The IMF Executive Board has backed the proposal for a new general Special Drawing Rights (SDR) allocation equivalent to 650 billion dollars to address reserves during the COVID-19 crisis.
Ms Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF) said this in a statement on Friday in Washington DC on the board\u2019s decision to support the general allocation of SDRs.
Alluding to the SDR as the largest allocation in the IMF\u2019s history, Georgieva said that the fund was to address the long term global needs for reserves during the worst crisis since the Great Depression.
\u201cI will now present the new SDR allocation proposal to the IMF\u2019s Board of Governors for their consideration and approval. If approved, we expect the SDR allocation to be completed by the end of August.
\u201cThis is a shot in the arm for the world as 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.
\u201cIn 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.\u201d<\/p>\n\n\n\n