Special Drawing Right
Quick Summary
Special Drawing Rights (SDRs) are a type of reserve asset created by the International Monetary Fund (IMF) to supplement its members' official reserves. They were devised to address the issue of creating adequate reserves without requiring the United States to run large deficits.1
Key features of SDRs include:
* Allocation: SDRs are allocated to IMF members in prearranged quantities.1
* Usage: They can be used to discharge international indebtedness without being subject to negotiations or conditions.1
* Repayment: There is a modified repayment obligation, with members able to use up to 70% of their allocation without needing to repay.1
* Value: The value of SDRs is based on the currencies of the IMF's largest exporting members.1
Initially allocated in 1969, SDRs have since seen additional allocations, more than doubling their total amount. Their use has also expanded, allowing other international agencies to utilize them in monetary exchange.1
Ask Britannica AI about this topic
Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.
International Monetary FundFinancing balance-of-payments deficits…for purchase are denominated in Special Drawing Rights (SDRs), whose value is calculated daily as a weighted average of four currencies: the U.S. dollar, the euro, the Japanese yen, and the British pound sterling. SDRs are an international reserve asset created by the IMF in 1969 to supplement members’ existing…
Read More…for purchase are denominated in Special Drawing Rights (SDRs), whose value is calculated daily as a weighted average of four currencies: the U.S. dollar, the euro, the Japanese yen, and the British pound sterling. SDRs are an international reserve asset created by the IMF in 1969 to supplement members’ existing…
Read More- international payment and exchangeThe International Monetary Fund
Quotas are payable partially in Special Drawing Rights (see below Special Drawing Rights) and partially in a country’s own currency. A country’s quota closely approximates its voting power, the amount of foreign exchange it may purchase (Drawing Rights), and its allotment of Special Drawing Rights. The Fund makes its stock…
Read MoreQuotas are payable partially in Special Drawing Rights (see below Special Drawing Rights) and partially in a country’s own currency. A country’s quota closely approximates its voting power, the amount of foreign exchange it may purchase (Drawing Rights), and its allotment of Special Drawing Rights. The Fund makes its stock…
Read More - international payment and exchangeSpecial Drawing Rights
To deal with the inability of the existing system to create an adequate quantity of reserves without requiring the United States to run large deficits, a new kind of reserve called Special Drawing Rights (SDRs) was devised by the International Monetary Fund.…
Read MoreTo deal with the inability of the existing system to create an adequate quantity of reserves without requiring the United States to run large deficits, a new kind of reserve called Special Drawing Rights (SDRs) was devised by the International Monetary Fund.…
Read More
