The Special Drawing Rights (SDR) is an international reserve asset created by the International Monetary Fund (IMF) in 1969 to supplement member countries' official reserves. Key features: - Not a currency, but an accounting unit - Value based on a basket of five currencies: - US Dollar - Euro - Chinese Renminbi (added 2016) - Japanese Yen - British Pound - Allocated to IMF member countries - Can be exchanged for freely usable currencies Functions: - International reserve asset - Unit of account for IMF transactions - Provides liquidity to global economic system - Allocated based on countries' IMF quotas - Helps stabilize international financial system The SDR serves as a supplementary international reserve asset, providing additional liquidity to the global financial system when needed.