The Board of Governors of the International Monetary Fund, IMF, has approved a general allocation of Special Drawing Rights, SDRs, equivalent to US$650 billion (about SDR 456 billion) to boost global liquidity.
This has created a fresh opportunity for Nigeria and other countries with liquidity challenges, to access IMF facilities, to enable them fight the re-surging COVID-19, as well as strengthen their economies.
IMF Managing Director, Ms. Kristalina Georgieva, described the SDRs as the largest allocation in the history of the organisation.
She says 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. 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.
The general allocation of SDRs would become effective on August 23, 2021. The newly created SDRs would be credited to IMF member countries in proportion to their existing quotas in the Fund.
According to the IMF, about $275 billion (about SDR 193 billion) of the new allocation will go to emerging markets and developing countries, including low-income countries.
