Special Drawing Rights

Concept:  Special drawing rights Topic: Economy Category: World Economy Related News: BS, Apr 28 CNA mentions: (Apr 29)       

Economy is an integral part of the UPSC syllabus. Candidates should learn about the basics of the Indian economy and also develop an understanding of the important terms and concepts in economics for the IAS exam. In this article, you can read a brief about the Special Drawing Rights, meaning, concept, etc.

Special drawing rights (SDR) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund. The currency code is XDR. XDR is the unit of account for the IMF, and is not a currency in the actual sense of the word. XDRs represent a claim to currency held by IMF member countries for which they may be exchanged. The XDR was made in 1969 to supplement a shortfall of preferred foreign exchange reserve assets, namely gold and the U.S. dollar. XDRs are allocated to countries by the IMF. Private parties do not hold or use them. The amount of XDRs in existence was around XDR 21.4 billion in August 2009. By the year 2014, total value of XDRs in place was XDR 204 billion.

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