Special Drawing Rights for Sustainable Development

The Sevilla Commitment highlights the need to unlock resources through a broad set of financial instruments to achieve sustainable development, such as Special Drawing Rights (SDRs). SDRs are an international interest-bearing reserve asset created by the International Monetary Fund (IMF) that supplements other reserve assets. SDRs are allocated based on countries’ IMF quota, with advanced economy countries receiving the bulk of the global allocation. SDRs are not a currency and cannot be spent directly. They can, however, be exchanged for freely usable currencies through the IMF’s mechanisms or used in authorised financial operations. This helps countries access funds in times of pressure and maintain economic stability. The value of SDRs is based on a weighted basket comprising of Chinese renminbi, euro, Japanese yen, pound Sterling and United States dollar, which gives them stability.