Special Drawing Rights

About Special Drawing Rights

Special Drawing Rights were created by the IMF in 1969 as an international reserve asset. SDRs are not a currency but a potential claim on the currencies of IMF members. The SDR basket includes the US dollar, euro, Chinese renminbi, Japanese yen, and British pound. SDRs were created to supplement liquidity in the Bretton Woods system. After the end of Bretton Woods in 1971, SDRs became less important but remained as a unit of account for the IMF. In 2021, the IMF allocated 650 billion in SDRs to help countries cope with COVID 19. The SDR remains a symbol of international monetary cooperation, though some, including China, have pushed for a larger role.