100
INTRODUCTION: Exchange Stabilization Fund
To stabilize the exchange value of the dollar, the Table ESF-1 presents the assets, liabilities, and
Exchange Stabilization Fund (ESF) was established pursuant capital of the fund. The figures are in U.S. dollars or their
to chapter 6, section 10 of the Gold Reserve Act of January equivalents based on current exchange rates computed
30, 1934 (codified at 31 United States Code 5302), which according to the accrual method of accounting. The capital
authorized establishment of a Treasury fund to be operated account represents the original capital appropriated to the fund
under the exclusive control of the Secretary, with approval by Congress of $2 billion, minus a subsequent transfer of $1.8
of the President. billion to pay for the initial U.S. quota subscription to the
Subsequent amendment of the Gold Reserve Act International Monetary Fund. Gains and losses are reflected in
modified the original purpose somewhat to reflect the cumulative net income (+) or loss (-) account.
termination of the fixed exchange rate system.
Resources of the fund include dollar balances, partially
Table ESF-2 shows the results of operations by
quarter. Figures are in U.S. dollars or their equivalents
invested in U.S. Government securities, special drawing
computed according to the accrual method. “Profit (+) or
rights (SDRs), and balances of foreign currencies. Principal
loss (-) on foreign exchange” includes realized profits or
sources of income (+) or loss (-) for the fund are profits (+)
losses. “Adjustment for change in valuation of SDR holdings
or losses (-) on SDRs and foreign exchange, as well as
and allocations” reflects net gain or loss on revaluation of
interest earned on assets.
SDR holdings and allocations for the quarter.
TABLE ESF-1.—Balances as of Sept. 30, 2008, and Dec. 31, 2008
[In thousands of dollars. Source: Office of the Assistant Secretary of the Treasury for Management]
Oct. 1, 2008,
through
Assets, liabilities, and capital Sept. 30, 2008 Dec. 31, 2008 Dec. 31, 2008
Assets
U.S. dollars:
Held with Treasury:
Fund Balance ................................................................... 33,150 -33,150 -
U.S. Government securities ............................................. 16,846,843 814,071 17,660,914
Special drawing rights 1 ........................................................... 9,417,541 -77,147 9,340,394
Foreign exchange and securities:
European euro ..................................................................... 14,128,863 -45,375 14,083,488
Japanese yen ....................................................................... 9,019,957 1,519,959 10,539,916
Accounts receivable ................................................................. 496,152 -321,751 174,401
Total assets .......................................................................... 49,942,506 1,856,607 51,799,113
Liabilities and capital
Current liabilities:
Accounts payable................................................................. 37,434 -9,652 27,782
Total current liabilities ...................................................... 37,434 -9,652 27,782
Other liabilities:
SDR certificates ................................................................... 2,200,000 - 2,200,000
SDR allocations ................................................................... 7,629,646 -83,047 7,546,599
Unearned revenue .............................................................. 292,795 141,714 434,509
Total other liabilities ......................................................... 10,122,441 58,667 10,181,108
Capital:
Capital account .................................................................... 200,000 - 200,000
Net income (+) or loss (-) (see table ESF-2) ....................... 39,582,631 1,807,592 41,390,223
Total capital ...................................................................... 39,782,631 1,807,592 41,590,223
Total liabilities and capital ............................................ 49,942,506 1,856,607 51,799,113
See footnote on the following page.
June 2009
EXCHANGE STABILIZATION FUND 101
TABLE ESF-2.—Income and Expense
[In thousands of dollars. Source: Office of the Assistant Secretary of the Treasury for Management]
Current quarter Fiscal year to date
Oct. 1, 2008, Oct. 1, 2008,
through through
Dec. 31, 2008 Dec. 31, 2008
Income and expense
Profit (+) or loss (-) on:
Foreign exchange ......................................................................... 1,350,861 1,350,861
Adjustment for change in valuation
of SDR holdings and allocations 1 ............................................... -18,969 -18,969
Interest (+) or net charges (-) on:
SDRs ............................................................................................. 6,433 6,433
U.S. Government securities .......................................................... 7,033 7,033
Foreign exchange ......................................................................... 128,209 128,209
Insurance premiums ..................................................................... 334,025 334,025
Commissions................................................................................. - -
Income from operations ................................................................ 1,807,592 1,807,592
Net income (+) or loss (-) .............................................................. 1,807,592 1,807,592
1
Beginning July 1974, the International Monetary Fund adopted a technique for valuing the Note.— Annual balance sheets for fiscal years 1934 through 1940 appeared in the 1940
SDRs based on a weighted average of exchange rates for the currencies of selected “Annual Report of the Secretary of the Treasury” and those for succeeding years
member countries. The U.S. SDR holdings and allocations are valued on this basis appeared in subsequent reports through 1980. Quarterly balance sheets beginning with
beginning July 1974. December 31, 1938, have been published in the “Treasury Bulletin.” Data from inception
to September 30, 1978, may be found on the statements published in the January 1979
“Treasury Bulletin.”
June 2009