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SDR currency refers to the special drawing right (SDR), also known as "paper gold", which was first issued in 1969. It is a Book Asset distributed by the International Monetary Fund (IMF) according to the shares subscribed by Member States, which can be used to repay the IMF debt and make up the balance of payments deficit between member governments
its value is currently determined by a basket of reserve currencies composed of US dollar, euro, RMB, Japanese yen and British pound. When a member state has a balance of payments deficit, it can exchange foreign exchange with other Member States designated by IMF to repay the balance of payments deficit or IMF loans. It can also act as an international reserve like gold and freely convertible currency
because it is a supplement to the original ordinary drawing right of the International Monetary Fund, it is called special drawing right
at the time of initial issue, each unit was equal to 0.888 grams of gold, equivalent to the US dollar at that time. Special drawing rights are issued to supplement gold and freely convertible currencies to maintain the stability of the foreign exchange market
on November 30, 2015, the International Monetary Fund officially announced that RMB will join the SDR on October 1, 2016
on October 1, 2016, the value of SDR is determined by the current exchange rate of a basket of currencies composed of US dollar, euro, RMB, Japanese yen and British pound, with the weights of 41.73%, 30.93%, 10.92%, 8.33% and 8.09% respectively
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according to the provisions of the fund agreement and IMF resolutions, SDR can be used for the following purposes at present:
1. According to the provisions of Article 19 (3) of the fund agreement, the participating countries, based on the needs of balance of payments or reserve status, It may apply to the IMF to arrange for the exchange of foreign exchange freely available to other participating countries under the special drawing rights account
After receiving the application, IMF can coordinate the designation of certain participating countries (good balance of payments situation and strong international reserve status) as the objects of accepting SDRs, and exchange with the applicant countries within a specified period of timethere is no proportion limit on the exchange rate of the applicant country, and all the SDRs held by the applicant country can be converted into freely usable foreign exchange
According to paragraph 2 (b) of Article 19 of the fund agreement, a participating country can also convert SDR into other equivalent currencies (including non freely usable foreign exchange) by reaching an agreement with other participating countries without the approval of the fund, It is also not necessary to follow the relevant rules and principles of the Fund (including the restrictions on the "need" for foreign exchange conversion) However, such transactions are subject to the principle of not violating Article 22 of the fund agreement (changing the international reserve structure) According to paragraph 2 of Article 17 of the fund agreement, a participating country may apply to transfer its special drawing rights held under the special drawing rights account to the general resource account to make up for the debt formed by its reserves under the general resource account less than 25% of its quota, Or for the repayment of other debts owed to the Fund (such as those owed under Article 5, paragraph 6, of the fund agreement)after receiving the application from the applicant country, the SDR Department of the fund actually needs to convert the SDR into the required currency from other participating countries and transfer it into the general reference account of the applicant country. Therefore, the fund must obtain the consent of the relevant exchange country in this process
According to the current resolution of IMF, SDR represents the value of five freely used currencies (called "SDR basket") according to the adjustable proportion, and its currency value is relatively stable and can be used as the unit of currency valuation According to Article 30 of the fund agreement, SDRs can also be used for other related financial business between fund member countries and non member countries as long as they are approved by IMF From the existing resolutions and current practice of IMF, SDR has been used for forward trade payments, specific loans, international financial settlement, international financial business margin, fund interest and dividend payments, grants and so on between member and non member countries Finally, as a relatively stable international reserve asset and a monetary unit of fixed value, the fund can change the pricing method and principle of SDR at any time under the authorization of Article 15 (2) of the fund agreement The SDR was directly linked to gold when it was founded (ISDR value is 0.888671g gold), and was linked to the currencies of 16 countries after the second amendment of the fund agreementaccording to resolutions 6631 and 6708 adopted by the Executive Board of the fund in 1980, the SDR basket will be composed of the currencies of the five member countries of the fund with the highest international export trade and service trade volume from January 1, 1986, and will be adjusted every five years thereafter. The currencies of the five member countries are defined as freely usable currencies
according to the SDR basket, which came into effect on January 1, 1986, the SDR set represents the value of the currencies of the five countries, namely US dollar, mark, franc, Japanese yen and pound sterling< br />
at the time of initial issue, each unit was equal to 0.888 grams of gold, equivalent to the US dollar at that time. Special drawing rights are issued to supplement gold and freely convertible currencies to maintain the stability of the foreign exchange market
on November 30, 2015, the International Monetary Fund officially announced that RMB will join SDR on October 1, 2016
on October 1, 2016, the value of SDR was determined by the current exchange rate of a basket of currencies composed of US dollar, euro, RMB, Japanese yen and British pound, with the weights of 41.73%, 30.93%, 10.92%, 8.33% and 8.09% respectively.
according to the current exchange rate of SDR, 1 US dollar = 0.728775sdr, that is to say, 1sdr equals 1.372170 US dollars
SDR is an international reserve asset created by IMF in 1969 to supplement the official reserves of Member States. The value of SDRs is currently based on a basket of four major currencies (US dollar, euro, Japanese yen and British pound). After the new currency basket comes into effect on October 1, 2016, the basket will be expanded, and China's RMB will join the basket as the fifth currency
the fund usually allocates SDRs to member states based on their share in the fund. So far, a total of 204.1 billion SDRs have been allocated. The most recent allocation was in 2009, with an allocation of 182.6 billion SDRs
SDR is not a currency, nor a claim on IMF, but a potential claim on the freely available currency of IMF member states. SDR holders can exchange their SDRs for these currencies in two ways: one is through the voluntary exchange arrangement between member states; the other is through the voluntary exchange arrangement between Member States; Second, IMF designates strong external member states to purchase SDRs from weak external member states
in addition to being a supplementary reserve asset, SDR is also the unit of account of IMF and other international organizations. SDRs are also used in the fund's financing arrangements with Member States
according to the IMF's official answer, SDR is not a currency or a creditor's right to the IMF, but a potential claim for the free use of currency of IMF member states. However, SDR holders can exchange their SDR holdings for these currencies in two ways: moreover, SDR is the unit of account of IMF and other international organizations. SDRs are also used in the fund's financing arrangements with Member States. This is equivalent to that SDR is a kind of currency or hard currency like gold to some extent, so it has a certain exchange rate.