Special Drawing Rights

Source details

The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.
The SDR is not a currency. It is a potential claim on the freely usable currencies of IMF members and can provide a country with liquidity.
The value of the SDR is based on a basket of five currencies: the US dollar, Euro, Chinese Yuan (renminbi), Japanese Yen, and the British Pound (pound sterling).
The SDR is an accounting unit for IMF transactions with member countries and is described as a stable asset in countries’ international reserves.

The Fund has allocated a total of SDR 660.7 billion (equivalent to about US$943 billion).
The Fund has allocated a total of SDR 660.7 billion (equivalent to about US$935.7 billion), including four general allocations and a one-time special allocation.
Specific allocations:
- SDR 9.3 billion was allocated in yearly installments in 1970–72.
- SDR 12.1 billion was allocated in yearly installments in 1979–81.
- SDR 161.2 billion was allocated on August 28, 2009.
- A special one-time allocation of SDR 21.5 billion took effect on September 9, 2009 (the Fourth Amendment special allocation).
- SDR 456.5 billion (equivalent to about US$650 billion) was allocated on August 23, 2021, by far the largest allocation to date.
New members to the Fund receive an SDR allocation upon their participation in the SDR Department.

The largest-ever allocation of about SDR 456 billion was approved on August 2, 2021 (effective on August 23, 2021).
The most recent allocation was intended to address the long-term global need for reserves and help countries cope with the impact of the COVID-19 pandemic.

Since the onset of the pandemic, SDR channeling (and equivalent currency amounts) has helped many countries in need, especially those eligible for financial support from the IMF’s Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust (RST).
PRGT channeling and support:
- Since 2020, SDR channeling of $60 billion has supported interest-free loans through the PRGT for the poorest members.
- Loans amounting to about $39 billion through September 15, 2026, have been committed to 57 countries.
RST channeling and support:
- Channeling has supported operations of the RST, which delivers affordable long-term financing to help vulnerable countries tackle long-term challenges including climate change.
- To date, 23 RST partners have channeled or committed to channeling about $49 billion to the RST.
- The RST is expected to contribute toward meeting an estimated $29 billion in affordable financing.

SDRs are an asset but not money in the classic sense because they cannot be used to buy things directly.
SDRs are a potential claim on freely usable currencies of IMF members, enabling liquidity provision.
The SDR serves both as a reserve asset and as an accounting unit for IMF operations.