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What is special drawing rights(SDR's)?

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Question added by Wasif Mehmood
Date Posted: 2016/03/26
Nuridin Islam Diab
by Nuridin Islam Diab , Training Manager , Bbusinesss LLE

Special Drawings Rights (SDR's) are the currency prepared to be issued by the IMF (International Monetary Fund) in case the US dollar defaults or crashes as a substitute to world currency. It hasn't been used yet but it's what the IMF considers to be the safety net for the currency wars and in case the world comes to another great economic depression. Since most currencies are tied with the US dollar then they will all be affected in case the dollar crashes. Hence this the IMF's contingency plan. 

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