| Special Drawing Rights are an artificial currency unit that was created
by the International Monetary Fund in
1969.
SDRs are defined in terms of a basket of major currencies used in international trade and finance. At present, the currencies
in the basket are the euro, the pound
sterling, the Japanese yen and the United States dollar. The amounts of each currency making up one SDR are chosen in accordance with the
relative importance of the currency in international trade and finance. The determination of the currencies in the SDR and their
amounts is made by the IMF Executive Board from time to time.
The value of one SDR in terms of United States dollars is determined daily by the IMF, based on the exchange rates of the currencies making up the basket, as quoted at noon at the
London market. (If the London market is closed, New York market rates are used; if both markets are closed, European Central Bank reference rates are used.)
SDRs are used as a unit of account by the IMF and several other international organizations. A few countries peg their
currencies against SDRs, and it is also used to denominate some private international financial instruments.
SDRs have the ISO 4217 currency code XDR.
The latest value of the SDR in terms of the US dollar is available from the IMF (http://www.imf.org/external/np/tre/sdr/basket.htm), updated daily.
External links
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