IML (SDR)
David Salter
With a significant amount of uncertainty in the macro economic environment and the weakening of the dollar, it is unclear as to the currencies that will be winners or losers over the next decade and beyond.
An IML fund based on the IMF SDR basket of currencies may be able to balance currency risk if a suitable lending mechanism can be found.
José Santos
Thats not a bad idea... butnhow do you will make that happen if the IMF SDR is not a trade currency, is only used on accounts book?
David Salter
José Santos: Hi Jose. The actual implementation would be down to Invictus as they are smarter than I am. However, the way I would envision it is to either hold each of the different currencies in both FIAT and tokenised forms to enable arbitrage and forex opportunities or to hold native tokens based on the SDR such as Terra SDT. The fund could either follow the IMF rebalancing schedule or use its own if backtesting supports a smaller timeframe.
This would obviously be a fairly complex fund with quite a bit of administration overhead so it may not work out to be cost effective. I would hope that there would be enough opportunities in both currency trading and lending in each currency to offset that though.