IMF members will meet SDR interest payments, says paper
Fund publication notes interest rates on SDR rose sharply in last two years
An International Monetary Fund paper concludes member states will generally be able to pay interest on special drawing rights, despite higher rates.
The paper – The Financial Cost of Using Special Drawing Rights: Implications of Higher Interest Rates – reports the SDR interest rate rose from 0.05% in August 2021 to 3.95% at the end of June.
Special drawing rights are liquid reserve assets issued by the IMF to its members, which can be converted to hard currency. Their value is based on a
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