What is the SDR? The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries. The SDR is not a currency. It is a potential claim on the freely usable currencies of IMF members. As such, SDRs can provide a country with liquidity.

The currency value of the SDR is determined by summing the values in U.S. dollars, based on market exchange rates, of a basket of major currencies (the U.S. dollar, Euro, Japanese yen, pound sterling and the Chinese renminbi).

The IMF created the SDR as a supplementary international reserve asset in 1969, when currencies were tied to the price of gold and the US dollar was the leading international reserve asset. The IMF defined the SDR as equivalent to a fractional amount of gold that was equivalent to one US dollar.

Special drawing rights (SDRs, code XDR) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). [1] SDRs are units of account for the IMF, and not a currency per se. [2] They represent a claim to currency held by IMF member countries for which they may be exchanged. [3]

Aug 21, 2024 · Special drawing rights (SDRs) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969. It operates as a supplement to the...

Dec 5, 2024 · Special drawing rights (SDRs) are a world reserve asset whose value is based on a basket of five major international currencies. SDRs were created by the International Monetary Fund (IMF) in...

Sep 16, 2021 · The SDR allocation will benefit all IMF members and address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy, said Rice.

The latest IMF’s Currency Composition of Official Foreign Exchange Reserves (COFER) survey results show that total foreign exchange (FX) reserves decreased to $12.36 trillion. ... They are reserve assets other than monetary gold, SDRs, and reserve position in the IMF; and consist of the monetary authorities' claims on nonresidents in the form ...

Mar 26, 2025 · The IMF’s Special Drawing Rights (SDR) basket is a collection of five major international currencies used to determine the value of SDRs, which are international reserve assets created by the IMF to supplement member countries’ foreign exchange reserves. The current SDR basket includes: U.S. Dollar (USD) Euro (EUR) Chinese Renminbi (CNY)

Yield and Cost of SDRs. The IMF pays interest on the SDR holdings by member countries to increase its attractiveness as a reserve asset. It also levies a charge on the cumulative SDR allocations to members. The rate of charge is equal to the rate of interest.