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special drawing right

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special drawing right

Form of international money, created for use by the International Monetary Fund and its member governments. Originally, the SDR was linked to gold and the US dollar, but it is now defined as a weighted average of various convertible currencies. SDRs are used to help countries with balance of payment problems.



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The Board of Governors of the Fund has ratified a general allocation of Special Drawing Rights to provide liquidity support to the global economic system by supplementing the foreign exchange reserves of member countries, including Jamaica.
Aa It added that the funding took place through the allocation of Special Drawing Rights (SDR) to IMF members that are participants in the SDRs Department in proportion to their existing quotas in the fund, which are based broadly on their relative size in the global economy.
The increase was largely attributed to a rise in its holdings of special drawing rights at the International Monetary Fund (IMF) and valuation gains in the government's holdings of the US Treasuries, the ministry said.
 
 
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