What is meant by SDR's?

Good question, I thank him. I hope everyone see it:

SDR is an international reserve asset introduced by the fund in 1969 to become an integral member countries for official assets. The value is determined now by a basket of four major currencies, the basket will be expanded to include the Chinese yuan as the currency of a fifth starting from October 12016 and can be of any of the currencies freely use SDR swap. As of November 30, 2015, has been increased and special drawing rights increased by 204.1 billion units were distributed to the member countries (which is equivalent to approximately US $ 285 billion).

The SDR was created by the IMF in 1969 as a supplementary international reserve asset, in the context of the Bretton Woods fixed exchange rate system. A country participating in this system needed official reserves—government or central bank holdings of gold and widely accepted foreign currencies—that could be used to purchase the domestic currency in foreign exchange markets, as required to maintain its exchange rate. But the international supply of two key reserve assets—gold and the U.S. dollar—proved inadequate for supporting the expansion of world trade and financial flows that was taking place. Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF.

Only a few years after the creation of the SDR, the Bretton Woods system collapsed and the major currencies shifted to floating exchange rate regimes. Subsequently, the growth in international capital markets facilitated borrowing by creditworthy governments and many countries accumulated significant amounts of international reserves. These developments lessened the reliance on the SDR as a global reserve asset. However, more recently, the 2009 SDR allocations totaling SDR 182.6 billion played a critical role in providing liquidity to the global economic system and supplementing member countries’ official reserves amid the global financial crisis. The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR serves as the unit of account of the IMF and some other international organizations.

acronymfinder.com gives 106 definitions of SDR so some context would be helpful.

However, the field is given as Economics which means that the most likely answer is Special Drawing Rights.  Interestingly is the top answer provided by Google to the search 'define SDR'.   Special Drawing Rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF), according to Wikipedia.

Its like Debit Restructuring for the corporate which is in loss with huge debits.... Thanks.

Hi ,

The Special Drawing Rights are a virtual asset created by the IMF to help its members trading on the international markets.

Each country member of the IMF has the right to a certain amounts of SDR and the value is determined by the average value of a basket of currencies.

It works like this :

-Country A doesn't have the liquidity (usually US dollars) to trade in the international markets ( to finance infrastructure development let's say).

-The IMF allocate a certain amount of SDR to the country based on its stake in the IMF.

-The country  may "spend" its SDR on the market either by trading them directly or by converting them into another currency.

Countries are willing to accept SDR as payments becuase they earn interest.

It's really the basic version but I hope it's helpful

I agree with Mr George Answer , regards

Agree with the expert answers!!

Thanks for the invite ............................ Leave an answer to the experts

Special drawing rights (SDR) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a supplement to the existing reserves of member countries. Created in response to concerns about the limitations of gold and dollars as the sole means of settling international accounts, SDRs augment international liquidity by supplementing the standard reserve currencies.An SDR is essentially an artificial currency used by the IMF and is basket of national currencies. The IMF uses SDRs for internal accounting purposes. SDRs are allocated by the IMF to its member countries and are backed by the full faith and credit of the member countries' governments.

Thanks for the invitation, I agree with Mr jeorgei answers. ....

Thanks for the invite Wasif. It is indeed a new learning and thanks to the valuable information shared by the experts.