IMF announces new valuation for SDR, modifies composition of basket

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The IMF has announced that on January 1, 2001, changes in the method of valuation of the Special Drawing Right (SDR) will come into effect (as announced in Press Release 00/55, October 12, available on the IMF’s website: www.imf.org). The composition of the SDR basket has been modified to reflect the introduction of the euro. The initial weights assigned to each currency in the basket have been adjusted to take account of changes in the share of each currency in world exports of goods and services and international reserves.

On December 29, 2000, the IMF will determine a fixed amount of each currency in the SDR basket based on the initial weights and exchange rates over the preceding three months. These amounts will produce a...