## Considerations on the Role of the SDR

## Source details

**Canonical URL:** [Considerations on the Role of the SDR](https://www.imf.org/en/publications/policy-papers/issues/2018/04/11/pp030618consideration-of-the-role-the-sdr)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2018/04/11/pp030618consideration-of-the-role-the-sdr/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2018/04/11/pp030618consideration-of-the-role-the-sdr/index.json)
- [Bundle manifest](/en/publications/policy-papers/issues/2018/04/11/pp030618consideration-of-the-role-the-sdr/bundle-manifest.json)

## Bibliographic details
- Published: April 11, 2018

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### Executive summary
- 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.

### Findings on IMS and SDR relevance
- 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.

### Concepts of an expanded SDR role
- O-SDR: the official SDR as the reserve asset administered by the IMF.
- M-SDR: SDR-denominated financial instruments, termed “market SDRs.”
- U-SDR: the SDR functioning as a unit of account.

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

### Metadata
- Subject: SDR role
- Publication date: April 11, 2018

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

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## Content in this bundle

- **Policy Paper**
  - [Policy Paper (Markdown version)](/-/media/files/publications/pp/2018/pp030618role-of-the-sdr.pdf.md){rel="alternate" type="text/markdown"}
  - [Policy Paper (PDF)](/-/media/files/publications/pp/2018/pp030618role-of-the-sdr.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2018/04/11/pp030618consideration-of-the-role-the-sdr_