WASHINGTON, Aug 3 (KUNA) -- The International Monetary Fund (IMF) said Monday evening that its Board of Governors approved a general allocation of Special Drawing Rights (SDRs) equivalent to USD 650 billion "to boost global liquidity" that will become effective on August 23.
"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.
She added that the SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.
"It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis," she affirmed.
According to the IMF, the newly created SDRs will be credited to IMF member countries "in proportion to their existing quotas in the Fund."
It noted that about USD 275 billion of the new allocation "will go to emerging markets and developing countries, including low-income countries.
"We will also continue to engage actively with our membership to identify viable options for voluntary channeling of SDRs from wealthier to poorer and more vulnerable member countries to support their pandemic recovery and achieve resilient and sustainable growth," the IMF chief said. (end)