The mechanics of alternative valuations of the special drawing right

Abstract

On June 13th, 1974 the International Monetary Fund introduced a new method of valuation of the Special Drawing Right (SDR) in transactions against currencies. The present article considers the features of the method of valuation of the SDR currently in force and the features of possible alternatives to be adopted in the future. The author gives a systematic analytical exposition of various methods of valuation of a Special Drawing Right, exhibits some attributes of various types of SDRs associated with a particular technique of valuation, and points out some of the consequences to which these attributes may lead. JEL: E42, F33

Keywords

• IMF
• SDR
• special drawing right