New currency weights for SDR valuation basket set by IMF

The new currency weights for the Special Drawing Rights (SDR) valuation basket was determined by the IMF Executive Board

The new currency weights for the SDR valuation basket were determined by the IMF Executive Board on May 14, 2022, after conducting its SDR valuation review, which usually happens every five-year. The SDR is an “international reserve asset created by the IMF to supplement the official reserves of its member countries – IMF”. According to the IMF press release No. 22/153, the following resolutions are made:

  • The following five major currencies still make up the SDR currency: the U.S. dollar, the Chinese Renminbi, the British Pound, the Euro and the Japanese Yen.
  • Effective August 1, 2022, the updated basket weighting is as follows:
Currency From August 1st, 2022 Before August 1st, 2022 Per cent change
U.S. dollar 43.38 41.73 +3.95
Euro 29.31 30.93 -5.23
Chinese renminbi 12.28 10.92 +12.45
Japanese yen 7.59 8.33 -8.88
Pound sterling 7.44 8.09 -8.03
100.00 100.00
Source: IMF website/ABiQ own calculation (per cent change)

 

It is mentioned in the press release that this recalculation is based on trade (export) and financial market data for the period 2017-2021. The table shows that, despite maintaining the same ranking before and after August 1, 2022, the weight of the Chinese renminbi has increased by double digits compared to its previous weight. This suggests a relatively good performance of the Chinese economy during the same period. The weight of the US dollar has also increased. The euro, Japanese yen, and British pound weights have decreased “significantly”.

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