SDR: Basket currencies
Q. Which of the following currency/currencies is/are part of Special drawing rights (XDR or SDR)?
1. Japanese yen
2. Russian Ruble
3. Chinese Yuan
4. Euro
5. Pounds sterling- Published on 16 Nov 15a. 1,4,5
b. 1,2,4,5
c. 4 and 5
d. All
ANSWER: 1,4,5
- Special drawing rights (XDR or SDR) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF).
- Their value is based on a basket of key international currencies reviewed by IMF every five years.
- Based on the latest review conducted on December 30, 2010, the XDR basket consists of the following four currencies: U.S. dollars ($), euro (€), pounds sterling (£), and Japanese yen (¥): 9.4 percent (compared with 11 percent at the 2005 review).
- The weights assigned to each currency in the XDR basket are adjusted to take into account their current prominence in terms of international trade and national foreign exchange reserves.
