UPSC 2016EconomyModerate

Recently, which one of the following currencies has been proposed to be added to the basket of IMF's SDR?

A
Rouble
B
Rand
C
Indian Rupee
D
Renminbi
Correct Answer

Explanation

The Chinese Renminbi (Yuan) was added to the IMF’s Special Drawing Rights (SDR) basket in 2016 after meeting the criteria of being a top global export currency and "freely usable" in international transactions. While the Indian Rupee is a tempting choice due to India's rising economic stature, it remains excluded because it does not yet meet the IMF's requirement for full convertibility and widespread international usage. This question tests the core concept of the SDR basket composition and the specific eligibility criteria required for a currency to function as an international reserve asset.

International Organizations & FinanceIMF Special Drawing Rights (SDR)IMFSDRSpecial Drawing RightsCurrency basketRenminbiRoubleRandIndian RupeeInternational reserve asset

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