This chapter of the book provides information about SDR (Special Drawing Rights) which was established in 1969 under the post-war period and within the Bretton Woods system to finance the expansion of international trade and finance and to supplement other reserve assets whose growth was deemed insufficient to support the Bretton Woods fixed exchange rate system and which is an instrument that serves as a kind of insurance on the international financial system by presenting a general framework in the light of recent developments in this field. In this context, the readers are intented to be enlightened about the historical process requiring the emergence of SDR; SDR allocations; latest up-to-date data on the overall allocation of SDRs to developed countries, developing countries and selected developing regions; data on the general distribution of the SDR classified by type of exchange rate regime and category of income; SDR allocation and return commitments data by country; limitations of special drawing rights; the advantages and disadvantages of special drawing rights; characteristics of special drawing rights.

These deductions can be drawn from the chapter as conclusion and recommendations: The new allocation of special drawing rights can provide a basis upon which future IMF programmes could potentially be built. Currently, the special drawing rights system fails to meet the significant financial resources needed to tackle the rising government refinancing costs and spending requirements of developing countries and least developed countries following the covid-19 pandemic. Any solution that is going to be addressed to these problems is essential for the proper functioning of the special drawing rights system.