Page 204 - DMGT545_INTERNATIONAL_BUSINESS

Unit 10: International Financial Institutions-II

made by the fund. At present, about 70% of SDRs are distributed among 26 rich countries and the notes
remaining 30% among developing countries. Consequent upon increase in the shares of member-
countries of IMF in April 1998, the total holding of SDR has gone up to 214 billion SDRs or 293
billion American dollars.
10.3.3 sDrs and india

India was allocated SDRs in the name of Government of India since January 1970. These SDRs do
not enter into the accounts of the RBI. During 1979–81, India was given further allocations on the
basis of its quota with the Fund beginning with January 1979. India’s total allocation was of SDR
4,156.20 million as on March 31, 2007. The current details are shown in the chart 11.1.

chart 10.1: india’s financial Position in the fund as on 31 may, 2011
i. membership status: Joined: December 27, 1945; Article VIII

ii. General resources account: sDr million %Quota
Quota 5,821.50 100.00
Fund holdings of currency (Exchange Rate) 4,289.57 73.68
Reserve Tranche Position 1,532.18 26.32
Lending to the Fund
New Arrangements to Borrow 750.00

iii. sDr Department: sDr million %allocation
Net cumulative allocation 3,978.26 100.00
Holdings 2,882.68 72.46

iv. outstanding Purchases and loans: None

v. latest financial arrangements:
Date of Expiration Amount Approved Amount Drawn
Type Arrangement Date (SDR Million) (SDR Million)
Stand-By Oct 31, 1991 Jun 30, 1993 1,656.00 1,656.00
Stand-By Jan 18, 1991 Apr 17, 1991 551.93 551.93
EFF Nov 09, 1981 May 01, 1984 5,000.00 3,900.00
Source: www.imf.org

Did u know? At the end of January 1987, India’s SDR holdings were ` 198 million.

10.3.4 evaluation of the functioning of imf

IMF has been functioning for a long-time. During this period it has achieved its objectives to a
large extent and at the same time its programmes have also been subjected to criticism.

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