Definition of special drawing rights SDRs

Special drawing right; a unit of money created by the IMF. Each member country can borrow SDRs at favourable interest rates from the IMF's reserves when they are needed for reasons related to a country's balance of payments (payments between countries related to trade etc). [1]

Monetary unit established by the International Monetary Fund (IMF) as an additional international reserve asset and allocated to governments in proportion to their IMF funding quotas. The value of an SDR is determined by a weighted basket of major currencies.  [2]

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