Which international institution created the Special Drawing Right in 1969 as a supplementary reserve asset?

The International Monetary Fund created the Special Drawing Right in 1969 as a supplementary reserve asset.

The SDR was introduced when policymakers worried that the growth of international trade and reserves might outpace the supply of gold and widely accepted national currencies. It was designed to supplement member countries’ official reserves rather than function as ordinary money used by the public.

An SDR is not a physical banknote. It is an international reserve asset whose value is based on a basket of major currencies. Countries can exchange SDRs for usable currencies through arrangements involving other IMF members, and the IMF allocates SDRs to members according to agreed rules.

The basket has changed over time as the importance of currencies in the world economy has shifted. The Chinese renminbi was added to the SDR basket in 2016, alongside the US dollar, euro, Japanese yen, and pound sterling.