The Marginal Role of SDRs as an International Reserve Currency

The Marginal Role of SDRs as an International Reserve Currency

the International Monetary Fund's proposal to use SDRs as an inflationary replacement for the US dollar in international reserves. Some economists have suggested the IMF issue up to $1 trillion in SDRs to be used as a global reserve currency instead of the dollar. However, despite high expectations, SDRs have not gained widespread acceptance or usage on an international level, and their role as an international reserve currency has remained marginal.

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