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Special drawing rights

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Definition Edit

Special drawing rights (SDRs) is a type of international money created by the International Monetary Fund and allocated to its member nations. SDRs are an international reserve asset, although they are only accounting entries (not actual coin or paper, and not backed by precious metal).

Overview Edit

Subject to certain conditions of the IMF, a nation that has a balance of payments deficit can use SDRs to settle debts to another nation or to the IMF.

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