Research Articles on SDR Currency

SDR (Special Drawing Rights) is a facility akin to an international monetary asset held by the International Monetary Fund (IMF). According to a report by Al Jazeera, Iran holds an allocation equivalent to USD 2.1 billion in SDRs.

But what exactly is the nature of this international monetary instrument, and what are its related jurisprudential (fiqhi) rulings? This is a contemporary issue on which little has been written in Persian.

The topic has been subjected to detailed fiqhi analysis in the dars al-kharij (advanced jurisprudence course) of Ayatollah Seyyed Mohammad Reza Modarresi, respected faqih and member of Iran’s Guardian Council.

In line with its mandate, the Department of Contemporary Jurisprudence (Fiqh) of the Islamic Seminaries (Daftar-e Fiqh-e Mo‘āṣer) has compiled and translated authoritative international sources and made their explanations available to the instructor, to be presented as needed. The translations and analyses of these texts will be officially published in the near future.

In response to requests from scholars, the sources on this subject are introduced below so that researchers attending the course, as well as other seminarians and scholars, may benefit from them.

It should be noted that the introduction of bibliographical and knowledge-based sources on contemporary issues is solely intended to facilitate accurate understanding of the subject matter and does not imply endorsement of the analyses or recommendations contained in those texts.

Research Articles on the SDR (Special Drawing Rights)

1. International Liquidity and the Role of the SDR in the International Monetary System
Authors: Peter B. Clark & Jacques J. Polak

As this article was published by the International Monetary Fund, it combines theoretical discussion with practical and operational dimensions. Accordingly, most analyses are grounded in concrete and real-world experience. The authors were senior advisors and directors in the IMF’s Research Department.

Clark, P. B., & Polak, J. J. (2004). International Liquidity and the Role of the SDR in the International Monetary System. IMF Staff Papers, 51(1), 49–71.

2. Users’ Guide to the SDR: A Manual of Transactions and Operations in Special Drawing Rights
Authors: IMF Treasurer’s Department

This guide, prepared by the IMF, explains the various theoretical aspects of SDRs in clear language and also examines different types of contracts from a practical perspective.

International Monetary Fund, Treasurer’s Department. (1995). Users’ Guide to the SDR: A Manual of Transactions and Operations in Special Drawing Rights. International Monetary Fund.

3. Review of the Method of Valuation of the SDR
Editors: Simon Hagan, Siddharth Tiwari, and Andrew Tweedie

Also published by the IMF, this is a highly technical paper examining the valuation and pricing of SDRs. It covers the composition, size, and weighting of the SDR currency basket, as well as the financial instruments used to determine its interest rate. A notable feature of this paper is the involvement of advisors from the IMF’s financial, legal, strategic, and policy departments.

Tweedie, A., Hagan, S., & Tiwari, S. (2015). Review of the Method of Valuation of the SDR. IMF Policy Paper, 2015(10).

[Click here to download the articles]

Introducing a Key International Reference Book on SDRs

Book Title: Special Drawing Rights (SDRs): The First International Money
Author: Christopher Wilkie
Publisher: Oxford University Press

This book explores the history of the SDR, its nature, the philosophy behind its creation, and its significance. It also examines the role of SDRs as a source of support and stability for the global economy in times of financial crisis.

In addition to his academic background at leading institutions such as the London School of Economics (LSE) and the University of Oxford, the author has held several executive positions, including roles in Canada’s Department of Foreign Affairs and International Trade, serving as Canada’s senior representative to the World Trade Organization and the UN Conference on Trade and Development, and acting as the chief negotiator for Canada’s investment agreements with China, new EU member states, and other countries.

Wilkie, C. (2012). Special Drawing Rights (SDRs): The First International Money. Oxford University Press.

[Click here to purchase the book from Amazon]