Special drawing rights

Discuss how the special drawing rights (SDR) are formed. And also, explain the circumstances due to which SDR was created.

E

Expert

Verified

SDR was produced by IMF in the year 1970 as new reserve asset, partly in order to alleviate load over the U.S. dollar as key reserve currency. SDR is the basket currency including five major currencies, i.e., German mark, U.S. dollar, French franc, Japanese yen, and British pound. Presently, the dollar receives a 40% weight, yen 17%, mark 21% and franc 11%, and pound 11%. Weights for several currencies tend to vary over the time, reflecting the relative importance of each and every currency in the international trade and finance.

   Related Questions in Financial Accounting

  • Q : Finalization of Accounts What does the

    What does the term Finalization of Accounts mean?

  • Q : Sale return or return inward Describe

    Describe Sale return or return inward in brief.

  • Q : Type of bond instrument You are an

    You are an investment banker who is advising a Euro bank about the new international bond offer it is considering.  Proceeds are to be used to fund Eurodollar loans to the bank clients.  Specify the type of bond instrument you would recommend that bank shoul

  • Q : Drawback of Electronic Funds Transfer

    What are the drawback of Electronic Funds Transfer?

  • Q : Introduction of the term Financial

    Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?

  • Q : State Return on Investment or ROI

    Return on Investment (ROI): It is a performance measure employed to calculate the efficiency of an investment or to compare the effectiveness of a number of various investments. To compute ROI, the advantage (return) of an investment is divided by the

  • Q : Historical Cost of Fixed Assets What

    What are the Historical Cost of Fixed Assets?

  • Q : Role Strain and Role Conflict Define

    Define role strain and role conflict, and provide illustrations of each.

  • Q : Monetary/nonmonetary and temporal method

    Discuss dissimilarity in translation process between monetary/nonmonetary and temporal method.

  • Q : What is Asset Disposition Asset

    Asset Disposition: Getting rid of the asset or security via a direct sale or some other technique. Quite frequently you will observe insider trades report a "disposition" of some number of shares; this merely means that they sold them.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1426735 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1924645
    Asked

    3,689

    Active Tutors

    1426735

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.