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.