What is SDR currency?

In the shadow of the COVID-19 pandemic, SDR emerged as a critical financial tool, gaining prominence for its role in assisting countries, particularly those facing sanctions, by facilitating essential monetary support across various platforms.

The Special Drawing Right (SDR) functions as an international currency managed by the International Monetary Fund (IMF).

But what exactly is the nature of this international currency, and what are its governing rules?

The topic remains underexplored in Persian media. However, it has been examined in depth in the contemporary jurisprudence lectures by Professor Sayyed Moḥammad Reza Modarresi, a jurist and member of Iran's Guardian Council.

The introduction of educational sources on contemporary issues is only for the purpose of accurate knowledge of these issues and does not mean confirming the analyses or recommendations of those texts.

Articles for Reading regarding SDR currency:

International Liquidity and the Role of the SDR in the International Monetary System

Authors: Clark, P. B., & Polak, J. J. (2004).

IMF Staff Papers, 51(1), p49-71.

Published by the International Monetary Fund, this article encompasses both theoretical and practical aspects. As a result, most analyses are observational and grounded in real-world experiences. The authors are also senior consultants and managers within the IMF's research department.

Users' Guide to the SDR: A Manual of Transactions and Operations in Special Drawing Rights

Authors: International Monetary Fund

This article, prepared by the International Monetary Fund, presents the theoretical aspects of SDR in straightforward language while also exploring various types of contracts from a practical perspective.

Review of the Method of Valuation of the SDR. 

Authors: Tweedie, A. Hagan, S. Tiwari, Siddharth (2015)

IMF Policy Paper, 2015 (10)

This article, published by the International Monetary Fund, is a highly technical examination of SDR estimation and valuation. It covers the composition, size, preferred weights of the SDR currency basket, and the financial instruments used to determine related interest rates. Notably, various consultants from the IMF's financial, legal, strategic, and policy departments contributed to its compilation.

Download the articles from here.

International reference book for understanding special drawing rights:

Special Drawing Rights (SDRs): The First International Money

Author: Wilkie, C (2012).

Oxford University Press

The book explores the history of SDR, explaining its definition, the philosophy behind its creation, and its significance. It also analyzes the role of SDR as a source of support and stability for the global economy during financial crises.

In addition to his academic studies at esteemed institutions like the London School of Economics (LSE) and Oxford, the author has held various executive roles. These include serving in Canada's Department of Foreign Affairs and International Trade, acting as Canada's High Representative at the World Trade Organization, participating in the Business Conference and UN Development, and leading negotiations for Canada's investment agreements with China, new EU member states, and other nations.

Link to buy the book from Amazon:

https://www.amazon.com/Special-Drawing-Rights-First-International/dp/0199606463