Special Drawing Rights - SDR

AAA

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 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 TERMS
  1. Balance Of Payments (BOP)

    A record of all transactions made between one particular country ...
  2. Super Currency

    A supranational currency printed by the International Monetary ...
  3. Balance Of Trade - BOT

    The difference between a country's imports and its exports. Balance ...
  4. Reserve Tranche

    The proportion of the required quota of currency that each International ...
  5. Monetary Reserve

    A nation's assets held in a foreign currency and/or commodities ...
  6. World Trade Organization - WTO

    An international organization dealing with the global rules of ...
Related Articles
  1. What Is International Trade?
    Personal Finance

    What Is International Trade?

  2. An Introduction To The International ...
    Fundamental Analysis

    An Introduction To The International ...

  3. What Is The Bank For International Settlements?
    Personal Finance

    What Is The Bank For International Settlements?

  4. Material Adverse Effect A Warning Sign ...
    Markets

    Material Adverse Effect A Warning Sign ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center