Central Bank reveals Azerbaijan's share in global liquidity support through SDR

As of January 1, the volume of funds received by the Central Bank of Azerbaijan (CBA) from the International Monetary Fund (IMF) within the framework of special drawing rights (SDR) amounted to 1.17 billion manats ($688.2 million), 3% more than in the beginning of 2024, Report informs, citing the CBA.

Special Drawing Rights (SDRs) are international reserve assets allocated by the International Monetary Fund (IMF) to its member countries. A major general allocation of SDRs took effect on August 28, 2009, aimed at increasing global financial liquidity and supplementing member countries’ official reserves. Allocations are made in proportion to IMF quotas, which reflect the relative economic size of each member.

In addition, a special one-time allocation of SDRs was made on August 10, 2009, based on the Fourth Amendment to the IMF’s Articles of Agreement. Within the framework of this amendment, on September 9, 2009, a special share of SDR 34.3 million (78.41 million manat) was allocated to Azerbaijan, bringing the country’s total SDR allocation to 119.3 million (272.72 million manat).

In 2021, the IMF made another general allocation of SDRs to member countries in order to mitigate the effects of the pandemic and support the global economic recovery. At this stage, an additional SDR 375.4 million (858.164 million manats or $504.8 million) was allocated to Azerbaijan.

Member countries using SDRs can spend those funds to conduct operations with the IMF. The CBA records these distributions as foreign exchange liabilities.