Annual Update on SDR Trading Operations
Policy Papers, October 28, 2021
Source details
- Canonical URL
- Annual Update on SDR Trading Operations
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Bibliographic details
- Published: October 28, 2021
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513599793.007
Overview
- Provides an update on the status of the SDR trading market and operations.
- Notes that in over three decades, SDRs have been exchanged for freely usable currencies in transactions by agreement primarily through the Voluntary Trading Arrangements (VTAs).
- Describes VTAs as bilateral arrangements between the Fund and SDR participants or prescribed holders, in which the VTA members agree to buy and sell SDRs within certain limits.
- States that a fraction of transactions by agreement—sales or acquisitions of SDRs—were arranged directly between parties.
Key findings and market structure
- SDR exchanges have occurred primarily through Voluntary Trading Arrangements (VTAs).
- VTAs are bilateral arrangements between the Fund and SDR participants or prescribed holders.
- VTA members agree to buy and sell SDRs within certain limits.
- Some transactions by agreement were arranged directly between parties rather than through VTAs.
Subject areas and keywords
- Subject: Currencies, Freely usable currencies, International trade, Monetary policy, Money, Political economy, Trading arrangements
- Keywords: Allocation of SDRs; Currencies; Freely usable currencies; Middle East and Central Asia; SDR acquisitions; SDR exchanges; SDR sale; SDR sales; SDR Trading; SDR Trading Capacity; SDR trading transaction; Trading arrangements; Transactions by Agreement; Transparency; transparency policy; Use of SDRs; Voluntary Trading Arrangements (VTAs); VTA capacity; VTA market; VTA member
Content in this bundle
- Policy Paper