However, at 197 1, the stagnation of US economic growth forced the Fed to tighten its stance and released a lot of liquidity to the world like a runaway horse. This changed monetary policy stance no longer matches the fixed exchange rate system under the gold standard: the "currency anchor" of the US dollar is too weak. President Nixon announced that the value of the dollar was decoupled from gold.
By 1973, the fixed exchange rates of most other major currencies against the US dollar were abandoned one after another, and the Bretton Woods system disintegrated. When discussing whether it is necessary to continue to increase SDR allocation, the IMF decided not to increase SDR. Considering that the US balance of payments deficit has increased the global reserve currency, the function of SDR as a supplementary reserve asset is no longer so important.
At the same time, with the break of the fixed exchange rate system, SDR began to be linked to a basket of currencies, initially 16 currency, and later changed to five currencies: the United States, Britain, Germany, France and Italy. The yen was included in the SDR basket at 1980. After the appearance of 1999, the euro replaced the currencies of three continental European countries, and together with the US dollar, the British pound and the Japanese yen, it formed the first currency basket of 15 in the new millennium.
The credit of $ 1978 was once again questioned: the loose monetary policy implemented by the Carter administration in the United States led to a rapid rise in the price level in the United States. Oil exporting countries, including the Organization of Petroleum Exporting Countries, began to worry about the stability of the US dollar, and Saudi Arabia even converted some surplus funds into Swiss francs and German marks.
1October 30th 1978, 10 USD plunged in panic against major currencies. Many countries are wary of the growing dollar-denominated foreign exchange reserves. Major holders of foreign exchange reserves have expressed reluctance to increase their holdings of US dollar assets. In the following four years, the IMF*** issued 654.38+0.2 billion units of SDR.
Fast forward to 2008, when the global financial crisis broke out, the status of the US dollar was once again impacted and questioned. In order to alleviate the liquidity tension of the global financial system and hope to better reflect the economic status of emerging market countries by distributing SDR to them, the IMF created 654.38+0826 billion SDR in 2009 and distributed it to member countries according to their share in the IMF. This is the third round and the largest SDR issue in history. As a result, the total amount of SDR held by countries around the world reached 204 1 100 million.