Monthly Updates: IMF Begins Regular Release of Information on Financial Resources and Liquidity Position

• Pages: 353-355

Page 353

The IMF Executive Board has decided to publish regularly information on the IMF's financial resources and liquidity position, in addition to data already available in the institution's Annual Report and other publications.

The Executive Board's decision reflects increased public interest in the IMF's financial position and responds to the desire of shareholders for enhanced operational transparency. The data on resources, liabilities, and liquidity will be updated monthly on the IMF's website (www.imf.org) and published regularly in the IMF Survey.

Data cover total usable and nonusable resources, net uncommitted usable resources, balances available under borrowing arrangements, liquid liabilities, and the IMF liquidity ratio.

The data for the latest period available, which ended October 31, together with an explanatory note, follow.

Explanatory Note

The accompanying table (see page 354) summarizes the IMF's financial resource and liquidity position expressed in SDRs, the IMF's unit of account. The following items are included:

1. Total Resources. The largest component of the IMF's resources is its holdings of members' currencies (currently SDR 145.8 billion). Under the Articles of Agreement, the IMF's gold is valued at SDR 35 an ounce, and thus, gold holdings amount to SDR 3.6 billion. (At the market price on October 30, 1998- $293.10 a fine ounce-the holdings would be valued at SDR 21.5 billion, about $30 billion.) The IMF's holdings of gold are not readily usable because a decision to sell gold requires a majority of 85 percent of the total voting power in the Executive Board. Holdings of SDRs currently amount to SDR 1.2 billion; "other assets" (SDR 0.3 billion) reflects Page 354 sundry assets (such as building and receivables) net of sundry payables. In addition to the IMF's own resources, SDR 4.9 billion is currently available under the activation of the General Arrangements to Borrow (GAB) agreed on July 20, 1998.

2. Nonusable Resources. Resources that are considered nonusable to finance the IMF's ongoing operations and transactions are (1) its holdings of gold; (2) the currencies of members that are using IMF resources and are therefore, by definition, in a weak balance of payments or reserve position; (3) the currencies of other members with relatively weak external positions; and (4) the other assets noted above. The use of IMF credit by a member increases the IMF's nonusable resources and reduces...