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:
“Personal prudence, even when dictated by quite other than selfish considerations, surely is no special virtue in a military man; while an excessive love of glory, impassioning a less burning impulse, the honest sense of duty, is the first.”
—Herman Melville (1819–1891)
“These native villages are as unchanging as the woman in one of their stories. When she was called before a local justice he asked her age. “I have 45 years.” “But,” said the justice, “you were forty-five when you appeared before me two years ago.” “Señor Judge,” she replied proudly, drawing herself to her full height, “I am not of those who are one thing today and another tomorrow!””
—State of New Mexico, U.S. public relief program (1935-1943)
“Whilst the rights of all as persons are equal, in virtue of their access to reason, their rights in property are very unequal. One man owns his clothes, and another owns a country.”
—Ralph Waldo Emerson (1803–1882)