 Financial crisis revives interest in special drawing rightsEconomic Letter, 2010, vol. 5, issue oct, No 10 Abstract: The financial crisis that began in mid-2007 brought renewed calls for an alternative to the U.S. dollar as the dominant reserve currency in international transactions. Several developing countries suggested greater use of special drawing rights (SDRs). ; SDRs were created in 1969 under the first amendment of the International Monetary Fund (IMF) Articles of Agreement to supplement member countries' international reserves. Nine years later, the IMF set the long-term objective of making the SDR \\"the principal reserve asset in the international monetary system.\\" To date, the SDR hasn't fulfilled that lofty aspiration. While the dollar's supremacy isn't likely to fade soon, a substantial allocation of SDRs in 2009 brought them back into the spotlight. ; Today, increasing the SDR's popularity would require more regular allocations and agreement on the same difficult issues that stalemated previous negotiations. It remains to be seen whether recent SDR allocations were a short-term response to the global crisis or the first of many steps in monetary system reform. Keywords: Global financial crisis; International trade - Econometric models; Dollar, American; Special drawing rights (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fip:feddel:y:2010:i:oct:n:v.5no.10 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Economic Letter from Federal Reserve Bank of Dallas Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.