Special drawing rights

1 EUR = 0.90121 XDR 1 XDR = 1.1096 EUR 1 CHF = 0.73858 XDR 1 XDR = 1.354 CHF

The Special Drawing Right ( SDR Special Drawing Right English SDR) is an artificial, in 1969 by the International Monetary Fund ( IMF) introduced currency unit that is not traded on the foreign exchange markets. SDR has the ISO 4217 code XDR.

History

In the early 1960s, voices were raised, feared the liquidity shortage due to an unequal growth of trade and the reserve currency the U.S. dollar. With the introduction of SDR additional liquidity for the international financial system was created. The Board of Governors of the IMF decided the new reserve asset on 3 October 1969.

End of March 2009 called on the People's Republic of China and Russia to expand the role of the Special Drawing Rights and to establish the SDRs as a " supra-national reserve currency ".

Operation

If the Board of Governors of the IMF finds that there is a worldwide need for additional liquidity, SDRs are allocated to member countries. Each country has its allocated SDRs a credit to the IMF, with which it can pay off its debt to creditor countries. The member countries are obliged to accept payments by SDRs.

SDRs are a part of the foreign exchange reserves of a country. So every country has the right to buy against issuing SDRs within limits other currencies. The SDR thus serve as foreign exchange assistance to individual countries in difficulty.

Further use

Except as reserve currency, see Special Drawing Rights as a unit also used in:

• International liability claims Aviation (see air cargo, air passenger rights, the Montreal Convention)
• Shipping
• Oil spills at sea
• Land freight ( see International Covenant on transport contracts on roads)

Basket of currencies

The exchange rate of a Special Drawing Right as defined by a currency basket of major world currencies.

As a measure for the amount in question, and thus the weight of the single currency, the share of the State concerned or currency area in world exports and held in this currency reserves of IMF members serve. Every five years, to be redefined by the IMF Executive Board and calculates the new composition of the basket with the same value at the date the relevant currencies and their weighting. Before the introduction of the euro German mark and French franc were part of the basket.

The following table gives for each currency in the basket of currencies that you assigned at the beginning of a five-year period weight ( "initial new weight" ) on. An appreciation relative to the other currencies in the basket during the five-year period, the weight can a currency rise, a devaluation drop it. On the other hand, the weight changed by changing proportions of the currency world trade and currency reserves.

Since January 2011, a SDR contains the value of the sum of 0.66 U.S. dollars, 0,423 euros, 0,111 pounds sterling and 12.1 yen.

Days Current Value

The daily value of the SDR is determined by the IMF and published, based on the exchange rates of the currencies making up the SDR forms. It is the price on the London Stock Exchange by 12 clock. If the stock market is closed in London, the listing is valid in New York, and this should also be closed, the reference rate of the European Central Bank applies.