of Che United States dollar over time should be measured. This is because the SDR itself is a composlte traale-weighted cuErency unit of several currencies includlng the United states dollar. At Present the sDR valuation basket con€lsts of flve major currencies, with weights broadly reft-ecting the relatlve imPortance of these currencies in incernational trade and finance (i.e, unlted ststes 'lollarA/40/S19 English Page68 Notes(continued) 42percent,Deutsche mark19percentandFrenchfranc,Japanese yenandpound .sterling 13percenteach). !l!COmposite scenario Foftable23hasalargerimpactonGDPgrowthrates butislessrealistic thanscenario E.A/40/5r9 English Page 69 ANNEX TO SECTION III Assumptions underlying the baseline proJections l. The baseline projections for the LINK Project and the Fugi Model cover the yearE 1985-1990. Projections of the World Bank cover the period 1985-1995 and those of IMF relate to lhe period 1986-1990. 2. The baseline projectlons made lrith the LINK econometric model for the period 1985-L990 assume: (a) a neutral monetary policy and cautious restraint in fiscalpollcy in oost of the major developed countries, (b) a sLight easing ln lnterest rates but on the whole, no substantial decline ln interest rates over the periodt (c) a depreciation of che effective United states dollar rate by about 15 per cent in 1987 compared wiLh mid-1985; and (d) smooth movement in oil prices, according to which nominal oil prices are expected to show a reduction of 6 per cent in 1985, and remain flat ln 1986, and then rise by 3 per cent in 1987, and subseguently by 5 per cent a year in line with the OECD rate of inflation. 3. For the Fugi Modelrs baseline projections, a continuation of present fibnetary and fiscal policies is assumed. The projections further assu.ne that trade restrictlonE in OECD countries will remain at lhe level prevailing at end-l-984 and that ODA assistance to developing countries will be at the sane percentage level. of