Selected Decisions and Selected Documents of the IMF, Thirty- Eighth Issue -- Use of SDRs in Forward Operations

Prepared by the Legal Department of the IMF
As updated as of February 29, 2016

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ARTICLE XIX, SECTION 2
Special Drawing Rights: Additional Uses

USE OF SDRS IN FORWARD OPERATIONS

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

  • 1. A participant, in agreement with another participant, may engage in an operation by which the participant undertakes to transfer to the other participant SDRs at a specified future date more than three business days after the date of the agreement, in exchange for an agreed amount of currency or another monetary asset, other than gold.

  • 2. 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.

  • 3. 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; and

    • (c) any modification of these terms.

  • 4. 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.

  • 5. 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.

  • 6. 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.

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

Decision No. 6337-(79/178) S,

November 28, 1979

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