Answer the question in maximum 10 words. This question carries 03 marks. [MPPSC 2020]
What do you understand by ‘Special Drawing Rights’ of International Monetary Fund?
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The Special Drawing Right (SDR) is an interest-bearing international reserve asset created by the IMF in 1969 to supplement other reserve assets of member countries. The SDR is based on a basket of international currencies comprising the U.S. dollar, Japanese yen, euro, pound sterling and Chinese Renminbi.
Special Drawing Rights (SDR) – IMF
What is SDR?
The Special Drawing Rights (SDR) is an international reserve asset created by the International Monetary Fund (IMF) to supplement member countries’ reserves.
Key Features
Purpose
Helps countries stabilize reserves and aids in global financial cooperation.