Annual Update on SDR Trading Operations

Policy Papers, October 6, 2022

Source details

This paper provides an update on the status of the SDR trading market and operations one year after the historic fourth general allocation of SDRs.
In the reporting period, SDR trading has been dominated by SDR sales due to the 2021 SDR allocation.
The VTAs continue to have ample capacities to meet the demand for exchange of SDRs into currencies.
Staff has made significant progress in further strengthening the SDR trading market.
Since the SDR allocation, eight new VTA members have been welcomed to the SDR trading market and many existing VTA members provided additional operational flexibilities.
Discussions with a number of potential new entrants continue in the broader context of SDR channeling, which encourages contributors to have VTAs.

Dominant activity: SDR sales driven by the 2021 SDR allocation.
Primary operational outcome: VTAs maintained ample capacities to meet demand for exchange of SDRs into currencies.

Net change in membership: eight new VTA members have been welcomed to the SDR trading market since the SDR allocation.
Operational changes: many existing VTA members provided additional operational flexibilities.
Ongoing engagement: discussions continue with a number of potential new entrants in the broader context of SDR channeling, which encourages contributors to have VTAs.

Staff progress: significant progress reported in further strengthening the SDR trading market (no additional operational detail provided on the page).