IMF Plans to Boost Global Liquidity after Approval of Record $650 Billion SDR

Source: International Monetary Fund

The International Monetary Fund Governors has allocated a record $650 billion to Special Drawing Rights to boost global economies following Covid-19 devastations.

• The SDR allocation is expected to address the global need for reserves, increase confidence, and boost resilience and stability across the globe.
• About $275 billion of the SDR allocation will go to the emerging and developing countries. 
• The IMF is engaging actively with its members to find options for voluntary channeling of SDRs to poorer countries to boost recovery.
• The global body is also considering alternative options to help vulnerable countries to boost recovery in the medium term.
• The SDRs allocation is the largest by the IMF and will become effective on August 23 this year.