IMF Executive Board Approves the Applications of Five Institutions to Become Holders of Special Drawing Rights
IMF News, February 21, 2023
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- Published: February 21, 2023
Executive Board decision and timeline
- The Executive Board of the International Monetary Fund (IMF) approved on February 8, 2023 the applications of five institutions to become prescribed holders of Special Drawings Rights (SDRs).
- Press Release No. PR2347
- Publication date on the IMF site: February 21, 2023
- Press contact: PRESS OFFICER: Nicolas Mombrial; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson
Institutions approved
- Caribbean Development Bank (CDB)
- Development Bank of Latin America (known as Corporacion Andina de Fomento or CAF)
- European Bank for Reconstruction and Development (EBRD)
- European Investment Bank (EIB)
- Inter-American Development Bank (IADB)
- Approval of these institutions brings the number of prescribed holders to twenty.
Rights, permitted uses, and operational arrangements for prescribed holders
- Prescribed holders may acquire, hold and use SDRs in operations with other prescribed holders and participants in the SDR Department.
- The SDR Department maintains records on SDR transactions, holdings, and allocations.
- All IMF members are currently participants in the SDR Department.
- Under current IMF decisions, prescribed holders may exchange SDRs for currency, and use SDRs in certain operations, including:
- loans,
- settlement of financial obligations,
- swaps,
- pledges,
- transfer as security for the performance of financial obligations,
- forwards,
- donations.
- Prescribed holders may elect to participate in the SDR Voluntary Trading Agreements (VTAs) or enter into bilateral agreements to conduct their exchanges of SDRs.
Limitations that apply to prescribed holders
- Unlike participants in the SDR Department, prescribed holders:
- do not receive allocations of SDRs,
- may not request an exchange of SDRs in transactions with designation.[1]
Legal basis and classification of approved applicants
- The IMF’s Articles of Agreement authorize the Fund to prescribe as holders of SDRs:
- (i) non-members,
- (ii) members that are not participants in the SDR Department,
- (iii) institutions that perform functions of a central bank for one or more IMF member countries,
- (iv) other official entities.
- The five applicants approved on February 8, 2023 are classified as “other official entities”.
Current list of prescribed holders (as attached)
- African Development Bank (AFDB)
- African Development Fund (AFDF)
- Arab Monetary Fund (AMF)
- Asian Development Bank (ADB)
- Bank for International Settlements (BIS)
- Bank of Central African States (BEAC)
- Caribbean Development Bank (CDB)
- Central Bank of West African States (BCEAO)
- Development Bank of Latin America (Corporacion Andina de Fomento or CAF)
- Eastern Caribbean Central Bank (ECCB)
- European Central Bank (ECB)
- European Bank for Reconstruction and Development (EBRD)
- European Investment Bank (EIB)
- Inter-American Development Bank (IADB)
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Fund for Agricultural Development
- Islamic Development Bank
- Latin American Reserve Fund (FLAR) - Former Andean Reserve Fund
- Nordic Investment Bank
[1] For additional information please see IMF Financial Operations Handbook, including Box 4.9 on the designation mechanism.
Source: IMF Communications Department press release posted February 21, 2023.
