Special Drawing Rights


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Special Drawing Rights

(SDRs), type of international monetary reserve currency established (1968) by the International Monetary FundInternational Monetary Fund
(IMF), specialized agency of the United Nations, established in 1945. It was planned at the Bretton Woods Conference (1944), and its headquarters are in Washington, D.C.
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 (IMF). Created in response to worries concerning the limitations of gold and dollars as the sole means of settling international accounts, SDRs are designed to augment international liquidity by supplementing the standard reserve currencies. SDRs are assigned to the accounts of IMF members in proportion to their contributions to the fund. Each participating country agrees to accept them as exchangeable for reserve currencies in the settlement of international accounts. Deficit countries can use them to purchase stronger currencies, which then can be used to pay off balance-of-payments debts. As nations adopted the current system of floating exchange rates (1973), the value of SDRs began to be set relative to a "basket" of major currencies. In 1976 the IMF increased the share of the less-developed countries and moved to make SDRs the primary reserve asset of the international monetary systeminternational monetary system,
rules and procedures by which different national currencies are exchanged for each other in world trade. Such a system is necessary to define a common standard of value for the world's currencies.
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, supplanting gold and dollars. In 1981 the IMF reduced the basket to five currencies (the U.S. dollar, German Deutschmark, Japanese yen, French franc, and British pound). In 1999 the Deutschmark and franc were replaced by their equivalents in the euro, and in 2016 the Chinese yuan was added to the basket. All IMF accounting is done in SDRs, and commercial banks accept SDR-denominated accounts. The IMF has the exclusive right of allocating SDRs; the last such allocation was made in 2009.
References in periodicals archive ?
The special drawing rights fell by five percent to SR 35.2 billion against SR 37.1 billion for the same period last year.
Having met the targets of the first test of the Intl Monetary Fund (IMF) Standby Arrangement (SBA), Jamaica can now access 63.7 million Special Drawing Rights (SDR) equivalent to JA$8 billion (just under US$94 million), reports JIS (June 25, 2010).
During the week under review, the gold reserves remained static at $19.89 billion, while the Special Drawing Rights (SDRs) stood at $4.987 billion, down from $4.932 billion in the preceding week, the data showed.
The amendment to Resolution 600b standardizes the application of the 19 Special Drawing Rights (SDRs) per kilogram Montreal Convention liability limit to all routes worldwide.
Another option to lessen dependence on the dollar would be greater use of special drawing rights (SDR), considered more stable.
Were going to provide some ideas, built around a Green Fund devoted to finance 100 billion dollars (72 billion Euros) a year which is the figure currently accepted for addressing the problem based on the capitalisation coming from central banks, backed by special drawing rights issued by the Fund, he said.
It added that the funding took place through the allocation of Special Drawing Rights (SDR) to IMF members that are participants in the SDRs Department in proportion to their existing quotas in the fund, which are based broadly on their relative size in the global economy.Aa
Bulgaria has received from the International Monetary Fund (IMF) 474 586 534 Special Drawing Rights (SDRs), equivalent to about 517 million euro, Darik Radio said.
The Executive Board of the International Monetary Fund (IMF) has backed an allocation of Special Drawing Rights (SDRs) equivalent to $250 billion to provide liquidity to the global economic system by supplementing the fund's 186 member countries' foreign exchange reserves.
The International Monetary Fund (IMF) has backed an allocation of Special Drawing Rights (SDRs) equivalent to $250 billion to boost global liquidity by supplementing the Fund's 186 member countries' foreign exchange reserves.
The centerpiece of the book is his proposal concerning the use of a currency issued by the IMF called Special Drawing Rights (S.D.R.s) to greatly enhance aid to the developing world.
Then there's wealthy currency speculator George Soros, who argues for more special drawing rights -- essentially low-interest credit cards for governments.

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