SDR:- Special Drawing Rights
The full form of SDR stands for Special Drawing Rights. The SDR is currency coded for XDR. The SDR was first introduced in the year 1969, the user is IMP. The XDR was further pegged with U. S. Dollar, Rupees, Chinese Yuan, Japanese Yen, and Pound Sterling. Namely gold and the U. S. Dollar were preferred foreign – exchange reserve assets to supplement a shortfall. The International Monetary Fund (IMP), maintained and maintained supplementary foreign – exchange reserve assets. The XDR is not a currency per se but is the unit of account for the IMP. The current role of the Special Drawing Rights was considered insignificant by the creator itself, IMF. Those developing countries that see the Special Drawing Rights as “a rather cheap line of credit” were the only users of the Special Drawing Rights. Even the developed countries that possess the greatest number of the Special Drawing Rights, have no solid purpose to use them.