Category: World Current Affairs | Last updated: 2026-09-18

What are Special Drawing Rights (SDRs) in the context of the International Monetary Fund (IMF)?

A) A special category of long-term development loans offered by the IMF.
B) An international reserve asset created by the IMF, whose value is based on a basket of leading currencies.
C) A mechanism for countries to settle trade disputes outside the WTO framework.
D) A type of bond issued by the IMF to fund infrastructure projects.

Explanation

SDRs are an international reserve asset created by the IMF to supplement its member countries' official reserves. Their value is derived from a basket of five major currencies: the US dollar, euro, Chinese renminbi, Japanese yen, and pound sterling.

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