IMF To Distribute $650b Reserves In New SDRs To Promote Post-pandemic Global Recovery
As per the latest reports on Aug 24th, 2021, it has been announced by the IMF that it is likely to distribute about $650 billion in new Special Drawing Rights (SDR) to its members, facilitating a “crucial boost” in the worldwide efforts to further battle the Covid-19 pandemic, as per Managing Director, Kristalina Georgieva.
This International Monetary Fund's biggest-ever dispersal of monetary reserves will benefit the global economy through an extra liquidity source, enlarging member nations’ foreign exchange reserves and mitigating their dependence on more costly domestic or external debts, as per Georgieva in a statement.
She further added, “The allowance of the monetary reserve is an essential encouragement for the world and, if it is utilized efficiently, it will act as an innovative opportunity to battle this unforeseen emergency.”
On the other hand, the IMF highlighted its interests in diverging patterns in the global economy and explained that this new SDR allocation would enable developed economies to support those adversely hit by the pandemic while boosting the perspective for the global economy.
Now nations can leverage SDR allocations to improve their economies and initiate steps to battle the Covid-19, but should not utilize the fiscal gap to postpone required financial changes or debt rebuilding, the IMF explained in a separate guidance document.
