2021 Special Drawing Rights Allocation—Ex-Post Assessment Report
Policy Papers, August 29, 2023
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- 2021 Special Drawing Rights Allocation—Ex-Post Assessment Report
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Bibliographic details
- Published: August 29, 2023
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9798400254574.007
Overview
- The report follows up on the impact of the historic $650 billion 2021 SDR allocation on the global economy, documenting IMF members' use of the allocation and assessing its economic effects.
- The report finds that the allocation was beneficial for the global economy, helping meet the long-term global need for reserves and supporting market confidence.
Key findings
- The allocation was beneficial for the global economy.
- It helped meet the long-term global need for reserves.
- It supported market confidence.
- Members’ use of the allocation was mostly in line with Fund advice.
- Voluntary SDR channeling from economically stronger to more vulnerable members helped amplify the benefits of the allocation.
- The transparency and accountability of SDR holdings and use has been broadly appropriate, although some gaps remain.
Members’ use of the allocation
- Members used the allocation mostly to increase international reserve buffers.
- Some emerging market and developing countries also used the allocation to meet fiscal and external financing needs.
Costs, obligations, and capacity
- SDR interest costs have increased.
- Members’ capacity to service SDR obligations remains generally adequate.
Governance, transparency, and channeling
- Members’ use was mostly consistent with Fund advice.
- Transparency and accountability of SDR holdings and use have been broadly appropriate, but gaps remain.
- Voluntary SDR channeling from economically stronger to more vulnerable members amplified the allocation’s benefits.
Content in this bundle
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- Policy Paper