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IMF approves new SDR allocation to boost global liquidity amid pandemic

WASHINGTON
2021-08-03 06:52

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WASHINGTON, Aug. 2 (Xinhua) -- The board of governors of the International Monetary Fund (IMF) has approved a new general allocation of Special Drawing Rights (SDR) equivalent to 650 billion U.S. dollars, the largest allocation in the IMF's history, in an effort to boost global liquidity amid the COVID-19 pandemic, according to an IMF statement released Monday.

"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.

Noting that the SDR allocation will benefit all IMF members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy, Georgieva said it will particularly help the most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.

The general allocation of SDRs will become effective on Aug. 23, according to the statement.
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