to Fund 1/
(SDR Million; based on existing use of resources and present holdings of SDRs):
Forthcoming
2008 2009 2010 2011 2012
Principal





Charges/Interest
0.00 0.00 0.00 0.00 0.00
Total
0.00 0.00 0.00 0.00 0.00
1/ When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.


VII. Implementation of HIPC Initiative: Not Applicable

VIII. Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable

Prepared by Finance Department