Diem and SDR Calculation


Facebook company is preparing to enter the markets with a coin under the name “Diem” (formerly Libra). This money, which will be talked about a lot in the future, took the SDR as an example in creating its own expense. Therefore, we need to learn how SDR is calculated. If you do not have an academic pursuit, you do not need to read the following pages. (Honest Writer)

When I read that Diem took the SDR as an example, the first thing that came to my mind was to go to the IMF’s page and learn how the SDR is calculated.

Source:https://www. imf. org/external/np/fin/data/rms_sdrv. aspx

On the relevant page, the loads of the coins in the SDR were not written. ” Currency Amount ” column did not necessarily give scales of coins. I thought I’d find the loads of the coins in the SDR and look again.

Source:https://www. imf. org/external/np/exr/faq/sdrbsktfaq. htm#one

This page features new scales that emerged with the inclusion of Yuan in September 2016.

Well it’s damn possible” Currency Amount What is ”? This is valuable because without it you cannot calculate the column where SDR is calculated (“U. S dollar equivalent”)?

Let’s start by finding the SDR formula.

Source:https://www. imf. org/external/np/exr/faq/sdrbsktfaq. htm#one

Then I took the rates in mid-July-September from this page. Do not take the currency from elsewhere. Also, in all exchange rates, you must write the values ​​in dollars. On the IMF site, the opposite is happening for the Yuan for some reason. I did not get it

It’s time to calculate the cost in the denominator of the second part of the formula. .

For each currency pair, we find [ (Weight/ 2016 July-September Average value) * 30 September 2016 value ] and then add up. Only when all currency pairs are calculated in dollars We give “1” to BEX and TEX values ​​for dollar.

We find the “Sum of (W/BEX)*TEX” value in the following illustration.

Here, the IMF called the second part of the equation “$/SDR”. But this will be “SDR/$”. ????

When you do the calculations one by one, ” Currency Amount ” you will find the values.

When you multiply these costs with the current exchange rates (for Yuan and Yen, take the opposite of the exchange rate) “U. You will reach “S dollar equivalent” prices.

The sum of these costs will give us how much $ 1 SDR makes.

One Euro on 15 July :1. If it is $ 18, the curreny amount of the euro is 0.38

1. $18 *0. 38= 0.45 $ (U.S dollar equivalent)

Let’s do it for the yuan.

(1 / 6.45) =0.15 $, yuan’s curreny amount is 1.01

$0.15 * 1.01 =0. $15 (U.S dollar equivalent)

You can see all values ​​here.

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