international monetary fund

ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) approved an extension of the current Special Drawing Right (SDR) valuation basket by ten months from September 30, 2021 to July 31, 2022.
The proposal for the extension was put forward by IMF staff to the Executive Board in a paper published on March 15, 2021, said a press statement issued here on Tuesday.
The statement said that normally the IMF reviews the composition and valuation of the SDR basket every five years. The extension of the current basket effectively resets the five-yearly cycle of SDR valuation reviews, with the next review expected to be completed by mid-2022, and the new SDR valuation basket becoming effective on August 1, 2022. Thereafter, five-yearly revisions of the SDR basket would be taking effect on August 1.
The ten-month extension contributes to the Fund’s ongoing efforts to prioritise work during the Covid-19 crisis and allows for a more suitable effectiveness date of a new basket, which does not coincide with some major markets being closed. The approved extension of the current basket, as well as the effectiveness date of a new basket, is intended to facilitate the continued smooth functioning of SDR-related operations, said the statement. – TLTP