special drawing rights
Học thuậtThân thiện
Definition
Noun: 1. A type of international reserve asset: Special Drawing Rights (SDR) are an international reserve asset created by the International Monetary Fund (IMF) to supplement the official reserves of its member countries. 2. A unit of account: The SDR serves as the IMF's unit of account and is not a currency, nor a claim on the IMF itself, but rather a potential claim on the freely usable currencies of IMF member countries.
Usage
- Special Drawing Rights are allocated to member countries by the IMF and can be exchanged among governments for freely usable currencies to settle international obligations.
- The value of an SDR is based on a basket of major international currencies: the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.
Examples
- Noun:
- The IMF approved a general allocation of Special Drawing Rights to boost global liquidity during the economic crisis.
- The country's foreign reserves are reported in terms of US dollars and Special Drawing Rights.
- The value of the Special Drawing Right is calculated daily based on the currency basket.
Advanced Usage
- "SDR allocation": The process by which the IMF issues new SDRs to its member countries in proportion to their IMF quotas.
- The new SDR allocation provided crucial reserve assets to many developing economies.
- "SDR-denominated": Used to describe financial instruments or obligations whose value is tied to the SDR.
- The bond was issued as an SDR-denominated instrument to hedge against currency volatility.
Variants and Related Words
- SDR (n): The common acronym for Special Drawing Rights.
- The latest financial report shows an increase in SDR holdings.
- Reserve asset (n): An external asset that is readily available to and controlled by a country's monetary authorities for financing payment imbalances. SDRs are one type of reserve asset.
- Basket of currencies (n): A selected group of currencies whose weighted average is used to define the value of another unit, such as the SDR.
Synonyms
- International reserve asset: A broader term for assets held by central banks, which includes SDRs, foreign currency reserves, and gold.
- IMF reserve asset: A more specific synonym highlighting the creating institution.
Related Terms and Concepts
- IMF Quota: A member country's financial commitment to the IMF, which determines its voting power and its share of SDR allocations.
- Freely Usable Currency: A currency that is widely used to make payments for international transactions and is widely traded in the principal exchange markets. SDRs can be exchanged for these currencies.
Noun
- 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