Special Drawing Rights (SDRs)

This credit unit was created by the International Monetary Fund (IMF) and originally linked to gold: one SDR being defined as 0.888671 grams. The gold link was later dropped and the SDR tied instead to a ‘basket’ of leading currencies. The IMF's total resources are comprised of its holdings of members' currencies, its holdings of SDRs, its holdings of gold, and "other assets" (such as buildings and receivables). The IMF holds 103.4 million fine ounces of gold, valued on its balance sheet at SDR 5.9 billion on the basis of an average historical acquisition cost. As mandated by the IMF's Articles of Agreement, gold acquired prior to 1978 is valued at SDR 35 per ounce, the "official" price used at that time in dealings among central banks. Gold acquired since 1978 (13 million ounces) is valued at the market price in effect at the time of acquisition. See also Official Gold/Monetary Institutions/IMF.