- To boost global liquidity IMF has announced general allocation of Special Drawing Rights (SDRs) equivalent to $650 billion out of which, $275 billion of the new would go to emerging markets and developing countries, including low-income countries.
- Nigeria is reported to be allocated about $3.35 billion out of the sum.
SDRs are supplementary foreign exchange reserve assets defined and maintained by the IMF created in 1969 to supplement a shortfall of preferred foreign exchange reserve assets, namely gold and United States dollars. The newly created SDRs would be credited to IMF’s member countries in proportion to their existing quotas in the Fund. According to sources, the general allocation of SDRs would become effective on August 23, 2021.
The move by the IMF, the largest SDR allocation in the history of the IMF, was hailed as a historic step. The allocations is expected to benefit all members, address the long-term global need for reserves, and particularly help the most vulnerable countries struggling to cope with the impact of the COVID-19 crisis, said IMF’s Managing Director, Kristalina Georgieva.
