GS PrelimsInternational relationsInternational Organizations2016

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

A

Rouble

B

Rand

C

Indian Rupee

D

Renminbi

Correct Answer: Option D

Explanation

1. The question asks which currency was recently (around 2016) proposed for inclusion in the International Monetary Fund's (IMF) Special Drawing Rights (SDR) basket. 2. The SDR is an international reserve asset created by the IMF. Its value is based on a basket of major currencies. 3. Prior to 2016, the SDR basket consisted of the US Dollar, Euro, Japanese Yen, and British Pound Sterling. 4. In November 2015, the IMF Executive Board decided to include the Chinese Renminbi (RMB) in the SDR basket. This decision became effective on October 1, 2016. 5. Therefore, the Renminbi was the currency proposed and subsequently added to the SDR basket around the time the question was asked. 6. The Russian Rouble, South African Rand, and Indian Rupee were not added.

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