Search Investopedia

Special Drawing Rights - SDR

Filed Under » , ,
Dictionary Says

Definition of 'Special Drawing Rights - SDR'

An international type of monetary reserve currency, created by the International Monetary Fund (IMF) in 1969, which operates as a supplement to the existing reserves of member countries. Created in response to concerns about 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.
Investopedia Says

Investopedia explains 'Special Drawing Rights - SDR'

You can think of SDRs as an artificial currency used by the IMF and defined as a "basket of national currencies". The IMF uses SDRs for internal accounting purposes. SDRs are allocated by the IMF to its member countries and are backed by the full faith and credit of the member countries' governments.

Related Definitions

  •

    Currency

    A generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. Used as a medium of exchange for goods and ...
    Read More »

  • International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability.2. Facilitating the expansion and balanced growth of international trade.3. ...
    Read More »

  • World Trade Organization - WTO

    An international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible.
    Read More »

    • Balance Of Payments - BOP

      A record of all transactions made between one particular country and all other countries during a specified period of time. BOP compares the dollar difference of the amount of exports ...
      Read More »

    • Foreign Currency Effects

      The gain or loss on foreign investments due to changes in the relative value of assets denominated in a currency other than the principal currency with which a company normally conducts ...
      Read More »

    • Liquidity

      1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. ...
      Read More »

    • Reserve Tranche

      The proportion of the required quota of currency that each International Monetary Fund (IMF) member country must provide to the IMF, but can designate for its own use. The reserve ...
      Read More »

    • Monetary Reserve

      A nation's assets held in a foreign currency and/or commodities like gold and silver. Monetary reserves are used to back up the national currency and to provide a cushion for executing ...
      Read More »

    • Balance Of Trade - BOT

      The difference between a country's imports and its exports. Balance of trade is the largest component of a country's balance of payments. Debit items include imports, foreign aid, ...
      Read More »

    • Super Currency

      A supranational currency printed by the International Monetary Fund (IMF) that would be tied to a basket of reserve currencies. The concept of a global "super currency" has been ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions