economics medium True/False

Special Drawing Rights (SDRs) can be used directly by private corporations to settle international trade invoices.

  1. True
  2. False

Answer: False

SDRs are strictly an international reserve asset used by the IMF and member countries' central banks to settle balance of payments deficits or supplement official reserves. Private entities and individuals cannot hold or transact in SDRs; they must be exchanged for hard currencies first.

Topic International Economics - Institutions
Exam Relevance Banking, UPSC Prelims, SSC
More economics Questions Back to all questions