Policy Papers

2021 Special Drawing Rights Allocation—Ex-Post Assessment Report

Publication Date:

August 29, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This report follows up on the impact of the historic $650 billion 2021 SDR allocation on the global economy, documenting IMF members' use of the allocation and assessing its economic effects. The report finds that the allocation was beneficial for the global economy, helping meet the long-term global need for reserves and supporting market confidence. Members used the allocation mostly to increase international reserve buffers, with some emerging market and developing countries also using it to meet fiscal and external financing needs. While SDR interest costs have increased, members’ capacity to service SDR obligations remains generally adequate. Members’ use of the allocation was mostly in line with Fund advice, and the transparency and accountability of SDR holdings and use has been broadly appropriate, although some gaps remain. Voluntary SDR channeling from economically stronger to more vulnerable members has helped amplify the benefits of the allocation.

Series:

Policy Paper No. 2023/035

Subject:

Central Banks Credit default swap Currencies Financial services Freely usable currencies International reserves Monetary policy Money Political economy SDR interest rate

Notes:

2021 Special Drawing Rights Allocation—Ex-Post Assessment Report—Background Paper

Frequency:

occasional