What does SDR mean?

SDR stands for Special Drawing Rights, which is an international monetary reserve asset created by the International Monetary Fund (IMF) to supplement its member countries' official reserves. The value of the SDR is based on a basket of major international currencies, including the US dollar, euro, Chinese yuan, Japanese yen, and British pound. SDRs are allocated to IMF member countries in proportion to their quota subscriptions, and can be used for a variety of purposes, including settling international transactions, diversifying reserve holdings, and providing liquidity in times of financial stress. SDRs also serve as a unit of account for the IMF and some other international organizations.