Selected Decisions and Selected Documents of the IMF, Thirty- Ninth Issue -- Use of SDRs in Swap Operations

Prepared by the Legal Department of the IMF
As updated as of March 31, 2017

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Special Drawing Rights: Additional Uses


In accordance with Article XIX, Section 2(c), the Fund prescribes that:

  • 1. A participant, by agreement with another participant, may engage in an operation by which (a) one of the parties transfers to the other party SDRs in exchange for an equivalent amount of currency or another monetary asset, other than gold, in respect of which arrangements have been completed for determination by the Fund of equal value in terms of the SDR on the basis of Article XIX, Section 7(a) and Rule O-2, and (b) the parties undertake to reverse the exchange within a period and at an exchange rate agreed by them.

  • 2. Calculations for the purpose of 1(a) above shall be made at the exchange rate of the third business day preceding the date of the transfer or of the second business day preceding the date of the transfer if agreed by the parties.

  • 3. The parties may agree on the terms of the operation, and may modify those terms, provided that the terms and any modification of them would be consistent with this prescription.

  • 4. The parties may agree on the payment of compensation in the event that, for any reason, the reversal of the transfer in accordance with 1(b) above is not carried out.

  • 5. Participants intending to use or receive SDRs pursuant to this prescription shall inform the Fund of

    • (a) the amount of SDRs and the period of the operation;

    • (b) the monetary asset, the exchange rate and the value date for the exchange under 1(a) above;

    • (c) the monetary asset, the exchange rate and the value date for the reversal of the exchange;

    • (d) any agreement for the payment of interest, or compensation in accordance with 4 above; and

    • (e) any modification of these terms.

  • 6. As required by Rule P-7 the parties to an operation pursuant to this prescription shall declare that the intended use of SDRs will be in accordance with this prescription.

  • 7. Transfers of SDRs pursuant to this prescription shall be made only upon the receipt by the Fund of instructions from the transferor and the transferee.

  • 8. If the Fund decides to change any of the terms and conditions of this prescription, any outstanding operation that is inconsistent with the new terms and conditions shall be completed within 12 months from the date of the Fund’s decision.

  • 9. The Fund shall record operations pursuant to this prescription in accordance with Rule P-9.

Decision No. 6336-(79/178) S,

November 28, 1979

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