The International Monetary Fund (IMF) has increased its allocation of Special Drawing Rights (SDR) to India, in line with the country’s existing quota in the fund.
- The IMF has increased India’s SDR quota to 12.57 billion, which is equivalent to $17.86 billion at the latest exchange rate, on August 23.
- This increase in SDR holdings will be reflected in the Foreign Exchange Reserves (FER) data.
- SDR holding is one of the components of the foreign exchange reserves of India.
- SDR ( Special Drawing Rights) is an alternate reserve currency floated by the IMF, which the member countries can freely exchange between themselves instead of relying on currency of any one particular country.
