Time to Improve SDR Market Infrastructure
During the Spring Meetings of the International Monetary Fund and World Bank in Washington this past weekend the Vice Governor of the People’s Bank of China called for an improvement to the existing SDR market infrastructure.
Yi Gang stated that the new SDR bond market still lacked liquidity and suggested that market institutions could increase the use of the SDR as a unit of account. This would encourage further participation in the SDR market and would further build on the advances which were made last year when the World Bank started selling three year SDR bonds. This was followed by Standard Chartered Bank of Hong Kong issuing one year SDR denominated bonds.
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