Post by Jan Nieuwenhuijs on Oct 25, 2018 9:33:17 GMT
Hi JP,
In IMF documents I read that SDRs - a POTENTIAL claim on the freely usable currencies of IMF members - can only be traded on a voluntarily basis (sort of like with a mutual coincidence of wants). If there is a seller but no buyer, the IMF can 'activate the designation mechanism'. /photo/1
Something tells ME this will never truly work. There would need to be a real market for exchanging SDRs for FX. What am I missing?
Jan
In IMF documents I read that SDRs - a POTENTIAL claim on the freely usable currencies of IMF members - can only be traded on a voluntarily basis (sort of like with a mutual coincidence of wants). If there is a seller but no buyer, the IMF can 'activate the designation mechanism'. /photo/1
Something tells ME this will never truly work. There would need to be a real market for exchanging SDRs for FX. What am I missing?
Jan
