Encyclopedia > Special Drawing Rights

  Article Content

Special Drawing Rights

Special Drawing Rights are an artificial currency unit that was created by the International Monetary Fund in 1969.

SDRs are defined in terms of a basket of major currencies used in international trade and finance. At present, the currencies in the basket are the Euro, the Pound sterling, the Japanese yen and the United States dollar. The amounts of each currency making up one SDR are chosen in accordance with the relative importance of the currency in international trade and finance. The determination of the currencies in the SDR and their amounts is made by the IMF Executive Board from time to time.

The value of one SDR in terms of United States dollars is determined daily by the IMF, based on the exchange rates of the currencies making up the basket, as quoted at noon at the London market. (If the London market is closed, New York market rates are used; if both markets are closed, European Central Bank reference rates are used.)

SDRs are used as a unit of account by the IMF and several other international organizations. A few countries peg their currencies against SDRs, and it is also used to denominate some private international financial instruments.

SDRs have the ISO 4217 currency code XDR.

The latest value of the SDR in terms of the US dollar is available from the IMF (http://www.imf.org/external/np/tre/sdr/basket.htm), updated daily.



All Wikipedia text is available under the terms of the GNU Free Documentation License

 
  Search Encyclopedia

Search over one million articles, find something about almost anything!
 
 
  
  Featured Article
East Hampton North, New York

... had a total population of 3,587. Geography East Hampton North is located at 40°58'16" North, 72°11'20" West (40.971060, -72.188759)1. According to the United ...

 
 
 
This page was created in 55.6 ms