Considerations on the Role of the SDR

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This paper explores whether a broader role for the SDR could contribute to the smooth functioning and stability of the international monetary system (IMS).
Recent staff assessments highlighted that the IMS has displayed considerable resilience.
Episodes of stress point to weaknesses in:
- external adjustment mechanisms;
- limitations of official liquidity provisions through the Global Financial Safety Net (GFSN);
- large-scale reserve accumulation—with systemic side effects.
The expansion of the SDR basket has renewed interest in the SDR and motivated discussion of whether there is an economic rationale for a broader SDR role.
The paper looks into how those weaknesses can be mitigated by three concepts of the SDR:
- the official SDR, the reserve asset administered by the IMF (O-SDR);
- SDR-denominated financial instruments, or “market SDRs” (M-SDR);
- the SDR as a unit of account (U-SDR).
However, the paper does not propose specific reform options.

IMS has displayed considerable resilience (as noted by recent staff assessments).
Key weaknesses identified:
- external adjustment mechanisms are imperfect;
- official liquidity provisions through the GFSN have limitations;
- large-scale reserve accumulation has systemic side effects.
The expansion of the SDR basket is a contextual factor increasing interest in broader SDR roles.

The paper examines economic rationale and mitigation potential of the three SDR concepts listed above.
The paper does not propose specific reform options.

Considerations on the Role of the SDR, (USA: International Monetary Fund, ) accessed 9/19/2026