Special Drawing Right(SDR) – UPSC Prelims

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.