What are special drawing rights? The IMF's basket of five currencies
By SendPay Business · · 2 min read
Special drawing rights, or SDRs, are an international reserve asset created by the International Monetary Fund in 1969. An SDR isn't a currency you can spend in a shop. It is a claim that IMF member countries can swap for the currencies they need.
What's in the basket
- US dollar
- Euro
- Chinese renminbi, added in 2016
- Japanese yen
- British pound
How its value is set
The value of one SDR is worked out daily from the exchange rates of those five currencies, each with a set weight. The IMF reviews the basket, usually every five years.
How countries use it
The IMF hands out SDRs to member countries in proportion to their shares in the fund. A country short of foreign currency can swap its SDRs with another member for dollars or euros. Some organisations also use the SDR as a unit of account for fees and limits.
Where SendPay fits
SendPay platforms let customers hold GBP, EUR and USD and exchange between them at a fee the platform owner sets, powered by licensed partners. SendPay doesn't offer trading.
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Build my platform →Questions people ask
What is one SDR worth today?
Work it out from today's rates with the free calculator.
SDR calculator →What is a reserve currency?
A currency central banks hold in large amounts, like the US dollar.
Reserve currencies →What is a currency peg?
When a country fixes its currency's value against another currency.
Currency pegs →What is dollarisation?
When a country uses another nation's currency, usually the US dollar.
Dollarisation →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.