Daily Archive: Friday, May 7, 2010

IMF fact sheet on SDRs

FACTSHEET Special Drawing Rights (SDRs) January 31, 2010 The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies. With a general ...Read More

corrected post on IMF operations

I now understand it this way: The IMF creates and allocates new SDR’s to its members. There is no other source of SDR’s. SDR’s exist only in accounts on the IMF’s books. SDR’s have value only because there is an informal agreement between members that they will use their own currency to ...Read More