IMF Financial Operations: Special Drawing Rights

Source details

Country authorities, policy makers, Fund-watchers, and members of the public who are keen to learn more about the SDR, understand its role in the global economy and how the SDR system functions.

Access to a computer with a reliable Internet connection and a Google Chrome web browser is essential.

Provides a common framework for learners to understand the Special Drawing Right (SDR).
Begins with background on why the SDR was created and its role in the global economy and in the IMF's financial operations.
Explains key characteristics of the SDR and how it is valued, including:
- Selection criteria for the currencies in the SDR basket.
- Methodology behind calculating the SDR interest rate (SDRi).
Delves into uses of SDRs, covering:
- How SDRs can be used in financial transactions between countries.
- How the SDR market functions.
Uses real-world case studies showcasing how different countries utilized their SDR allocations in 2021 to demonstrate the SDR's impact across various economies and to make theoretical knowledge applicable in practice.

Upon completion of this course, participants should be able to:

Explain what SDRs are, why they were created, and their uses.
Describe the composition of the SDR basket and its valuation.
Discuss how member country SDR allocations and holdings are determined.
Explain the role of the SDR interest rate (SDRi) and how it is computed.
Describe the various ways in which SDRs are used or could be used in transactions and operations.
Relate the benefits of SDRs using real-life case studies.