Applications To Become Holders of SDRS

This paper presents for the Executive Board’s consideration five applications by official entities to become prescribed holders of SDRs. Staff recommends that the Executive Board prescribe the five applicants as holders of SDRs.
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Volume/Issue: Volume 2023 Issue 002
Publication date: February 2023
ISBN: 9798400230752
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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Money and Monetary Policy , Political Economy , transparency policy , IMF decision , members channeling SDRS , SDR market , SDRS channeling , Reserve assets , Multilateral development institutions , Investment banking , Operational risk , Freely usable currencies , Caribbean , West Africa

Summary

The International Monetary Fund (IMF) approved on February 8, 2023 the applications of the Caribbean Development Bank (CDB), the Development Bank of Latin America (known as Corporacion Andina de Fomento or CAF), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the Inter-American Development Bank (IADB) to become prescribed holders of Special Drawings Rights (SDRs). The SDR is 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). Prescribed holders may acquire, hold and use SDRs in transactions by agreement and in operations. Approval of these five institutions brings the number of prescribed holders to twenty.