IMF’s Board of Governors approves the general allocation of Special Drawing Rights (SDRs) of $650 billion to boost global liquidity.
- The SDR allocation will benefit all members to address long-term global needs for reserves, building confidence, and promoting stability and resilience.
- An estimated $275 billion of the new allocation will go towards emerging markets and developing countries, including low-income economies.
- The IMF has encouraged members with strong external positions to voluntarily channel part of their SDRs to increase lending for low-income countries.
- Concessional support through the Poverty Reduction and Growth Trust (PRGT) is interest-free.
The IMF is looking for other options to help poor and more vulnerable nations in their recovery efforts. A new Resilience and Sustainability Trust might improve resilience and sustainable growth in the medium-term period.
EUR USD up +0.09%
Source: IMF
