This paper analyzes the impact of higher SDR interest rates on IMF members with negative net SDR Department positions. To do so, it constructs SDR forward ...
Sep 15, 2023 · The Financial Cost of Using Special Drawing Rights: Implications of Higher Interest Rates. Author: Mr. Neil Shenai, Mr. Nicolas End, Jakree ...
The Financial Cost of Using Special Drawing Rights: Implications of Higher Interest Rates
Book by Ayah Said, Mr. Nicolas End, and Neil Shenai
Since the August 2021 SDR allocation, the SDR interest rate has risen about 390 basis points through end-June 2023. This paper analyzes the impact of higher SDR interest rates on IMF members with negative net SDR Department positions. ... Google Books
Originally published: September 15, 2023
Authors: Neil Shenai, Ayah Said, Jakree Koosakul, and more
Sep 15, 2023 · Next Issue · Cover IMF Working Papers. The Financial Cost of Using Special Drawing Rights: Implications of Higher Interest Rates. Author: Mr.
Sep 15, 2023 · Our analysis shows that the expected costs of charges (interest) in net present value terms are estimated to have more than tripled, while the ...
People also ask
What are the benefits of Special Drawing Rights?
The main objective of the Special Drawing Rights is to provide additional liquidity and discard several restrictions the international community faces in flourishing world trade. The benefits of the Special Drawing Rights are reduced dependence on the U.S., issues of balance of payment, and a stable system.
What is the SDR interest rate?
The SDR interest rate is determined weekly on each Friday and is based on a weighted average of representative interest rates on 3-month debt in the money markets of the five SDR basket currencies (i.e., the U.S. dollar, Japanese yen, euro, and pound sterling, and the Chinese renminbi).
What is the role of the IMF in the balance of payments and SDR?
The IMF issues an international reserve asset known as Special Drawing Rights, or SDRs, that can supplement the official reserves of member countries. Total global allocations are currently about SDR 204.2 billion, about $293 billion. IMF members can voluntarily exchange SDRs for currencies among themselves.
What is the difference between Special Drawing Rights and reserve tranche?
Special drawing rights are monetary reserve currencies created by the International Monetary Fund. A credit tranche refers to the different levels of funds the IMF releases in its lending activities to member countries. What Is the International Monetary Fund (IMF)?
Neil Shenai & Mr. Nicolas End & Jakree Koosakul & Ayah Said, 2023. "The Financial Cost of Using Special Drawing Rights: Implications of Higher Interest Rates," ...
... Financial Cost of Using Special Drawing Rights: Implications of Higher Interest Rates Prepared by Neil Shenai, Nicolas End, Jakree Koosakul, Ayah Said ...
Feb 9, 2023 · Our analysis shows that the expected costs of charges (interest) in net present value terms are estimated to have more than tripled, while the ...
The Financial Cost of Using Special Drawing Rights: Implications of Higher Interest Rates. Mr. Neil Shenai, Mr. Nicolas End, Jakree ...
The Financial Cost of Using Special Drawing Rights Implications of Higher Interest Rates by Mr. Neil Shenai, Mr. Nicolas End, Jakree Koosakul, Ayah Said 34 ...
This paper documents the evolution of international financial integration since the global financial crisis using an updated dataset on external assets and ...