The concept of SDR currency basket that I am going to talk about today is actually very small, but it is very important.
What is SDR?
SDR stands for Special Drawing Rights.
According to the official presentation of the International Monetary Fund (IMF), SDR is an international reserve asset. SDR is not a currency, but it can be simply understood as a digital currency similar to China, and its value is based on a basket of currencies. The current basket of currencies includes: the US dollar, the euro, the Chinese yuan, the Japanese yen, and the British pound. Therefore, SDR is also known as "paper **", and SDR is also a kind of foreign exchange reserve.
How much is SDR worth?
Each unit of SDR was equal to 0888671 grams**, equivalent to the US dollar at the time.
On May 11, 2022, the Executive Board of the International Monetary Organization (IMO) completed the five-year review of the valuation of the Special Drawing Rights (SDR), maintaining the composition of the current SDR basket unchanged, i.e., still composed of the US dollar, the euro, the Chinese yuan, the Japanese yen and the British pound, and changing the weight of the RMB from 1092% to 1228%, weighting the dollar from 4173 to 4338 , while weighting the euro, the Japanese yen and the British pound respectively. 33 and 809 Lowered to. 59 and 744, the weight of the renminbi still maintains the third place.
It can be understood as:
SDR = 01228 units of RMB +04338 units USD +03093 units Euro + 00833 units GBP +00809 units of yen; At today's (January 10, 2024) exchange rate, 1SDR=94127 RMB (1 RMB = 0.)10624sdr）
What can I do when I join SDR?
Joining the SDR shows a kind of global trust in this currency, which is a hard currency, which is the basis for currency globalization and becoming an international currency.
As a result, many countries are willing to use the renminbi as their foreign exchange reserves, and as long as other countries increase the frequency and amount of the use of the renminbi, they will continue to enhance the international status of the renminbi and further promote the renminbi to become an international currency.
What is the status of the renminbi in the world's foreign exchange reserves?
In the first quarter of 2022, global foreign exchange reserves totalled 12$55 trillion, of which $6 is dollar assets88 trillion dollars, with a share of 5888%。
The world's second-largest reserve currency is the euro, with total euro reserve assets of 234 trillion US dollars, accounting for 20%.
The Japanese yen, which ranks third, accounts for 54%。
The fourth-ranked pound accounts for 497%。
The world's fifth largest reserve currency is the renminbi, accounting for 288%。
Although the data is a bit old, it is basically the proportion. Although the renminbi ranks fifth, it is still far from the top few.