The value of the SDR is based on a basket of five currencies in the Special Drawing Rights (SDR) Currency Basket, Which is not among the 5 currencies?

The Correct answer is Indian Rupee.

Key Points

• The Special Drawing Rights (SDR) is an international reserve asset created by the International Monetary Fund (IMF).
• The value of SDR is based on a basket of five currencies.
• The five currencies currently in the SDR basket are:
  • US Dollar (USD)
  • Euro (EUR)
  • Chinese Renminbi (CNY)
  • Japanese Yen (JPY)
  • British Pound (GBP)
• The Indian Rupee is not included in the SDR currency basket.

 Additional Information

• Chinese Renminbi
  • The Chinese Renminbi (CNY) was included in the SDR basket in 2016.
  • This inclusion reflects China's growing influence in the global economy.
• US Dollar
  • The US Dollar (USD) is the dominant currency in the SDR basket.
  • It is widely used as a global reserve currency.
• British Pound
  • The British Pound (GBP) has historical significance and is one of the oldest currencies in the world.
  • It has been part of the SDR basket since its inception.