Eurozone Crisis & IMF Aid
Independent Films, Politics
The International Monetary Fund employs SDRs, "Special Drawing Rights," as methodology to both assist nations seeking loans and as means to manage the influence of member states and their interest in the IMF's balance sheet. As potential further IMF aid or "Bailouts" are sought by Eurozone member states feeling sharp contraction, how may the SDRs be utilized and how will they affect decision making. Even before those questions are answered what are SDRs.
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 member countries—such as the U.S. dollar, Japanese yen, or euro. This means that member countries can exchange their SDRs for these, or other, currencies, which can then be used to pay debts or acquire other assets.
The Special Drawing Right, or SDR, is an international reserve asset created by the IMF to supplement official reserves of member countries. Once added to countries' official reserves, SDRs can be exchanged for usable currencies like the US dollar.
Year of Production: 2012
Country: United Nations
Eurozone Crisis & IMF Aid by DiplomaticallyIncorrect is licensed under a Creative Commons Attribution Share Alike 3.0 License.
- Muhamed Sacirbey (UNTV-IMF)
- Susan Sacirbey (UNTV-IMF)