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Q14·GS Paper 1 · Prelims 2016

SDR Basket Currency Addition

EconomyInternational Monetary SystemFactual singleMediumCurrent-affairs-linked

Question

Recently, which one of the following currencies has been proposed to be added to the basket of IMF's SDR?

Options

a

Rouble

b

Rand

c

Indian Rupee

d

Renminbi

Answer

Explanation

In 2015, the Chinese Renminbi (Yuan) was added to the IMF's Special Drawing Rights (SDR) basket, becoming the fifth currency to be included alongside the US Dollar, Euro, British Pound, and Japanese Yen. This was a significant development recognizing China's growing economic importance and the internationalization of its currency. The Renminbi's inclusion marked the first time a major emerging market currency was added to the SDR basket. The Russian Rouble, South African Rand, and Indian Rupee were not added at that time, though the Indian Rupee has been under consideration in various discussions. > Renminbi 2015 = SDR Currency Upgrade for China. Answer: d.

Question details

Year

2016

Paper

GS Paper 1

Question

Q14

Subject

Economy

Sub-topic

International Monetary System

Type

Factual single

Difficulty

Medium

Nature

Current-affairs-linked

Source hint

IMF SDR Basket Revision 2015

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