Special drawing rights are a reserve and payment instrument issued by the IMF. It exists only in the non-cash form in the form of entries in bank accounts.
As part of the issuance, the money is deposited into its account by an agent who manages the SDR on behalf of the country. From an accounting point of view for the country, these resources will be an asset, not a liability, and will increase the country's international reserves by the amount of the issuance.
"Today 1,9 bln SDR arrived in Ukraine's account in the IMF! These are the funds of the new issue, which the IMF Board of Directors distributed to the countries in proportion to their capital in the IMF. A great gift for Independence Day! Glory to Ukraine!", said the first deputy governor of the National Bank of Ukraine Kateryna Rozhkova.
"This separation will benefit all members by meeting the long-term global need for reserves, building confidence and contributing to the resilience and stability of the global economy. It will especially help the most vulnerable countries, which are struggling to cope with the effects of the COVID-19 crisis," the IMF said in a statement.
