The International Monetary Fund (IMF) has approved a new general allocation of Special Drawing Rights (SDR) equivalent to $650 billion, the largest in the IMF’s history.
The allocation was in an effort to boost global liquidity amid COVID-19 pandemic, according to a statement released. “This is a historic decision the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis,’’ said IMF Managing Director, Kristalina Georgieva.
Georgieva noted that the SDR allocation would benefit all IMF members, address the long-term global need for reserves, build confidence and foster the resilience and stability of the global economy. Georgieva said that this would particularly help the most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.
About $275 billion (about SDR 193 billion) of the new allocation would go to emerging markets and developing countries, including low-income countries, according to the multilateral lender. “SDRs are a welcome finance mechanism for Zimbabwe and the rest of Africa, they are not conditional, a country can utilise the funds as according to their own blueprints.’’
VANGUARD
No comments:
Post a Comment