The IMF's SDR Department keeps records of members' SDR allocations and holdings; the SDR Department is also the channel through which all transactions and operations involving SDRs are conducted.
• Once allocated, members can hold their SDRs as part of their international reserves or sell part or all of their SDR allocations. Members can exchange SDRs for freely usable currencies among themselves and with prescribed holders; such exchange can take place under a voluntary arrangement or under designation by the Fund.
• IMF members can also use SDRs in operations and transactions involving the IMF, such as the payment of interest on and repayment of loans, or payment for future quota increases.