IMF Executive Board Backs a New US$650bn SDR Allocation


Friday, July 09, 2021 / 12:15 PM / By IMF / Header Image Credit: Twitter; @KGeorgieva


Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), made the following statement today regarding the Executive Board's decision supporting the general allocation of Special Drawing Rights (SDRs):


"The IMF Executive Board yesterday concurred in my proposal for a new general SDR allocation equivalent to US$650 billion - the largest allocation in the IMF's history - to address the long-term global needs for reserves during the worst crisis since the Great Depression.


"I will now present the new SDR allocation proposal to the IMF's Board of Governors for their consideration and approval. If approved, we expect the SDR allocation to be completed by the end of August."


"This is a shot in the arm for the world. The SDR allocation will boost the liquidity and reserves of all our member countries, build confidence, and foster the resilience and stability of the global economy. In 2009, an SDR allocation contributed significantly to recovery from the global financial crisis and I am confident that this new allocation will have a similar benefit now."


"The SDR allocation will help every IMF member country - particularly vulnerable countries - and strengthen their response to the COVID-19 crisis."


"We will maintain active engagement with our membership in the months ahead to identify viable options for voluntary channeling of SDRs from wealthier members to support our poorer and more vulnerable countries to help their pandemic recovery and achieve resilient and sustainable growth, which will also help boost global economic recovery."



Under the IMF's Articles of Agreement, the Managing Director may make a proposal for a general SDR allocation if the Managing Director is satisfied that the allocation would help meet a long-term global need to supplement existing reserve assets in a manner that will avoid stagnation and deflation as well as excess demand and inflation, and there is broad support among IMF members for the allocation. Once the Managing Director's proposal is concurred in by the Executive Board, it is submitted to the Board of Governors whose decision to approve an SDR allocation requires support by members representing an 85 percent majority of the total voting power of members that are participants in the SDR Department (currently all IMF members). SDR allocations are distributed across the IMF membership in proportion to IMF quota shares.

Proshare Nigeria Pvt. Ltd.

Related News

  1. IMF Discusses a New SDR Allocation of US$650bn to Boost Reserves, Help Global Recovery from COVID-19
  2. IMF Executive Board Approves Extension of Current SDR Valuation Basket Until July 31, 2022
  3. New Special Drawing Rights to Help Sovereigns Under Pressure but No Panacea
  4. Three Seas Initiative: A Path to Smart Development and Comprehensive Economic Growth
  5. African Leaders Unite to Support an Ambitious IDA20 Replenishment
  6. What Financial Choices for Africa in the Face of Climate Change?
  7. AfDB's New Economic Governance Strategy Advocates Bold Public Finance Reforms
  8. World Bank Financing for COVID-19 Vaccine Rollout Exceeds $4bn for 50 Countries
  9. AfDB Participates in Launch of AGRF Forum Platform Linking Africa's SMEs to Investment Opportunity
  10. African Development Bank Members Show Support for Plan to Tackle COVID-19

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.
Related News