WASHINGTON, August 3. /TASS/. The International Monetary Fund (IMF) has approved the allocation of Special Drawing Rights (SDRs) equivalent to $650 bln to aid global economy in the wake of the coronavirus pandemic, according to the Fund’s statement made public on Monday.
"The Board of Governors of the IMF has approved a general allocation of Special Drawing Rights (SDRs) equivalent to US$650 billion (about SDR 456 billion) on August 2, 2021, to boost global liquidity," the document said.
"This is a historic decision - the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis," IMF Managing Director Kristalina Georgieva said. According to her, the allocation of these funds "will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy."
The Fund notes that the decision will become effective on August 23. The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund. At the same time, about $275 bln "will go to emerging markets and developing countries, including low-income countries.".