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What is Special Drawing Rights? The SDR is an international | Indian Economy -Civil Service Gurukul

What is Special Drawing Rights?

The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.

The SDR is not a currency.

It is a potential claim on the freely usable currencies of IMF members.

As such, SDRs can provide a country with liquidity.

A basket of currencies defines the SDR: the US dollar, Euro, Chinese Yuan, Japanese Yen, and the British Pound.

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