Oh no - can't add up the IMF figures - total toss.....what are SDR's anyway?

Increasing the sdrs by 333.5 to 367.5 = increase from 34b, which would be about 9x.

I think they can't write - I reckon the IMF wallies are increasing by 34 billion.

Who would trust these releases from IMF, that don't add up, or are plain wrong?

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The Executive Board of the International Monetary Fund (IMF) today approved a ten-fold expansion of the Fund’s New Arrangements to Borrow (NAB) and the transformation of the Fund’s premier standing credit arrangement into a more flexible and effective tool of crisis management. The NAB will be increased by SDR 333.5 billion (about US$500 billion) to SDR 367.5 billion (about US$550 billion), representing a major increase in the resources available for the Fund’s lending to its members.

AND

The GAB and NAB are credit arrangements between the IMF and a group of member countries and institutions to provide supplementary resources of up to SDR 34 billion (about US$523 billion) to the IMF to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system.

er.....sdr 333.5 billion = US$500billion 1 sdr = 1.5 US$

and sdr 34 billion = US$523 billion...........1 sdr = 15.3 US$

IMF increases special drawing rights

http://www.imf.org/external/np/sec/pr/2010/pr10145.htm

http://www.imf.org/external/about/sdr.htm

http://www.marketskeptics.com/2009/04/explaining-imfs-special-drawing-rights.html

My reaction: Special Drawing Rights, while complicated to understand, are a form of global quantitative easing.

1) G20 leaders have activated the IMF's power to create money and agreed to a 250 billion SDR allocation.

2) Special Drawing Rights (SDRs) is a potential claim on the freely usable currencies of IMF members.

3) In 1973, the SDR was redefined as a basket of currencies, today consisting of the euro (34 percent), Japanese yen (11 percent), pound sterling (11 percent), and U.S. dollar (44 percent).

4) The IMF may allocate SDRs to members in proportion to their IMF quotas, which is what the G20 just decided to do.

5) If a member's SDR holdings rise above its allocation, it earns interest on the excess; conversely, if it holds fewer SDRs than allocated, it pays interest on the shortfall.

6) The SDR interest rate is determined weekly and is based on a weighted average of representative interest rates on short-term debt in the money markets of the SDR basket currencies.

Conclusion: Essentially, IMF SDRs allocations are really credit lines to IMF members funded by printing the euro, yen, pound and the dollar. Since SDRs are backed 44 percent by the dollar, the 250 billion increase in SDRs allocations involves the creation of 110 billion dollars to fund these credit lines. Claims that “the Special Drawing Rights option to the U.S. Dollar as a reserve currency has all the texture and stickiness of a redistribution scam” aren’t entirely wrong.

Personally, I believe the US/UK are using SDRs as a way to create more money in a way that most people won't understand.

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