Special Drawing Right
| Special Drawing Right | |
|---|---|
| Country: | IMF |
| Subdivision: | - |
| ISO 4217 code : | XDR |
| Abbreviation: | SDR, SDR |
|
Exchange rate : (August 24, 2020) |
1 EUR = 0.83347 XDR |
The Special Drawing Right ( SDR ; English Special Drawing Right, SDR ) is a 1969 by the International Monetary Fund introduced (IMF) reserve holdings, a claim for freely usable currencies of IMF members. However, contrary to popular opinion, it is neither a currency nor a claim on the IMF: "The SDR is neither a currency nor a claim on the IMF". These reserves are not traded on foreign exchange markets . They are kept in IMF accounts such as book loans . The exchange rate is also set by the IMF. SDR has the ISO-4217 code XDR.
history
Historically, gold as a traditional reserve medium had the advantage of being accepted means of payment in all countries. However, global gold production did not keep pace with the growth in international liquidity over time . Because of this, the US dollar and the British pound sterling became reserve currencies in the period after the Second World War . These are currencies that other countries can use in place of their own currency.
At the time, the US dollar seemed to be backed by the huge American gold reserves and to be a stable currency, especially since the USA promised to exchange foreign dollar stocks for gold at any time. The international amount of liquidity was increased accordingly by the expansion of book money in American and British currencies. Digging for gold in mines was still an option, but initially did not seem essential. This had the additional advantage for the US and UK that they could offset their balance of payments deficits by creating their own currency. Their central banks only had to print money and put it into circulation.
When it became foreseeable at the end of the 1950s that foreign dollar balances would exceed the American gold reserves, continental European states had to provide assistance to the dollar. A fundamental reform of the international monetary system was therefore considered in 1963. With the special drawing rights, a new form of credit was created that can be kept cashless in special IMF accounts . Whereas before the increase in the international amount of liquidity through national money creation was practiced in the USA and Great Britain, a new reserve credit was now available with the special drawing rights of the IMF, which was created by an internationally controlled institution, the IMF.
The international financial system was able to obtain additional liquidity in the form of the SDR . The Board of Governors of the IMF approved the new reserve medium on October 3, 1969.
origin of the name
Pull (English drawing ) referred to in the terminology of the IMF requesting foreign currency in exchange for its own currency. A state that needs US dollars to pay for its imports can receive US dollars from the IMF (“pull”) and pay for them with SDRs.
functionality
The exchange rate of the special drawing rights is based on a currency basket in which the most important international currencies (currently the US dollar, Japanese yen , euro , British pound, and since October 1, 2016 the Chinese renminbi ) are represented in a weighted manner.
If the IMF Board of Governors determines that there is a global need for additional liquidity, new SDRs will be allocated to the IMF participating countries. Each country has a credit towards the IMF with its allocated SDR. Confidence in the intrinsic value of the “test tube” SDR is secured by the fact that every participant in the SDR agreement undertakes to accept SDR up to twice the amount allocated to him and to make his own currency available for this. In this way, the SDRs are not deposited with gold, but with the currencies of several countries.
SDR balances are part of a country's currency reserves . Every country has the right to use SDRs to buy other currencies within certain limits. This is why SDRs can also be used as foreign exchange aid for individual countries that have got into difficulties.
Further use
In addition to being a currency reserve, special drawing rights are also used as a unit of account for:
- international liability claims
- Aviation (see Air Freight , Passenger Rights , Montreal Convention )
- shipping
- Oil spills at sea
- Land freight (see International Agreement on Contracts of Carriage on Roads and General German Forwarding Conditions )
- Settlement for payments in international postal traffic ( universal postal agreement )
- Calculation of the transit fees for the Suez Canal
- Swiss tender law; intercantonal agreement on public procurement; Appendix 1, Thresholds in the State Treaty Area, Contract Value SDR
Composition of the currency basket
As a measure of the amount in question and thus the weight of the single currency, the proportion of that used state or currency area in the global export and the reserves held in this currency of IMF members. Every five years, the relevant currencies and their weighting are redefined by the IMF Board of Directors and the new composition of the basket is calculated from this on the reporting date, assuming the same value. Before the introduction of the euro, the German mark and French franc were part of the basket.
The following table shows the weight ( initial new weight ) assigned to it at the beginning of a five-year period for each currency in the currency basket . An appreciation relative to the other currencies in the basket during the five-year period increases the weight of a currency, a depreciation causes it to fall. On the other hand, the weight changes due to changes in the currency's shares in world trade and currency reserves .
| USD | DEM | FRF | JPY | GBP | CNY | |
|---|---|---|---|---|---|---|
| 1981-1985 | 0.540 (42%) | 0.460 (19%) | 0.740 (13%) | 34.0 (13%) | 0.0710 (13%) | - |
| 1986-1990 | 0.452 (42%) | 0.527 (19%) | 1,020 (12%) | 33.4 (15%) | 0.0893 (12%) | - |
| 1991-1995 | 0.572 (40%) | 0.453 (21%) | 0.800 (11%) | 31.8 (17%) | 0.0812 (11%) | - |
| 1996-2000 | 0.582 (39%) | 0.446 (21%) | 0.813 (11%) | 27.2 (18%) | 0.1050 (11%) | - |
| EUR | ||||||
| 2001-2005 | 0.557 (45%) | 0.426 (29%) | 21.0 (15%) | 0.0984 (11%) | - | |
| 2006-2010 | 0.632 (44%) | 0.410 (34%) | 18.4 (11%) | 0.0903 (11%) | - | |
| 2011-2016 | 0.660 (41.9%) | 0.423 (37.4%) | 12.1 (9.4%) | 0.1110 (11.3%) | - | |
| from 10/2016 | 0.58252 (41.73%) | 0.38671 (30.93%) | 11,900 (8.33%) | 0.085946 (8.09%) | 1.0174 (10.92%) | |
From January 2011 to September 2016, an SDR contained the value of the sum of $ 0.66, EUR 0.423, £ 0.111, and Yen 12.1.
On November 30, 2015, the Executive Board of the IMF decided in principle to include the Chinese renminbi (yuan) for the first time with effect from October 1, 2016. The renminbi is given a weighting of 10.9%, the euro sinks to 30.9%, the pound to 8.1%, the US dollar to 41.7% and the yen to 8.3%. At the same time as the decision to add the Renminbi, the calculation formula for the weighting of the currencies in the basket was changed.
As of October 2016, an SDR contained the value of the sum of $ 0.58252, EUR 0.38671, £ 0.085946, yen 11,900, and yuan 1.0174.
Current value of the day
The current daily value of the SDR is determined and published by the IMF, based on the exchange rates of the currencies from which the SDR is formed. The quotation on the London Stock Exchange at 12 noon applies . If the London Stock Exchange is closed, the New York listing applies, and if this is also closed, the European Central Bank reference rate applies .
Practical significance as a reserve currency
Germany holds 68% of its foreign exchange reserves in gold, 20% in foreign currencies and 9%, corresponding to 15 billion euros, in special drawing rights (as of May 2015).
Web links
- IMF information sheet
- Transport Information Service: Special drawing rights with corresponding equivalent values in euros
- DGAP Annual Report 2013: New Power Currencies
Individual evidence
- ↑ IMF: Special Drawing Right (SDR) , March 24, 2020, accessed on July 20, 2020.
- ^ Walter Stock: The European Economic and Monetary Union, page 62. ISBN 3-428-02728-0 , accessed on October 2, 2009.
- ↑ ICAO: Convention of Comparison for damage caused by aircraft to third parties ( Memento of the original dated February 11, 2015 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF), Chapter II, Article 4 - Limit of the operator's liability; Retrieved November 11, 2009.
- ↑ IMO: Convention on Limitation of Liability for Maritime Claims (LLMC), 1976. (No longer available online.) Archived from the original on July 6, 2010 ; Retrieved November 9, 2009 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ IMO: International Convention on Civil Liability for Oil Pollution Damage (CLC), 1969. (No longer available online.) Archived from the original on July 7, 2009 ; Retrieved November 9, 2009 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ Suez Canal Authority: Rules of Navigation, Part IV, Chapter XIV, Art. 106 Determination of Payment of Suez Canal, Dues; Retrieved November 11, 2009.
- ↑ a b IMF: Composition of the SDR (English).
- ↑ IMF postpones the recalculation of the currency basket.
- ↑ IMF adopts Chinese yuan in currency basket - share 10.9%
- ↑ China's rise: IMF revalues yuan to the fifth world currency . In: Spiegel Online from November 30, 2015
- ↑ IMF adopts Chinese yuan in currency basket - share 10.9% , finanzmarktwelt.de, November 30, 2015
- ↑ Q and A on 2015 SDR Review , IMF, November 30, 2015
- ↑ IMF: Current equivalent of a special drawing right (in USD) (English).
- ↑ IMF: Current equivalent of a special drawing right (in other currencies) (English).
- ^ Bundesbank: Deutsche Bundesbank: Currency reserves and foreign currency liquidity of the Federal Republic of Germany. Reserve assets and other foreign currency assets, online, May 28, 2015.
