Special drawing rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged. As they can only be exchanged for euros, Japanese yen, pounds sterling, or US dollars, SDRs may actually represent a potential claim on IMF member countries' nongold foreign exchange reserve assets, which are usually held in those currencies. While they may appear to have a far more important part to play, or, perhaps, an important future role, being the unit of account for the IMF has long been the main function of the SDR.
Created in 1969 to supplement a shortfall of preferred foreign exchange reserve assets, namely gold and the US dollar, the value of a SDR is defined by a weighted currency basket of four major currencies: the US dollar, the euro, the British pound, and the Japanese yen. SDRs are denoted with the ISO 4217 currency code XDR.
SDRs are allocated to countries by the IMF. Private parties do not hold or use them. As of March 2011, the amount of SDRs in existence is around XDR 238.3 billion, but this figure is expected to rise to XDR 476.8 billion by 2013.
Famous quotes containing the words special, drawing and/or rights:
“The books may say that nine-month-olds crawl, say their first words, and are afraid of strangers. Your exuberantly concrete and special nine-month-old hasn’t read them. She may be walking already, not saying a word and smiling gleefully at every stranger she sees. . . . You can support her best by helping her learn what she’s trying to learn, not what the books say a typical child ought to be learning.”
—Amy Laura Dombro (20th century)
“My Christian friends, in bonds of love, whose hearts in sweetest union join,
Your friendship’s like a drawing band, yet we must take the parting hand.
Your company’s sweet, your union dear; Your words delightful to my ear,
Yet when I see that we must part, You draw like cords around my heart.”
—John Blain (18th century)
“This is no war for domination or imperial aggrandisement or material gain.... It is a war ... to establish, on impregnable rocks, the rights of the individual and it is a war to establish and revive the stature of man.”
—Winston Churchill (1874–1965)