Reuters :
Group of Seven finance ministers are likely to back a new allocation of the International Monetary Fund’s own currency, or special drawing rights, at an online meeting on Friday to help low-income countries, sources said.
A new issuance is similar to when a central bank prints money as the new SDRs give each IMF member more reserves to draw on in proportion to their shareholding in the Fund.
Officials from the United States, the IMF’s biggest shareholder, have signalled they are open to a new issuance of $500 billion, sources said – a clear shift in position under the administration of new U.S. President Joe Biden.
“We expect Friday’s G7 meeting to take decisions on important initiatives, and for France that is the question of a new allocation of IMF special drawing rights,” a French finance ministry source said.
A consensus among the G7 rich nations would pave the way for a broader agreement among G20 countries next month, which could in turn set the stage for a formal decision at the IMF’s annual spring meeting in April.
Group of Seven finance ministers are likely to back a new allocation of the International Monetary Fund’s own currency, or special drawing rights, at an online meeting on Friday to help low-income countries, sources said.
A new issuance is similar to when a central bank prints money as the new SDRs give each IMF member more reserves to draw on in proportion to their shareholding in the Fund.
Officials from the United States, the IMF’s biggest shareholder, have signalled they are open to a new issuance of $500 billion, sources said – a clear shift in position under the administration of new U.S. President Joe Biden.
“We expect Friday’s G7 meeting to take decisions on important initiatives, and for France that is the question of a new allocation of IMF special drawing rights,” a French finance ministry source said.
A consensus among the G7 rich nations would pave the way for a broader agreement among G20 countries next month, which could in turn set the stage for a formal decision at the IMF’s annual spring meeting in April.
