How to Record the Allocations of Special Drawing Rights in Government Finance Statistics

Technical Notes and Manuals, June 7, 2022

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How to Record the Allocations of Special Drawing Rights in Government Finance Statistics

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Bibliographic details

• Published: June 7, 2022
• Series: Technical Notes and Manuals
• DOI: https://doi.org/10.5089/9798400209512.005

Summary

• Provides statistical guidance to IMF staff and country authorities on recording the 2021 general allocation of Special Drawing Rights (SDRs) in government finance statistics (GFS); guidance is also applicable to previous SDR allocations.
• Emphasizes that SDR allocations received by members are:
  • recorded as a liability in the form of SDR allocations vis-à-vis the SDR Department of the IMF;
  • part of gross debt of the public sector unit (Ministry of Finance/Treasury or central bank or other publicly controlled entity) on whose balance sheet SDRs are recorded;
  • accompanied by a corresponding entry for SDR holdings as a financial asset.
• States that no transfer of wealth occurs due to the SDR allocation.
• Notes that the statistical guidelines do not specify on whose balance sheet SDR holdings and allocations should be recorded; this decision is determined by the member’s domestic legal and institutional arrangements.

Key statistical guidance and findings

• Recording treatment:
  • SDR allocations received by members → liability: "SDR allocations vis-à-vis the SDR Department of the IMF".
  • Corresponding entry → asset: "SDR holdings" recorded as a financial asset.
  • Liability classification → part of gross debt of the public sector unit on whose balance sheet SDRs are recorded.
• Economic effect:
  • "No transfer of wealth occurs due to the SDR allocation."
• Applicability:
  • Guidance applies to the 2021 general allocation and is also applicable to previous SDR allocations.
• Allocation recording decision:
  • The statistical guidelines do not mandate which public sector unit records SDR holdings and allocations; determination depends on domestic legal and institutional arrangements.

Implementation considerations for compilers and authorities

• Determine which public sector unit (Ministry of Finance/Treasury, central bank, or other publicly controlled entity) will record SDR holdings and allocations based on domestic legal and institutional arrangements.
• Ensure gross debt of the designated public sector unit includes the SDR allocation liability.
• Ensure accounting entries include the corresponding financial asset for SDR holdings to reflect the offsetting position.
• Recognize that recording SDRs this way does not imply a change in net wealth at the point of allocation.

Subjects and keywords

• Subjects: Expenditure, External debt, Fiscal policy, Foreign exchange, Money, Public debt, Public financial management (PFM)
• Keywords: allocation of SDR, allocations of special drawing rights, balance sheet SDR holding, Currencies, Financial statements, fiscal policy analysis, fiscal statistics, GFS recording, Global, government finance division, gross debt, Interest payments, SDR allocation, SDRs, Special drawing rights

How to Record the Allocations of Special Drawing Rights in Government Finance Statistics — Technical Notes and Manuals No. 2022/003.

Content in this bundle

• Annex I. Illustrative Description of the Recording in Government Accounts
  • Annex I. Illustrative Description of the Recording in Government Accounts (Markdown version)
  • Annex I. Illustrative Description of the Recording in Government Accounts (PDF)