IMF Executive Board Approves Modifications to the Method of Collecting Exchange Rates for the Calculation of the Value of the SDR
Since the procedures for capturing the market exchange rates used in the daily valuation of the SDR were last modified in 2000, more robust technologies and methodologies have been developed to capture exchange rates. The newly approved methods for collecting exchange rates will reflect these improvements and will be effective November 1, 2016.
The value of the SDR in terms of the U.S. dollar is determined daily by summing the values in U.S. dollars, based on market exchange rates, of a basket of major currencies: The Chinese renminbi, euro, Japanese yen, pound sterling and the U.S. dollar (see SDR Valuation). The exchange rates used for the daily valuation of the SDR are normally provided to the IMF by the Bank of England, with the Federal Reserve Bank of New York and the European Central Bank serving as the backup providers. These three institutions will continue to act as the providers of the exchange rates to the Fund in the future.
 The Executive Board takes decision under its lapse-of-time procedure when the Board agrees that a proposal can be taken without convening formal discussions.