According to IMF (2016), the Special Drawing Rights (SDR) is an international reserve asset created in 1969 by the IMF. Its aim was to supplement member nation’s official reserves. In the beginning, the SDR operated in the context of the Bretton Woods fixed exchange rate system. In this regards, countries that participated in the system needed to hold their national reserve either by the central bank or government in the form of gold or any other broadly acceptable foreign currency. The currency or gold was used to purchase the country's domestic currency in the foreign exchange market to ...
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