Special drawing rights (SDR)

What is Special drawing rights (SDR)?

Special drawing rights (SDR) meaning Reserve assets created by the International Monetary Fund (IMF) and periodically allocated to IMF members in proportion to their respective quotas. The IMF determines the value of SDRs daily by summing, in U.S. dollars, the values–based on market exchange rates–of a weighted basket of currencies. SDRs can be used to acquire other members’ currencies, to settle members’ financial obligations, and to extend loans.

 

reference: BEA Bureau of Economic Analysis. US Department of Commerce

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