International Monetary Fund (IMF)

• The formation of the IMF was initiated in 1944 at the Bretton Woods Conference. IMF came into operation on 27th December 1945.

Special Drawing Rights (SDRs) 

They are the IMF’s unit of account and not a currency.

The currency value of the SDR is determined by summing the values in U.S. dollars, based on market exchange rates, of a SDR basket of currencies

SDR basket of currencies includes the

• S. dollar,
• Euro,
• Japanese yen,
• pound sterling and
• Chinese renminbi (included in 2016).

The SDR currency value is calculated daily (except on IMF holidays or whenever the IMF is closed for business) and the valuation basket is reviewed and adjusted every five years.

Reports

Global Financial Stability Report

• It is released twice per year, in April and October.

World Economic Outlook

• It is a survey by the IMF that is usually published twice a year in April and October.

PYQs

Global Financial Stability Report’ is prepared by the (2016)

(a) European Central Bank
(b) International Monetary Fund
(c) International Bank for Reconstruction and Development
(d) Organization for Economic Cooperation and Development