AFP, Washington :
IMF Managing Director Kristalina Georgieva said Friday the Fund’s executive board has backed increasing its special drawing rights (SDR) by $650 billion as it looks to support countries recover from the Covid-19 crisis.
The increase would be the biggest ever for SDRs, which are international reserve assets that aid governments in protecting their financial reserves against global currency fluctuations, and also help the IMF calculate loans and interest rates.
“The IMF Executive Board yesterday concurred in my proposal for a new general SDR 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.
“This is a shot in the arm for the world. The SDR allocation will boost the liquidity and reserves of all our member countries, build confidence and foster the resilience and stability of the global economy.”
