Allocation of Special Drawing Rights For The Eleventh Basic Period

On June 25, 2021, the Executive Board discussed a staff paper setting forth the considerations underlying the case for a general allocation of special drawing rights (SDRs) of an amount equivalent to US$650 billion (about SDR 456 billion) ...

Author: International Monetary Fund

Publisher: International Monetary Fund

ISBN: 9781513585970

Category: Business & Economics

Page: 10

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On June 25, 2021, the Executive Board discussed a staff paper setting forth the considerations underlying the case for a general allocation of special drawing rights (SDRs) of an amount equivalent to US$650 billion (about SDR 456 billion) during the Eleventh Basic Period and the key features that could be included in the Managing Director’s proposal for this general allocation.

Using the Special Drawing Rights SDR as a lever to reform the international monetary system Usando los derechos especiales de giro DEG como herramienta para reformar el sistema monetario internacional

The "Robert Triffin International" association (RTI), based at the University of Louvain-la-Neuve launched in 2009 the “Triffin 21 Initiative” to address the wellknown but still unresolved “Triffin's dilemma”, namely the asymmetry ...

Author: Robert Triffin International Association - Rti

Publisher: Versant Sud

ISBN: 9782930358703

Category: Business & Economics

Page: 60

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The "Robert Triffin International" association (RTI), based at the University of Louvain-la-Neuve launched in 2009 the “Triffin 21 Initiative” to address the wellknown but still unresolved “Triffin's dilemma”, namely the asymmetry created by the use of a national currency (the US dollar) as the main international currency, which introduces a “built-in destabilizer”. The resulting global monetary waves have played a fundamental role in the recent global crisis. The first-best solution to this dilemma, Triffin claimed, would consist of a multilateral reserve currency issued by the IMF, but policymakers so far have stuck to the status quo. RTI thus set up in 2013 an “SDR Working Party” which has issued this synthetic report, proposing to break out of this dead-end with practical proposals aimed at improving the use of the IMF’s “Special Drawing Rights” (SDR) and developing a private SDR market. La Asociación “Robert Triffin Internacional (RTI), basada en la Universidad de Louvain-la-Neuve, lanzó en 2009 la “Iniciativa Triffin 21” con el fin de re-examinar el conocido pero no aun resuelto “Dilema de Triffin”, especialmente la asimetría creada por el uso de una moneda nacional (el dólar de los EE-UU), lo que introduce un “destabilizador sistémico”. Las ondas monetarias mundiales así generadas desempeñan un papel fundamental en la crisis reciente. La mejor solución lógica a este dilema, tal como Triffin lo formuló, es la creación de una moneda de reserva multilateral emitida por el FMI, pero los responsables políticos quedan pegados al status quo. Por lo tanto, RTI ha creado en 2013 un “Grupo de trabajo sobre los DEG” cuyos resultados son presentados en este informe sintético con el fin de poder salir del inmovilismo al formular propuestas aplicables capaces de fomentar el uso del DEG oficial y el desarrollo de un mercado privado del DEG.

Users Guide to the SDR

This guide explains to participants in the Special Drawing Rights Department and prescribed holders of SDRs the transactions and operations permitted under the IMF's Articles of Agreement and applicable decisions of the Executive Board.

Author: International Monetary Fund

Publisher: International Monetary Fund

ISBN: STANFORD:36105017527008

Category: Business & Economics

Page: 93

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This guide explains to participants in the Special Drawing Rights Department and prescribed holders of SDRs the transactions and operations permitted under the IMF's Articles of Agreement and applicable decisions of the Executive Board.

Proposal For a General Allocation of Special Drawing Rights

On June 25, the Executive Board discussed a proposal for a historic US$650 billion general allocation of SDRs to address the long-term global need to supplement existing reserve assets.

Author: International Monetary Fund

Publisher: International Monetary Fund

ISBN: 9781513583549

Category: Business & Economics

Page: 50

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On June 25, the Executive Board discussed a proposal for a historic US$650 billion general allocation of SDRs to address the long-term global need to supplement existing reserve assets. Following concurrence by the Executive Board on July 8, the Managing Director submitted the proposal to the Board of Governors on July 9 for its approval by August 2. If approved, which requires an 85 percent majority of the total voting power, the allocation would become effective by the end of August. The proposal makes a case for an allocation of US$650 billion (about SDR 456 billion), based on an assessment of IMF member countries’ long-term global reserve needs. It also includes measures to enhance the transparency and accountability in the reporting and use of SDRs while preserving the reserve asset characteristic of the SDR. The general allocation would help many EMDCs that are liquidity constrained smooth needed adjustment and avoid distortionary policies, while providing scope for spending on crisis response and vaccines.

The International Monetary Fund s Special Drawing Rights Proposal

Reviews IMF special drawing rights proposals to stabilize international financial relations by pooling international gold and currency reserves to serve as assets backing national currencies.

Author: United States. Congress. House. Committee on Banking and Currency. Subcommittee on International Finance

Publisher:

ISBN: UCAL:$B654958

Category: International finance

Page: 49

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Reviews IMF special drawing rights proposals to stabilize international financial relations by pooling international gold and currency reserves to serve as assets backing national currencies.

The Case for a General Allocation of SDRs During the Tenth Basic Period

This paper is the outcome of a periodic process regarding the allocation (or cancellation) of Special Drawing Rights (SDRs), and is a report by the Managing Director to the Board of Governors and the Executive Board along with a staff paper ...

Author:

Publisher: International Monetary Fund

ISBN: 9781498338783

Category: Business & Economics

Page: 30

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This paper is the outcome of a periodic process regarding the allocation (or cancellation) of Special Drawing Rights (SDRs), and is a report by the Managing Director to the Board of Governors and the Executive Board along with a staff paper that assesses the merits of a general allocation. Following consultations with the Executive Board on the case for a general allocation, the Managing Director decided not to make a proposal for a general SDR allocation at this time. Though there was openness among many Directors to consider a proposal in the upcoming basic period, there was also a widely-shared sense that it would be premature at this stage, owing to ongoing discussions on the role of the SDR in the context of reform of the international monetary system. Decisions by the Fund on a general allocation or cancellation of SDRs take place at regular intervals (or basic periods) of normally five years, with the Managing Director’s report due six months before each new basic period. The tenth basic period begins on January 1, 2012. The report can either propose a general SDR allocation (or cancellation of previous allocations), or conclude that the conditions set out in the IMF’s Articles of Agreement for an allocation or cancellation of SDRs are not currently in place, including broad support among IMF members that participate in the SDR Department. Under the IMF’s Articles of Agreements, the Managing Director may also propose allocations of SDRs at the request of the Board of Governors or the Executive Board. In this regard, an allocation could be considered if there is a long-term global need for reserves that could be usefully filled at least in part by SDRs and if it would not lead to inflationary pressures, assuming there is broad support among IMF members participating in the SDR Department.

Floating Currencies Gold and SDR s

The Articles of the Fund require each member to establish a par value for its currency in terms of gold as a common denominator.

Author: International Monetary Fund

Publisher: INTERNATIONAL MONETARY FUND

ISBN: 1451938322

Category: Business & Economics

Page: 96

View: 904

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This paper outlines legal developments related to floating currencies, gold, and special drawing rights (SDRs) in the IMF. The Articles of the Fund require each member to establish a par value for its currency in terms of gold as a common denominator. Alternatively, the par value may be expressed in terms of the U.S. dollar of the weight and fineness in effect on July 1, 1944, the effect of which is simply to express the par value indirectly in terms of gold. In this paper, application of existing provisions and valuation of the SDR are discussed in detail, and the new provisions and practices are also elaborated.

Guidance Note for Fund Staff on the Treatment and Use of SDR Allocations

It presents a consistent framework for IMF country teams to assess the macroeconomic implications of the SDR allocation at the country level, covering the following areas: • Statistical and accounting treatment. • General macroeconomic ...

Author: International Monetary Fund

Publisher: International Monetary Fund

ISBN: 9781513593340

Category: Business & Economics

Page: 45

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This Note provides guidance for staff on the treatment and use of allocations of Special Drawing Rights (SDRs). It presents a consistent framework for IMF country teams to assess the macroeconomic implications of the SDR allocation at the country level, covering the following areas: • Statistical and accounting treatment. • General macroeconomic implications and advice. • Debt sustainability analysis. • Transparency and accountability. • Reserve management. • Implications for Fund-supported programs.

Review of the Method of Valuation of the SDR

The review considers the composition, size, and weighting of the SDR currency basket and the financial instruments used to determine the SDR interest rate.

Author:

Publisher: International Monetary Fund

ISBN: 9781498344012

Category: Business & Economics

Page: 99

View: 706

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This paper provides the basis for the quinquennial review of the method of valuation of the Special Drawing Right (SDR). The review considers the composition, size, and weighting of the SDR currency basket and the financial instruments used to determine the SDR interest rate. The analysis in this paper is guided by the informal discussion of Executive Directors in July on initial considerations for the review. In light of Directors’ preference, the two currency selection criteria for SDR inclusion are maintained. Since China continues to meet the export criterion, a key focus of this paper is on assessing whether the renminbi (RMB) could be determined to be a freely usable currency, which is the second criterion. The paper documents the rising international use and trading of the RMB since the 2010 SDR valuation review. A range of indicators suggests that use of the RMB in international transactions has risen substantially, albeit from a low base. The paper also finds that the RMB has become far more actively traded in foreign exchange markets, with sufficient depth to support operations of the size Fund members might undertake without an appreciable change in the exchange rate. Full Text also available in Chinese.

Special Drawing Rights SDRs

At least until the Second Amendment negotiations, however, the Fund promoted a system in which the SDR was to play a central role. Had this interest in the SDR been a preoccupation only of the Fund, it would not have reflected much.

Author: Christopher Wilkie

Publisher: Oxford University Press

ISBN: 9780199606467

Category: Business & Economics

Page: 297

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Following the Rio Agreement in 1967, the birth of the Special Drawing Right (SDR) was widely heralded as the first step towards a world international money. The SDR's intended purpose, though, was more modest: to help salvage the prevailing international monetary system which had evolved since Bretton Woods. This volume examines the relatively recent and important history of SDRs - what they are, where they came from, and why they are significant. It considers the changing roles and influences of the US and the IMF as post-Bretton Woods monetary arrangements established themselves. Despite their retreat from early acclaim, work continued, particularly at the Fund, on enhancing the potential of SDRs to contribute to international monetary stability and SDRs have recently re-emerged as a potential source of support and stability for the international monetary system underpinning the world economy. The SDR, and the debate surrounding it, is an excellent prism through which to examine other important themes in contemporary international political economy, including international liquidity provision and international monetary reform. Ultimately, the policies of the US, the Fund, and the changing nature of the relationship between them emerge as fundamental themes for an understanding of prospects for SDRs under post-Bretton Woods international monetary arrangements. Today, the promise and disappointment that has characterized the short history of SDRs is more important than ever as the world again examines these arrangements in the wake of the international financial crisis.

IMF Staff papers

The approach requiring the smallest element of international control would be to make the return on SDRs more attractive by comparison with that available on foreign exchange holdings, that is, to raise the SDR interest rate.

Author: International Monetary Fund. Research Dept.

Publisher: International Monetary Fund

ISBN: 9781451947335

Category: Business & Economics

Page: 255

View: 765

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This chapter focuses on the special drawing rights (SDR) scheme and the working of the gold exchange standard. This paper discusses the main influences involved in the relationship between SDRs and other reserve assets in a context of future reserve growth and suggests certain general conditions that may be necessary for SDRs to become the predominant source of reserve growth. The central question considered in this paper can be approached by asking in what ways the availability of SDRs as a supplement to other reserve growth should be expected to influence the basic forces operating under the gold exchange standard. The approach requiring the smallest element of international control would be to make the return on SDRs more attractive by comparison with that available on foreign exchange holdings, that is, to raise the SDR interest rate. A substantial increase in this rate would involve several separate considerations, which can be given only summary consideration here.

SDRs Currencies and Gold

This paper presents the fourth survey of certain changes in international and national monetary law and practice in relation to special drawing rights (SDRs), currencies, and gold.

Author: Joseph Gold

Publisher:

ISBN: 1451980515

Category: Change - Droit

Page: 122

View: 371

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