Like a multiple reserve currency system, it may reduce the aggregate incentives of countries that supply the consistent currencies of the SDR to run deficits. In addition, there appears to be no technical reason why the use of SDRs could not be expanded. However, the question must be asked: to what end?
Merely enhancing the role of the SDR would do little either to increase the flexibility of the system or change the incentives of surplus countries. By providing a ready swap of existing reserve currencies into a broader basket, SDR reserves could also further displace adjustment onto other freely trading currencies, thus exacerbating the imbalances in the current system.