Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

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YESPYQ · Accepted Answer

Correct answer: Renminbi. Special Drawing Right (SDR) The SDR is an interna- tional reserve asset used by the IMF and other organizations as a unit of account. It is not a currency, but its value is based on a basket of five currencies—the US dollar, Euro, Chinese renminbi (added in 2016), Japanese yen, and British pound sterling. Key Features  SDR value is calculated daily based on market exchange rates.  The IMF reviews and adjusts the SDR basket every five years.  IMF quotas (member contributions) and voting power are denominated in SDRs.  SDR allocations to members are proportional to their IMF quotas.  India’s SDR Quota in IMF  2016 reforms increased India’s voting share from 2.3% to 2.6%, while China’s rose from 3.8% to 6%.  Currently, India holds 2.75% of the SDR quota and 2.63% of IMF votes.  India’s foreign exchange reserves include SDRs, gold reserves, foreign currency assets, and IMF’s Reserve Tranche. 129

Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

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