Why and on what basis USD has been given a more weight of 0.660 wrt SDR valuation in comparison of Euro and Pond Sterling? India and all other developing world countries need to think over it, if they want to protect themselves from the loot of these so called Developed World? ++++++++++++_______________________________+++++++++++++++++ Law of IMF (International monetary fund) O--VALUATION OF THE SDR, VALUATION OF CURRENCIES IN TERMS OF THE SDR, FREELY USABLE CURRENCY, PROCEDURES FOR EXCHANGE OF CURRENCY, AND OPERATIONAL BUDGET Valuation of the SDR O-1. The value of the SDR shall be the sum of the values of the following amounts of the following currencies: U.S. dollar 0.660 Euro 0.423 Japanese yen 12.1 Pound sterling 0.111 Adopted September 18, 1969; amended June 13, 1974, effective July 1, 1974; July 1, 1974; April 1, 1978; June 30, 1978, effective July 1, 1978; September 17, 1980, effective January 1, 1981; July 26, 1983; December 31, 1985, effective January 1, 1986; December 31, 1990, effective January 1, 1991; December 29, 1995, effective January 1, 1996; September 21, 1998; effective January 1, 1999; December 29, 2000, effective January 1, 2001; December 30, 2005, effective January 1, 2006; and December 30, 2010, effective January 1, 2011. Valuation of Currencies in Terms of the SDR O-2. (a) The value of the United States dollar in terms of the SDR shall be equal to the reciprocal of the sum of the equivalents in United States dollars of the amounts of the currencies specified in Rule O-1, calculated on the basis of exchange rates established in accordance with procedures decided from time to time by the Fund. (b) The value of a currency other than the United States dollar in terms of the SDR shall be determined on the basis of the value of the United States dollar in terms of the SDR in accordance with (a) above and an exchange rate for that other currency determined as follows: (i) for the currency of a member having an exchange market in which the Fund finds that a representative spot rate for the United States dollar can be readily ascertained, that representative rate; (ii) for the currency of a member having an exchange market in which the Fund finds that a representative spot rate for the United States dollar cannot be readily ascertained but in which a representative spot rate can be readily ascertained for a currency as described in (i), the rate calculated by reference to the representative spot rate for that currency and the rate ascertained pursuant to (i) above for the United States dollar in terms of that currency; (iii) for the currency of any other member, a rate determined by the Fund. (c) Procedures to establish exchange rates under (b) above shall be determined by the Fund in consultation with members. Adopted September 18, 1969; amended June 13, 1974, effective July 1, 1974; July 1, 1974; April 1, 1978; and July 26, 1983
Posted on: Sun, 13 Jul 2014 03:49:19 +0000
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