1. USSGL Board Presentation May 20, 2010 International Monetary Fund Assets Exchange Stabilization Fund Assets Valuation Change in Investments - ESF

2. Background: Exchange Stabilization Fund The ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and Special Drawing Rights (SDR) assets, and to provide financing to foreign governments. All operations of the ESF require the explicit authorization of the Secretary of the Treasury ("the Secretary").

3. Proposed New USSGL* 1193 International Monetary Fund Assets – Reserve Position  The balance of assets held in the International Monetary Fund excluding holdings of Special Drawing Rights *Refer to USSGL Voting Ballot #10-01 for complete description

4. Proposed New USSGL* 1194 Exchange Stabilization Fund Assets – Holdings of Special Drawing Rights  Special Drawing Rights held in the Exchange Stabilization Fund *Refer to USSGL Voting Ballot #10-01 for complete description.

5. Proposed New USSGL* 5921 Valuation Change in Investments – Exchange Stabilization Fund  The accumulated unrealized gain or loss on financial stability and foreign currency investments in the Exchange Stabilization Fund. Unrealized gain or loss is due to adjustments for market value to assets. Although the normal balance for this account is credit, it is acceptable in some instances for this account to have a debit balance. *Refer to USSGL Voting Ballot #10-01 for complete description *Refer to SFFAS 7, Accounting for Revenue and Other Financing Sources, Paragraph 238.

6. Proposed Modification to Existing USSGL Accounts 1195 Other Monetary Assets  The balance of monetary assets for which a specific USSGL account has not been established. This includes gold (valued at market). It excludes monetary assets seized, (See USSGL account 1531, “Seized Monetary Instruments.”), special drawing rights, U.S. reserves in the International Monetary Fund, and all Exchange Stabilization Fund activity.

7. Purpose of Proposed Accounts USSGL Account 1195, “Other Monetary Assets” with specific attributes were being directed to two business lines

8. Impact on USSGL Crosswalks USSGL Account Number Balance SheetNet CostNet PositionCustodial Activity Reclassified Balance Sheet Reclassified Net Cost 1193Line 7 Cash and Other Monetary Assets N/A TBDN/A 1194Line 7 Cash and Other Monetary Assets N/A TBDN/A 5921Line 32 (Cum. Results of Ops- Earmarked) Line 33 (Cum. Results of Ops –Other Funds) Line 2 (Earned Revenue) N/A Line 9.1 (Net Position- Nonearmarked Funds) Line 9.2 (Net Position- Earmarked Funds) Line 9 (Non-Federal Earned Revenue)

9. Any Questions?