|
Special Drawing Rights (SDRs)
|
Created in 1969 by the International Monetary Fund (IMF) as a supplemental international monetary reserve asset, SDRs are available to governments through the IMF and may be used in transactions between the IMF and member governments. IMF member countries have agreed to regard SDRs as complementary to gold and reserve currencies in settling their international accounts. The unit value of an SDR reflects the foreign exchange value of a "basket" of currencies of several major trading countries (the U.S. dollar, the German mark, the French franc, the Japanese yen, and the British pound). The SDR has become the unit of account used by the IMF and several national currencies are pegged to it. Some commercial banks accept deposits denominated in SDRs.
See also:
Currency,
International Monetary Fund,
Reserve Currency,
|
