what does sdr mean

SDR (Special Drawing Rights), "Special Drawing Rights" According to the information provided by the Financial Planning and Operations Division of the International Monetary Fund (IMF), SDR is a reserve asset and unit of account created by the International Monetary Fund in 1969.

, also known as "paper gold", was originally created to support the Bretton Woods system and was later called "Special Drawing Rights".

Each SDR unit was originally defined as the price of 0.888671 grams of pure gold, which was also the value of 1 US dollar at the time.

When a balance of payments deficit occurs, it is used to exchange foreign exchange from other member countries designated by the IMF to repay the balance of payments deficit or repay IMF loans.

Special drawing rights can also be used as international reserves like gold and freely convertible currencies.

When using the Special Drawing Right as a unified unit of account, the conversion ratio between the currencies of each member country of the International Monetary Fund and the Special Drawing Rights also reflects the exchange rate of each member country's currency.

At the same time, it can also better reflect the comprehensive exchange rate of a country's currency.

SDR involves international settlement. As the unit of account of the International Monetary Fund, SDR is not a real currency. It must be converted into other currencies before use and cannot be directly used for trade or non-trade payments.

However, in many areas of international settlement, SDR can be seen as an international unified settlement currency unit.

In other words, if the conversion ratio of RMB to SDR changes, it will affect the settlement of various international businesses related to China.

The most common one is that the international roaming charges of China Mobile and China Unicom need to be settled with SDR.

Both companies stipulate that for users roaming abroad, the operator in the visited region or country chosen to use will be priced according to the billing currency unit used by the operator in the visited location, and converted into special drawings at a certain exchange rate.

Rights, and then converted from Special Drawing Rights into RMB and charged to the user.

In addition, the Universal Postal Convention also stipulates that the standard currency of the Universal Postal Union is the Special Drawing Rights.

In international mail and parcel delivery, fees for mail collection and delivery, calculation of mail return and resending fees, compensation for mail, etc. are all uniformly stipulated through the Special Drawing Rights, and the national currencies of each member country are calculated.

At the same time, the Special Drawing Rights also serve as the accounting unit for inter-postal settlements. When making payments, the Special Drawing Rights account amount is converted into the payment currency amount and the payment procedures are handled.

The postal department does not change the SDR conversion ratio frequently, but it is fixed for a long period of time.

In other words, frequency bands, air interface protocols and capabilities can be upgraded through software downloads and updates without completely replacing the hardware.

SDR provides effective and secure solutions to the problems of building multi-mode, multi-frequency and multi-functional wireless communication devices.

The SDR has the ability to be reprogrammed or reconfigured to operate with different waveforms and protocols by dynamically loading new waveforms and protocols.

These waveforms and protocols contain a variety of different components, including modulation techniques, security and performance features that are defined in software as part of the waveform itself.