SDR = Special Drawing Rights

Special Drawing Rights is an international reserve asset created by the International Monetary Fund (IMF).

Not a Currency: SDRs are not a currency but a claim on freely usable currencies.

The value of SDR is determined based on a basket of major international currencies (USD, EUR, CNY, JPY, GBY).

- SDRs can be exchanged for freely usable currencies between IMF member countries.
- SDRs help countries with foreign exchange shortages.
- SDRs are used as an international unit of account by organizations like the IMF and the World Bank.