special drawing rights Synonyms
No Synonyms and anytonyms found
special drawing rights Meaning
special drawing rights (n)
reserve assets in the International Monetary Fund; designed to supplement reserves of gold and convertible currencies used to maintain stability in the foreign exchange market
special drawing rights Sentence Examples
- Special Drawing Rights (SDRs) are an international monetary reserve asset created by the International Monetary Fund (IMF).
- SDRs are allocated to IMF member countries based on their IMF quota shares.
- Countries can use SDRs to supplement their foreign exchange reserves or to make payments to other IMF member countries.
- SDRs can be exchanged for other currencies or for gold.
- The value of the SDR is determined by a weighted average of the currency exchange rates of a basket of five major currencies.
- SDRs are not a currency and cannot be used to make direct payments to individuals or businesses.
- However, SDRs can be used to purchase goods and services from countries that accept them as payment.
- SDRs are a valuable reserve asset because they are highly liquid and widely accepted.
- SDRs also play a role in the IMF's lending operations, as they can be used to repay IMF loans.
- The IMF has authorized the issuance of SDRs on several occasions, most recently in response to the COVID-19 pandemic.
FAQs About the word special drawing rights
reserve assets in the International Monetary Fund; designed to supplement reserves of gold and convertible currencies used to maintain stability in the foreign
No synonyms found.
No antonyms found.
Special Drawing Rights (SDRs) are an international monetary reserve asset created by the International Monetary Fund (IMF).
SDRs are allocated to IMF member countries based on their IMF quota shares.
Countries can use SDRs to supplement their foreign exchange reserves or to make payments to other IMF member countries.
SDRs can be exchanged for other currencies or for gold.
