SSC MTS EXAM

Detailed explanation-1: -The SDR unit of valuation is known as paper gold. SDR represents Special Drawing Rights. It is an accounting entry and measures a nation’s reserve assets with IMF.

Detailed explanation-2: -The Special Drawing Right (SDR) is an interest-bearing international reserve asset created by the IMF in 1969 to supplement other reserve assets of member countries.

Detailed explanation-3: -The IMF created the SDR as a supplementary international reserve asset in 1969, when currencies were tied to the price of gold and the US dollar was the leading international reserve asset. The IMF defined the SDR as equivalent to a fractional amount of gold that was equivalent to one US dollar.

Detailed explanation-4: -UPSC Mains For which of the following the term “Paper Gold” is used? Notes: SDRs of the International Monetary Funds are also called Paper Gold. They are allotted to member countries by IMF and cannot be used by private parties. They are supplementary to Forex reserves.