The International Monetary Fund was created as part of the Bretton Woods global monetary framework. Its primary task was to aid in keeping a stable global reserve currency regime. Once the gold exchange paradigm had fully collapsed in August 1971, the IMF was left somewhat twisting in the wind. It had in many ways lost its original mandate, even a clear reason for its existence. Floating currencies, many believed, made the institution obsolete.
The IMF had anticipated its precarious future position. In 1969, the Fund devised the Special Drawing Right (SDR) as a possible replacement for the…

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