> Special Drawing Rights (SDRs) are international foreign exchange reserve assets. Allocated to nations by the International Monetary Fund (IMF), a SDR represents a claim to foreign currencies for which it may be exchanged in times of need. Today, the US Dollar is the world’s primary foreign exchange reserve asset, and SDRs may be little used. Some nations, notably China and Russia (as well as the UN), favor increasing the substance and function of the SDR. Although denominated in US dollars, the nominal value of an SDR is derived from a basket of currencies; specifically, a fixed amount of Japanese Yen, US Dollars, British Pounds and Euros. During its creation, … Continue reading >ExchangeRate.com