Dáil Éireann Debate, Wednesday - 17 December 2025
181. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the process for determining the best use of the €4 billion received from the IMF in the form of special drawing rights (SDRs) in 2021; the rationale for storing it as with the Central Bank as ‘external reserve assets’; the other options that were available to the Irish State in relation to the €4 billion received; and if he will make a statement on the matter. [73203/25]
View answerSpecial Drawing Rights (SDRs) are an interest-bearing international reserve asset created by the International Monetary Fund (the IMF) in 1969 to supplement other reserve assets of its member countries. Its status as a reserve asset derives from the commitments of IMF members to hold and exchange SDRs and accept the value of SDRs as determined by the IMF.
The IMF allocated SDRs to its member countries in the 1970s (in response to a marked decline in world reserves, concern about increasing trade restrictions and to deal with changes in the international monetary system), in 2009 (in the context of the global financial crisis) and in 2021 (in response to the unprecedented global health and economic crisis). In total SDR 660 billion (equivalent to circa €800 billion) has been allocated of which circa 70% was allocated in 2021.
Ireland has been allocated SDR 4.1 billion (equivalent to circa €5 billion) of which SDR 3.3 billion (equivalent to circa €4 billion) was allocated in 2021. As with other countries, Ireland’s international reserve assets are held by the Central Bank of Ireland and they are made up of securities, currency deposits, SDRs and gold. In accordance with Section 3 of the Bretton Woods Agreements (Amendment) Act 1969, the Central Bank of Ireland is the designated authorised holder of SDRs allocated to the State. The overall management of Ireland’s stock of SDRs is a matter for Government in consultation with the Central Bank of Ireland in the context of its role managing the State’s reserve assets.
IMF members can exchange SDRs for freely usable currencies among themselves and with other designated prescribed holders, such as central banks and multilateral development banks. IMF members can also use SDRs in a range of other authorised operations among themselves (e.g. loans, payment of obligations, pledges) and in operations and transactions involving the IMF, such as the payment of interest on and repayment of loans, the payment for quota increases, or for contributions to certain IMF trust funds.
