Special drawing right


Question:

The Asian Development Bank (ADB), owned by its 67 members whose primary goal is poverty reduction, makes its loans to SDR own a multilateral development bank. As of September 2010, these loans totaled $44.3 billion, with the largest borrowers being China, Indonesia, India, Pakistan, and the Phillipines. The ADb covers the exposure of its capital resources, $114.8 billion, by selling into the forward market the currencies that make up the SDR basket. Why would the ADB hold SDR instead of dollars or euro? What are the currency amounts that make up the SDR? To learn more about the SDR basket, visit

https://imf.org/external/np/fin/data/rms_sdrv.aspc

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