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:
“We agree fully that the mother and unborn child demand special consideration. But so does the soldier and the man maimed in industry. Industrial conditions that are suitable for a stalwart, young, unmarried woman are certainly not equally suitable to the pregnant woman or the mother of young children. Yet “welfare” laws apply to all women alike. Such blanket legislation is as absurd as fixing industrial conditions for men on a basis of their all being wounded soldiers would be.”
—National Woman’s Party, quoted in Everyone Was Brave. As, ch. 8, by William L. O’Neill (1969)
“Wild as it was, it was hard for me to get rid of the associations of the settlements. Any steady and monotonous sound, to which I did not distinctly attend, passed for a sound of human industry.... Our minds anywhere, when left to themselves, are always thus busily drawing conclusions from false premises.”
—Henry David Thoreau (1817–1862)
“Unless democracy is to commit suicide by consenting to its own destruction, it will have to find some formidable answer to those who come to it saying: “I demand from you in the name of your principles the rights which I shall deny to you later in the name of my principles.””
—Walter Lippmann (1889–1974)