corrected post on IMF operations
May 07, 2010 at 09:45 AM EDT
I now understand it this way: The IMF creates and allocates new SDR’s to its members. There is no other source of SDR’s. SDR’s exist only in accounts on the IMF’s books. SDR’s have value only because there is an informal agreement between members that they will use their own currency to lend against or buy SDR’s [...]