Applications To Become Holders of SDRS

Policy Papers, February 21, 2023

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Applications To Become Holders of SDRS

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Bibliographic details

• Published: February 21, 2023
• Series: Policy Papers
• DOI: https://doi.org/10.5089/9798400230752.007

Approval decision

• The International Monetary Fund (IMF) approved on February 8, 2023 the applications of the following institutions to become prescribed holders of Special Drawing Rights (SDRs):
  • Caribbean Development Bank (CDB)
  • Development Bank of Latin America (known as Corporacion Andina de Fomento or CAF)
  • European Bank for Reconstruction and Development (EBRD)
  • European Investment Bank (EIB)
  • Inter-American Development Bank (IADB)

SDR definition and legal authorization

• The SDR is described as "an international reserve asset created by the IMF to supplement the reserves of IMF members that participate in the SDR Department."
• The IMF’s Articles of Agreement authorize the IMF to prescribe (i.e., approve) as holders of SDRs:
  • (i) non-members,
  • (ii) members that are not participants in the SDR Department;
  • (iii) institutions that perform functions of a central bank for one or more IMF member countries; and
  • (iv) other official entities (which all five entities approved on February 8 are).

Rights and operations for prescribed holders

• Prescribed holders may:
  • acquire SDRs,
  • hold SDRs, and
  • use SDRs in transactions by agreement and in operations.

Outcome and key counts

• Approval of the five institutions on February 8, 2023 brings the number of prescribed holders to twenty.

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