Emory : SDRs are Special Drawing Rights.
(1) An "artificial" currency created by the IMF to represent a weighted balance of the major currencies in the world. The correct proportion escapes me now but you can find it out if you do an Internet search. Most is the US dollar (about 60%) and also included is the DMark, Sterling, French Franc and Yen.
(2, 3)The significance, in respect of gold, is that the relationship is as "currency neutral" as one can find. I am sure you have already realized, since the various currencies are all measured against the US dollar, when the value of the dollar rises, they fall. And, when the value of the currencies fall, then the gold price, measured in the currencies, rises. There's no magic here, just simple arithmetic. What one really needs to see is an average of the gold price in all relevant currencies and weighted in terms of purchasing demand in each country. But, failing that, SDRs will have to do.
(4) Indeed, 1996. Sorry. |
