Special Drawing Rights (SDR) is a “basket” of currencies created by the International Monetary Fund (IMF). The IMF is like a big bank for countries. SDRs are used by the IMF to keep track of money inside the IMF. Some countries also use SDRs to set the value of their own money. SDRs can also be used as a backup source of money for countries.
In the beginning, one SDR was worth the same as one US Dollar. Back then, the US Dollar had a set value in gold. But since 1974, the value of an SDR is based on a “basket” of important currencies from around the world. This basket used to have 16 currencies, but now it has five: the US Dollar, the Euro, the Chinese Yuan (added in 2016), the Japanese Yen, and the British Pound. Every five years, the IMF decides which currencies are in the basket and how much each one is worth.
NetFiscus allows you to view your net worth in SDRs, giving you a global perspective on your wealth that’s less affected by fluctuations in any single currency. When you enable the SDR feature, NetFiscus automatically converts all your assets and liabilities to SDRs using the latest exchange rates published by the IMF.
Viewing your net worth in SDRs offers several advantages:
NetFiscus uses the latest SDR valuation data published by the IMF to convert your assets and liabilities to SDRs. The process involves converting each of your holdings to the currencies in the SDR basket, then combining these values using the weights assigned to each currency in the basket.
This approach ensures that your net worth is accurately represented in SDRs, taking into account the relative importance of each major currency in the global economy. By using the official IMF data and methodology, NetFiscus provides a reliable and transparent way to view your wealth in this international reserve asset.
The SDR value is calculated using fixed amounts of five major currencies:
| Currency | Amount per SDR |
|---|---|
| USD (US Dollar) | 0.57813 |
| EUR (Euro) | 0.37379 |
| CNY (Chinese Yuan) | 1.0993 |
| JPY (Japanese Yen) | 13.452 |
| GBP (British Pound) | 0.080870 |
Valid until July 31, 2027 - This basket became effective August 1, 2022. The IMF reviews and updates the basket every 5 years.
To calculate the value of 1 SDR, each currency amount is converted to a common currency (typically USD) using current exchange rates, then summed together.
Example calculation for 1 SDR in USD:
(0.57813 × 1.00) + // USD component
(0.37379 × EUR/USD) + // EUR component
(1.0993 × CNY/USD) + // CNY component
(13.452 × JPY/USD) + // JPY component
(0.080870 × GBP/USD) // GBP component
= SDR value in USD
The May 2022 review set these percentage weights for each currency:
| Currency | Weight |
|---|---|
| USD | 43.38% |
| EUR | 29.31% |
| CNY | 12.28% |
| JPY | 7.59% |
| GBP | 7.44% |
Note: The fixed currency amounts stay constant for five years, but the effective weights fluctuate daily based on exchange rate movements.
The basket composition has evolved over time:
Official IMF SDR information: imf.org/special-drawing-rights-sdr