The Exchange Stabilization Fund
The Exchange Stabilization Fund, operated by the U.S. Secretary of the Treasury with the President’s approval, is a major means of giving financial assistance to foreign countries. As of September 30, 1998, the ESF’s total assets were $40 billion. However, of its $10 billion special drawing rights (SDRs), $9.2 billion have already been monetized (converted into dollars) by the Federal Reserve. Moreover, the ESF’s balance sheet does not reflect commitments to provide future funding.
Suggested citation: "The Exchange Stabilization Fund," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-04, pp. 19, 04.01.1999.