Special Drawing Rights
The International Monetary Fund (IMF) created the Special Drawing Rights (SDR) in 1969 as an international reserve for supplementing its member statesÂ’ official reserves. The value of the SDR is based on a basket of five currencies Â– the US dollar, the Euro, the Chinese renminbi, the Japanese Yen and the British pound sterling. The SDR is neither a currency nor a claim on the IMF. It can be exchanged for receiving currencies of IMF members.
The IMF has made an allocation of 12.57 billion SDRs on August 23 for India. The fresh allocation to the RBI follows the recent G20 decision to increase IMFÂ’s lending capacity by $650 billion to combat the pandemic-led economic crisis.