An International Monetary Fund paper concludes member states will generally be able to pay interest on special drawing rights, despite higher rates.

The paper – The Financial Cost of Using Special Drawing Rights: Implications of Higher Interest Rates – reports the SDR interest rate rose from 0.05% in August 2021 to 3.95% at the end of June.

Special drawing rights are liquid reserve assets issued by the IMF to its members, which can be converted to hard currency. Their value is based on a