Information about Western Hemisphere Hemisferio Occidental
International Monetary Fund Annual Report 2016 Financial Statements
Chapter

SDR Department: Notes to the financial statements for the years ended April 30,2014, and 2013

Author(s):
International Monetary Fund
Published Date:
September 2016
Share
  • ShareShare
Information about Western Hemisphere Hemisferio Occidental
Show Summary Details

1. Nature of operations

The Special Drawing Right (SDR) is an international interest-bearing reserve asset created by the International Monetary Fund (IMF) following the First Amendment of the Articles of Agreement in 1969. All transactions and operations involving SDRs are conducted through the SDR Department. The SDR may be allocated by the IMF, as a supplement to existing reserve assets, to members participating in the SDR Department. Its value as a reserve asset derives from the commitments of participants to hold and accept SDRs and to honor various obligations connected with the SDR’s proper functioning as a reserve asset.

The resources of the SDR Department are held separately from the assets of all the other accounts owned, or administered by, the IMF. They may not be used to meet the liabilities, obligations, or losses of the IMF incurred in the operations of the General Department or other accounts, except that the SDR Department reimburses the General Department for expenses incurred in conducting the business of the SDR Department.

At April 30, 2014, and 2013, all members of the IMF were participants in the SDR Department. SDRs have been allocated by the IMF to members that are participants in the SDR Department at the time of the allocation in proportion to their quotas in the IMF. Since the creation of the SDR, three general allocations and one special allocation have been made for a total of SDR 204.1 billion as of April 30, 2014, and 2013. Upon termination of participation in, or liquidation of, the SDR Department, the IMF will provide to holders freely usable currencies or currencies of holders received from the participants in settlement of their obligations. The IMF is empowered to prescribe certain official entities as holders of SDRs; at April 30, 2014, and 2013, 15 institutions were prescribed as holders. Prescribed holders do not receive SDR allocations.

The SDR is also used by a number of international and regional organizations as a unit of account or as the basis for their units of account. Several international conventions also use the SDR as a unit of account.

1.1. Uses of SDRs

Participants and prescribed holders can use and receive SDRs in transactions and operations by agreement among themselves. Participants can also use SDRs in operations and transactions involving the General Resources Account, such as the payment of charges and repurchases. If necessary, the IMF may also designate participants to provide freely usable currency in exchange for SDRs; in doing so, the IMF ensures that a participant can use its SDRs to obtain an equivalent amount of currency if it has a need because of its balance of payments, its reserve position, or developments in its reserves.

1.2. Allocations and cancellations of SDRs

The IMF has the authority to provide unconditional liquidity through general allocations of SDRs to participants in the SDR Department in proportion to their quotas in the IMF. The IMF cannot allocate SDRs to itself or to other holders it prescribes. The Articles of Agreement also provide for cancellations of SDRs, although to date there have been no cancellations. In its decisions on general allocations of SDRs, the IMF, as prescribed under its Articles, has sought to meet the long-term global need to supplement existing reserve assets and avoid economic stagnation and deflation, as well as excess demand and inflation.

In accordance with the Fourth Amendment, the IMF has made a onetime special allocation of SDRs to all participants, and new members that joined the SDR Department subsequently, to enable all members to participate in the SDR system on an equitable basis.

SDRs allocated under the special allocation to participants with overdue obligations to the IMF have been deposited and are held in an escrow account with the SDR Department and will be released to the participants upon the latter’s settlement of all overdue obligations (see Note 4).

2. Basis of preparation and measurement

The financial statements of the SDR Department are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The financial statements have been prepared under the historical cost convention. Specific accounting principles and disclosure practices, as set out below, are in accordance with and comply with IFRS and have been applied consistently for all periods presented.

The SDR Department holds no cash or cash equivalents. Cash flows arising from operating activities are limited to the receipt of charges and assessments and payment of interest. A Statement of Cash Flows is not presented as it does not provide additional information beyond what is already contained in the Statement of Comprehensive Income. A summary of the receipts and uses of SDRs is shown in Note 5.

2.1. Unit of account

The financial statements are presented in SDRs, which is the IMF’s unit of account. The value of the SDR is determined daily by the IMF by summing specific amounts of the four basket currencies in U.S. dollar equivalents on the basis of market exchange rates. The IMF reviews the composition of the SDR valuation basket at a minimum of five-year intervals. The last review was completed in November 2010. The currencies in the basket at April 30, 2014, and 2013, and their specific amounts, relative to one SDR, were as follows:

CurrencyAmount
Euro0,423
Japanese yen12.1
Pound sterling0,111
U.S. dollar0,660

At April 30, 2014, one SDR was equal to US$1.54969 (US$1.50900 at April 30, 2013).

2.2. Use of estimates and judgment

The preparation of financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are described in Note 3.

3. Summary of significant accounting policies

3.1. New International Financial Reporting Standards

The following new standards and amendments to the existing standards issued by the IASB are effective for annual periods beginning on or after January 1, 2013 (which is financial year 2014 for the SDR Department). These standards have no impact on the SDR Department’s financial statements:

IFRS 11, “Joint Arrangements” was issued in May 2011.

IFRS 12, “Disclosure of Interests in Other Entities” was issued in May 2011.

IFRS 13, “Fair Value Measurement” was issued in May 2011.

IAS 27 (as revised in 2011), “Separate Financial Statements” was issued in May 2011.

IAS 28 (as revised in 2011), “Investments in Associates and Joint Ventures” was issued in May 2011.

Amended IFRS 7, “Financial Instruments: Disclosures” was issued in December 2011.

Amendments to IFRS 10, “Consolidated Financial Statements,” IFRS 11, “Joint Arrangements,” and IFRS 12, “Disclosure of Interests in Other Entities,” were issued in October 2012.

The following new standard has been issued by the IASB and is applicable for the SDR Department but has not yet been adopted.

IFRS 9, “Financial Instruments” was issued in November 2009 as the first step in replacing IAS 39, “Financial Instruments: Recognition and Measurement.”IFRS 9 was originally issued in November 2009, reissued in October 2010, and then amended in November 2013. The standard requires all financial assets to be classified at fair value through profit or loss or amortized cost on the basis of the entity’s business model for managing financial assets and the contractual cash flow characteristics of the financial asset. The current version of IFRS 9 does not include a mandatory effective date but is available for adoption. An effective date will be added when all phases of the project are complete and a final version of IFRS 9 is issued. Upon the IASB’s completion of IFRS 9, the impact of its adoption will be assessed.

3.2. Interest and charges

Interest is paid on holdings of SDRs. The SDR Department is required to pay interest to each SDR holder and levy charges on each participant’s net cumulative SDR allocation. If sufficient SDRs are not received because charges are overdue, additional SDRs are temporarily created. Charges are levied on each participant’s net cumulative allocations plus any negative SDR holdings of the participants or any unpaid charges. Interest and charges are levied at the same rate and are settled by crediting and debiting the appropriate individual holdings accounts.

The rate of interest on the SDR is determined by reference to the combined market interest rate, which is a weighted average of yields or rates on short-term instruments in the money markets of the Euro area (three-month Eurepo rate), Japan (three-month Treasury Discount Bills), the United Kingdom (three-month Treasury Bills), and the United States (three-month Treasury Bills). The combined market interest rate is calculated each Friday, using the yields or rates of that day. The SDR interest rate, which is set equal to the combined market interest rate, enters into effect on the following Monday and applies through the subsequent Sunday. The average SDR interest rate was 0.09 percent for the financial years ended April 30, 2014, and 2013.

3.3. Overdue obligations

An allowance for losses resulting from overdue SDR obligations would be created if the IMF expected a loss to be incurred; there were no overdue obligations and no losses have been incurred during the financial years ended April 30, 2014, and 2013.

4. Allocations and holdings

At April 30, 2014, and 2013, cumulative allocations to participants totaled SDR 204.1 billion. Participants with holdings below their allocations have used part of their allocations, resulting in a net obligation to the SDR Department presented as an asset on the statements of financial position. Participants with holdings in excess of their allocations have established a net claim on the SDR Department, which is represented on the statements of financial position as a liability.

Participants’ net SDR positions at April 30, 2014, and 2013, were as follows:

20142013
Below allocationsAbove allocationsTotalBelow allocationsAbove allocationsTotal
(In millions of SDRs)
Cumulative allocations128,09975,992204,091129,43574,656204,091
Holdings of SDRs111,47779,007190,484113,23877,424190,662
Net SDR positions16,622(3,015)13,60716,197(2,768)13,429

A summary of SDR holdings as of April 30, 2014, and 2013, is provided below:

20142013
(In millions of SDRs)
Participants190,484190,662
General Resources Account12,46212,494
Prescribed holders1,145935
Total holdings204,091204,091

In accordance with the provision of the Fourth Amendment of the IMF’s Articles of Agreement, SDRs are held in escrow on behalf of participants with overdue obligations to the General Department and the Poverty Reduction and Growth Trust (PRG Trust). At April 30, 2014, and 2013, SDR 86.7 million was held in escrow for Somalia (SDR 4.2 million), Sudan (SDR 16.1 million), and Zimbabwe (SDR 66.4 million). These amounts would be released to the participants upon the settlement of overdue obligations to the IMF, and their allocations and holdings will be adjusted accordingly.

5. Receipts and uses of SDRs

The receipts and uses of SDRs for the financial years ended April 30, 2014, and 2013, were as follows (see also Schedule 1):

20142013
(In millions of SDRs)
Receipts of SDRs
SDR allocations105
Transfers among participants and prescribed holders6,2086,079
Transfers from participants and prescribed holders to the General Resources Account4,3133,584
Transfers from the General Resources Account to participants4,3561,623
Net interest received:
Participants23
General Resources Account1111
Prescribed holders11
Total receipts of SDRs14,89111,406
Uses of SDRs
Transfers among participants and prescribed holders6,2086,079
Transfers from participants and prescribed holders to the General Resources Account4,3133,584
Transfers from the General Resources Account to participants4,3561,623
Net charges paid by participants1415
Total uses of SDRs14,89111,301

Transfers from the General Resources Account to participants included the distributions of SDR 1.75 billion and SDR 0.7 billion, attributable to windfall gold sales profits, for the years ended April 30, 2014, and 2013, respectively.

6. Related party transactions and administrative expenses

The General Resources Account is a holder of SDRs and conducts operations and transactions with the SDR Department participants. The General Resources Account’s holdings of SDRs amounted to SDR 12.5 billion at April 30, 2014, and 2013; see Schedule 1.

The expenses of conducting the business of the SDR Department are paid by the IMF from the General Resources Account, which is reimbursed by the SDR Department (SDR 1.4 million and SDR1.1 million for the financial years ended April 30, 2014, and 2013, respectively). For this purpose, the SDR Department levies an assessment on all participants in proportion to their cumulative allocations at the end of each financial year.

SDR Department: Schedule 1 – Statements of changes in SDR holdings for the years ended April 30, 2014, and 2013(In millions of SDRs)
ParticipantsGeneral Resources AccountPrescribed holdersTotal
20142013
Total holdings, beginning of year190,66212,494935204,091203,985
Receipts of SDRs
SDR allocations105
Transfers among participants and prescribed holders
Transactions by agreement3,3552133,5683,995
Operations
Settlement of financial obligations3737132
IMF-related operations
PRG Trust loans476476223
PRG Trust borrowings, contributions, and payments921,5901,6821,189
PRG Trust repayments and interest314314287
PRG-HIPC Trust contributions and interest payments11
Emergency Assistance, SFF subsidy, and HIPC payments11
Refunds, distributions, and other170
Administered Accounts contributions, refunds, and deposits212913182
Net interest on SDRs2134
Transfers from participants and prescribed holders to the General Resources Account
Repurchases1,5931,593929
GRA charges2,6702,6702,572
Quota payments1129
Interest on SDRs111111
Assessment on SDR allocations111
Reimbursement of expenses484853
Transfers from the General Resources Account to participants
Purchases467467198
In exchange for currencies of other members
Acquisitions to pay GRA charges2,0332,033585
Remuneration393955
Interest on borrowings404040
Refunds, distributions, and other1,7771,777745
Total receipts8,2834,3242,28414,89111,406
Uses of SDRs
Transfers among participants and prescribed holders
Transactions by agreement2,1381,4303,5683,995
Operations
Settlement of financial obligations3737132
IMF-related operations
PRG Trust loans476476223
PRG Trust borrowings, contributions, and payments1,5641181,6821,189
PRG Trust repayments and interest314314287
PRG-HIPC Trust contributions and interest payments111
Emergency Assistance, SFF subsidy, and HIPC payments111
Refunds, distributions, and other170
Administered Accounts contributions, refunds, and deposits129213182
Transfers from participants and prescribed holders to the General Resources Account
Repurchases1,5931,593929
GRA charges2,6702,6702,572
Quota payments1129
Assessment on SDR allocations111
Reimbursement of expenses484853
Transfers from the General Resources Account to participants Purchases467467198
In exchange for currencies of other members Acquisitions to pay GRA charges2,0332,033585
Remuneration393955
Interest on borrowings404040
Refunds, distributions, and other1,7771,777745
Charges paid in the SDR Department
Net charges paid141415
Total uses8,4614,3562,07414,89111,301
Total holdings, end of year190,48412,4621,145204,091204,091
Ending balances include rounding differences.

Less than SDR 500,000.

Ending balances include rounding differences.

Less than SDR 500,000.

SDR Department: Schedule 2 – Allocations and holdings of participants at April 30, 2014(In millions of SDRs)
ParticipantNet cumulative allocationsHoldings
TotalPercent of cumulative allocationsAbove (Below) allocations
Afghanistan, Islamic Republic of155.3112.172.2(43.2)
Albania46.594.3202.947.8
Algeria1,198.21,074.689.7(123.6)
Angola273.0236.286.5(36.8)
Antigua and Barbuda12.50.32.7(12.2)
Argentina2,020.02,053.1101.633.0
Armenia88.010.411.8(77.6)
Australia3,083.22,950.495.7(132.8)
Austria1,736.31,658.695,5(77.7)
Azerbaijan153.6154.9100.81.3
Bahamas, The124.438.030.5(86.4)
Bahrain124.4129.6104.35.3
Bangladesh510.4615.7120.6105.2
Barbados64.456.587.8(7.9)
Belarus368.6373.5101.34.8
Belgium4,323.34,137.695.7(185.8)
Belize17.920.0111.92.1
Benin59.249.784.0(9.5)
Bhutan6.06.4107.30.4
Bolivia164.1166.7101.62.5
Bosnia and Herzegovina160.92.41.5(158.5)
Botswana57.485.7149.228.3
Brazil2,887.12,595.289.9(291.9)
Brunei Darussalam203.5216.5106.413.0
Bulgaria610.9611.6100.10.7
Burkina Faso57.648.183.6(9.4)
Burundi73.882.4111.58.5
Cambodia83.968.481.5(15.6)
Cameroon177.315.28.6(162.1)
Canada5,988.15,633.694.1(354.4)
Cabo Verde9.21.617.2(7.6)
Central African Republic53.42.44.6(50.9)
Chad53.60.10.1(53.6)
Chile816.9744.891.2(72.1)
China6,989.77,304.1104.5314.4
Colombia738.3732.799.2(5–7)
Comoros8.514.5170.16.0
Congo, Democratic Republic of the510.9352.168.9(158.7)
Congo, Republic of79.770.288.1(9.5)
Costa Rica156.5132.584.7(24.0)
Cote d’lvoire310.9272.887.7(38.1)
Croatia347.3305.087.8(42.4)
Cyprus132.8112.985.0(19.9)
Czech Republic780.2751.396.3(28.9)
Denmark1,531.51,422.592.9(109.0)
Djibouti15.27.952.1(7.3)
Dominica7.81.822.8(6.1)
Dominican Republic208.83.61.7(205.2)
Ecuador288.418.06.3(270.3)
Egypt898.5821.791.5(76.8)
El Salvador163.8165.6101.11.8
Equatorial Guinea31.321.267.6(10.1)
Eritrea15.23.724.5(11.4)
Estonia62.062.0100.10.1
Ethiopia127.997.276.0(30.7)
Republic of Fiji67.151.176.1(16.0)
Finland1,189.51,125.894.6(63.7)
France10,134.29,287.091.6(847.2)
Gabon146.7132.890.5(13.9)
Gambia, The29.822.675.8(7.2)
Georgia144.0144.5100.40.6
Germany12,059.211,669.296.8(389.9)
Ghana353.9232.865.8(121.1)
Greece782.4553.870.8(228.5)
Grenada11.29.484.1(1.8)
Guatemala200.9175.687.4(25.3)
Guinea102.5115.2112.412.7
Guinea-Bissau13.612.491.0(1.2)
Guyana87.10.60.7(86.4)
Haiti78.568.887.7(9.7)
Honduras123.890.272.8(33.6)
Hungary991.113.51.4(977.6)
Iceland112.210.59.4(101.7)
India3,978.32,887.872.6(1,090.4)
Indonesia1,980.41,761.288.9(219.2)
Iran, Islamic Republic of1,426.11,551.9108.8125.8
Iraq1,134.5849.474.9(285.1)
Ireland775.4649.783.8(125.7)
Israel883.4862.497.6(21.0)
Italy6,576.16,129.293.2(447.0)
Jamaica261.6190.672.8(71.1)
Japan12,285.013,045.6106.2760.6
Jordan162.1135.583.6(26.5)
Kazakhstan343.7348.3101.44.7
Kenya259.68.93.4(250.7)
Kiribati5.35.4101.30.1
Korea2,404.42,266.694.3(137.9)
Kosovo55.453.195.9(2.3)
Kuwait1,315.61,446.6110.0131.0
Kyrgyz Republic84.7125.5148.140.7
Lao People’s Democratic Republic50.751.1100.80.4
Latvia120.8120.8100.01
Lebanon193.3192.399.5(1.0)
Lesotho32.946.8142.413.9
Liberia124.0173.2139.749.2
Libya1,072.71,622.7151.3550.0
Lithuania137.2137.3100.00.1
Luxembourg246.6244.399.1(2.3)
Macedonia, former Yugoslav Republic of65.64.06.1(61.6)
Madagascar117.177.366.0(39.8)
Malawi66.44.36.5(62.1)
Malaysia1,346.11,286.395.6(59.9)
Maldives7.76.888.4(0.9)
Mali89.473.482.1(16.0)
Malta95.489.593.8(5.9)
Marshall Islands3.33.4101.11
Mauritania61.70.81.3(60.9)
Mauritius96.8100.0103.33.2
Mexico2,851.22,689.694.3(161.6)
Micronesia, Federated States of4.86.2129.61.4
Moldova117.72.31.9(115.5)
Mongolia48.843.188.4(5.7)
Montenegro25.826.3102.00.5
Morocco561.4565.3100.73.9
Mozambique108.8103.394.9(5.6)
Myanmar245.82.10.8(243.7)
Namibia130.45.03.8(125.4)
Nepal68.141.260.4(26.9)
Netherlands4,836.64,559.694.3(277.1)
New Zealand853.8812.195.1(41.6)
Nicaragua124.589.571.9(35.0)
Niger62.954.386.2(8.7)
Nigeria1,675.41,675.1100.0(0.2)
Norway1,563.11,485.995.1(77.2)
Oman178.8175.298.0(3.6)
Pakistan988.6544.255.0(444.4)
Palau3.03.0101.11
Panama197.0170.886.7(26.2)
Papua New Guinea125.59.37.4(116.2)
Paraguay95.2110.6116.215.5
Peru609.9531.187.1(78.8)
Philippines838.0846.1101.08.1
Poland1,304.6986.975.6(317.7)
Portugal806.5792.698.3(13.9)
Qatar251.4271.2107.919.8
Romania984.831.43.2(953.4)
Russian Federation5,671.85,689.6100.317.8
Rwanda76.880.7105.13.9
St. Kitts and Nevis8.56.677.6(1.9)
St. Lucia14.615.4105.80.9
St. Vincent and the Grenadines7.90.89.9(7.1)
Samoa11.112.6114.01.6
San Marino15.515.599.5(0.1)
Sao Tome and Principe7.10.11.0(7.0)
Saudi Arabia6,682.56,264.593.7(418.0)
Senegal154.8130.284.1(24.6)
Serbia445.0133.029.9(312.1)
Seychelles8.36.173.1(2.2)
Sierra Leone99.5106.7107.37.2
Singapore744.2873.5117.4129.3
Slovak Republic340.5338.999.5(1.6)
Slovenia215.9211.297.8(4.6)
Solomon Islands9.99.494.9(0.5)
Somalia46.518.339.4(28.1)
South Africa1,785.41,788.2100.22.8
South Sudan105.477.173.2(28.3)
Spain2,827.62,702.095.6(125.6)
Sri Lanka395.59.52.4(386.0)
Sudan178.0125.370.4(52.7)
Suriname88.181.392.3(6.8)
Swaziland48.348.7100.90.4
Sweden2,249.02,082.892.6(166.2)
Switzerland3,288.03,124.895.0(163.3)
Syrian Arab Republic279.2282.2101.13.0
Tajikistan82.169.785.0(12.3)
Tanzania190.5151.379.4(39.2)
Thailand970.3974.3100.44.0
Timor-Leste7.77.191.9(0.6)
Togo70.359.384.3(11.1)
Tonga6.67.1107.70.5
Trinidad and Tobago321.1275.785.9(45.4)
Tunisia272.8220.380.8(52.4)
Turkey1,071.3966.290.2(105.2)
Turkmenistan69.869.8100.0
Tuvalu1.71.374.7(0.4)
Uganda173.1139.280.4(33.9)
Ukraine1,309.44.00.3(1,305.5)
United Arab Emirates568.4542.395.4(26.1)
United Kingdom10,134.29,645.195.2(489.1)
United States35,315.735,838.7101.5523.0
Uruguay293.3245.783.8(47.6)
Uzbekistan262.8266.1101.33.3
Vanuatu16.31.59.3(14.8)
Venezuela, Republica Bolivariana de2,543.32,258.688.8(284.7)
Vietnam314.8268.085.1(46.8)
Yemen, Republic of232.3144.762.3(87.5)
Zambia469.1380.181.0(89.1)
Zimbabwe272.292.834.1(179.3)
Above allocation75,992.079,007.1104.03,015.1
Below allocation128,098.7111,476.887.0(16,621.9)
Total participants204,090.7190,483.9
Participants’ holdings held in escrow86.786.7
General Resources Account12,461.6
Prescribed holders1,145.2
204,177.4204,177.4
Totals may not add up due to rounding.

Less than SDR 50,000.

Totals may not add up due to rounding.

Less than SDR 50,000.

    Other Resources Citing This Publication