Enhancing the role of the SDR may require, at some point, revising the composition of the SDR basket in order to make it more representative of the world’s main economic regions.
Two elements should, however, be kept in mind: first, for operational reasons, it would be preferable to continue to restrict the basket to a limited number of major currencies; second, all the component currencies should be fully convertible and have well developed financial markets with full capital mobility, since by allowing arbitrage to keep the valuation of SDRbased instruments in line with that of instruments in the component currencies, this would facilitate both their development and their acceptance.