IMF approves US$650 Billion allocation of Special Drawing Rights in funding for fight against Covid-19

IMF approves US$650 Billion allocation of Special Drawing Rights in funding for fight against Covid-19

• The Board of Governors of the International Monetary Fund (IMF) have approved a record general allocation of $650 billion in IMF Special Drawing Rights (SDR), to help boost global liquidity.
• The $650 billion SDR allocation aims to support member countries, especially emerging and developing nations, battling the coronavirus pandemic and the economic downturn it has caused.
• This allocation is the largest-ever distribution in the IMF’s 77-year history, in terms of monetary reserves assets.
• The allocation will become effective from August 23, 2021.
• The newly created SDRs will be credited to member countries in proportion to their existing quotas shareholding in the Fund.