IMF Reduces Weighting of Dollar, Yen in SDR Basket
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The International Monetary Fund cut the weighting of the dollar and the yen and increased that of the euro in its Special Drawing Rights valuation basket based on the currencies’ share of global trade.
The value of the SDR, which the IMF created in 1969 to supplement its member countries official reserves, will continue to be derived from a basket of currencies comprised of the dollar, euro, yen and pound, the fund said in an e-mailed statement. UBS AG, the world’s second-largest foreign-exchange trader, said in June the IMF may include the Australian and Canadian dollars in the SDR basket this year. Commodity currency “bulls” will be disappointed at their exclusion, UBS said today in a note to clients.