The largest public distribution in the history of the International Monetary Fund (IMF) of $650 billion, which was approved earlier this month, becomes effective Monday.
On August 2, the IMF’s Board of Governors approved a general distribution of the equivalent of $650 billion in Special Drawing Rights units (456 billion units) to its members, to support global liquidity.
Fund member countries will receive special drawing rights in proportion to their existing quotas in the fund.
The Fund’s Board of Governors approved a general distribution of the equivalent of $650 billion in SDRs. Ms. Georgieva, Managing Director of the Fund, says it is a historic decision reached during an unprecedented crisis. read more: https://t.co/VRauLUMVpgpic.twitter.com/6Y6GwZQlgT
— International Monetary Fund (@AkhbarAsunduk) August 3, 2021
Of the allocated funds, $275 billion went to developing countries, of which $25 billion went to members of the CIS (member states of the former Soviet Union) and Georgia, from which Russia received $17.5 billion.
According to a report published by “Reuters” agency yesterday, Yemen will get about $665 million from the fund’s reserves.
“Tomorrow all IMF member countries will receive their new allocations of Special Drawing Rights (SDRs). Countries must use these allocations responsibly and wisely for the benefit of all citizens,” the fund said in a tweet yesterday on the eve of the distribution.
The distribution aims to address the world’s long-term need for reserves, and help countries weather the impact of the COVID-19 pandemic.
Regarding the advantages of distribution, the Fund explained in a group of tweets that distribution opens the way for financing expenditures that help people to overcome the crisis, and it also enhances the reserves of member countries in the Fund, as well as supports the reforms of member countries.
What are the advantages of distributing the $650 billion SDR allocation?
1️⃣ Make room to finance expenses that help people overcome the crisis
2️⃣ Strengthening the reserves of member countries in the Fund
3️⃣ Supporting reforms of member countrieshttps://t.co/eyKcDITbjBpic.twitter.com/kFocsYmz5v
— International Monetary Fund (@AkhbarAsunduk) August 21, 2021
The Special Drawing Rights (SDR) is an international interest-bearing reserve asset created by the Fund in 1969, as a complement to other reserve assets of member countries.
The value of the Special Drawing Right (SDR) is determined according to a basket of five currencies (the US dollar, the euro, the Chinese yuan, the Japanese yen and the British pound).
Source: RT + RIA Novosti + Reuters
“Reader. Infuriatingly humble travel enthusiast. Extreme food scholar. Writer. Communicator.”