Special Drawing Right(SDR) – UPSC Prelims

Special Drawing Right(SDR):
  • It is an international reserve asset created by the IMF in 1969 to supplement its member countries official reserves.
  • It is neither a currency nor a claim on the IMF.
  • The value of the SDR is based on a basket of five currencies: the U.S. dollar, the euro, the Chinese renminbi, the Japanese yen and the British pound sterling.
  • The SDR basket is reviewed every five years or earlier if warranted to ensure that the basket reflects the relative importance of currencies in the world’s trading and financial systems.

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