PSL Quarterly Review (Jan 2014)
A central position for the special drawing right in the monetary system
Abstract
The amended articles of the IMF stipulate that member countries must cooperate with the IMF and among themselves to make the special drawing right (SDR) the principle reserve instrument of the international monetary system. The present paper discusses some of the issues which will have to be analysed in this framework. It deals first with the role of the SDR after the important changes which have taken place in the international monetary system. It then stresses the present weaknesses of the SDR and goes on to make suggestions as to how they could be dealt with. JEL: F33, E42
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