SDR currency basket
Q. Which of the following statements is/are correct about XDR/SDR?
1. Asian Development bank use it as a Unit of account
2. Chinese RMB is a part of SDR basket.- Published on 17 Nov 15a. Only 1
b. Only 2
c. Both
d. None
ANSWER: Only 2
- 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.
