posted on January 3, 2011

[vern]

This comes from don't promote other sites Tidbits-----posted on January 3, 2011

January 2, 2011 10:30 pm · Posted in NEWS · Comments Off

SDR Basket Rate

The amounts of each of the four currencies to be included in the new SDR valuation basket will be calculated on December 30, 2010 in accordance with the new weights, and will go into effect on January 1, 2011.

The calculation will be made on the basis of the average exchange rates for these currencies over the three months ending on that date in such a manner as to ensure that the value of the SDR will be the same on December 30, 2010 under both the revised valuation and present valuation baskets.

SDR Interest Rate

The IMF also reviewed the method for determining the SDR interest rate and decided to continue to set the weekly interest rate 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. The interest rate on the three-month Treasury bills of the United States, United Kingdom, and Japan, and the three-month Eurepo rate will continue to serve as the representative interest rates for the U.S. dollar, pound sterling, Japanese yen, and euro, respectively.

A press release providing the final currency amounts in the new SDR valuation basket to take effect on January 1, 2011 will be issued by the IMF on December 30, 2010.

The first SDR exchange rate using the new basket will be posted on January 3, 2011.

The first SDR interest rate based on the new basket will be calculated and announced on January 7, 2011, and will be effective during the week of January 10–14, 2011.

Further information on the SDR can be found on the IMF’s website (http://www.imf.org/external/fin.htm).

For your enjoyment- Vern

[Bumper64]

Thanks for the post vern!

[JCOUTEE]

So is Iraq in the basket ?

[mariejose]

what does this mean in terms of rate changes?

[steveandmarlo]

Iraq has not been in the basket thus far. You can go to IMF website and be added to receive notifications for each time there is a change in the SDR basket. I did this a couple of weeks ago and have received 4 emails and Iraq has not been included on either of the updates even though that is the currency/country that I selected to follow.