What does Special Drawing Right (SDR) mean?
Special Drawing Right is an international reserve asset created by IMF to supplement existing reserves. It is valued on the basis of a basket of four currencies i.e. Sterling Pound, Euro, Japanese Yen and US Dollar and can be used in a wide variety of transactions and operatins among official holders. SDR was endorsed as a supplemental reserve asset from 1967 backed by the full faith and credit of participating nations that is universally accepted as a supplement to gold and dollars and could be issued in quantities sufficient to ensure adequate growth of total monetary reserves.
