Washington, Jul 9 : The International Monetary Fund (IMF) approved the high record $650 billion reserve increase, the fund’s Managing Director Kristalina Georgieva said Friday.
“The IMF Executive Board yesterday concurred in my proposal for a new general SDR [Special Drawing Rights] allocation equivalent to US$650 billion – the largest allocation in the IMF’s history – to address the long-term global needs for reserves during the worst crisis since the Great Depression,” Georgieva said in a statement. “I will now present the new SDR allocation proposal to the IMF’s Board of Governors for their consideration and approval. If approved, we expect the SDR allocation to be completed by the end of August.”
The SDR allocation will boost the liquidity and reserves of all IMF member countries, build confidence, and foster the resilience and stability of the global economy, she added. It also will help members, particularly vulnerable states to strengthen their response to COVID-19.
“We will maintain active engagement with our membership in the months ahead to identify viable options for voluntary channeling of SDRs from wealthier members to support our poorer and more vulnerable countries to help their pandemic recovery and achieve resilient and sustainable growth, which will also help boost global economic recovery,” Georgieva said.
SDR allocations are distributed across the membership in proportion to IMF quota shares, the fund clarified.
(UNI/SPUTNIK)
