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considerations fueled the launch, nearly 50 years ago, of the International Monetary Fund's Special Drawing Right as the precursor to a global currency.The original impetus for the SDR included concerns about a national currency's ability to reconcile the need for global liquidity provision with confidence in its role as the world's reserve currency – what economists call the "Triffin dilemma". By creating an international currency that would be managed by the IMF, member countries sought to underpin and enhance the international monetary system with a non-national official reserve asset.Legal and practical factors, as well as some countries' political resistance to delegating economic governance to multilateral institutions, have prevented the SDR from meeting its creators' modest expectations, let alone the grand role of a truly global reserve currency that anchors the cooperative functioning of a growth-oriented global economy. That gap has meant missed opportunities for the global economy – particularly in terms of asset-liability management, responsive liquidity, adjustment between deficit and surplus countries – and thus a gap between actual and potential growth. Specifically, the SDR's three roles – an official reserve asset, a currency used more broadly in financial activity and a numeraire – could ensure greater official liquidity, expand the range of new assets used around the world in public and private transactions, and boost its use as a unit of account.
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