Answer: Franc is not part of IMF’s Special drawing rights.
Enrich Your Learning:
Currencies under IMF’s SDR basket:
The value of the Special drawing rights (SDR) is based on a basket of five currencies.
- S. dollar
- Chinese renminbi
- Japanese yen
- British pound sterling.
What are Special Drawing Rights?
- Special drawing rights refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF).
- In 1969 that operates as a supplement to the existing money reserves of member countries.
- It is created in response to concerns about the limitations of gold and dollars as the sole means of settling international accounts.
- SDRs augment international liquidity by supplementing the standard reserve currencies.
- The IMF uses SDRs for internal accounting purposes. SDRs are allocated by the IMF to its member countries.
- The makeup of the SDR is re-evaluated every five years.
- To participate in this system, a country was required to have official reserves which consisted of central bank or government reserves of gold.
- The SDR is neither a currency nor a claim against IMF assets, but a potential claim against the freely usable currencies of IMF members.