Covid emergency, IMF approves allocation of 650 billion against the crisis

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09 July 2021 The IMF's green light for the allocation of Special Drawing Rights for a value of 650 billion dollars.

This was announced in a note by Kristalina Georgieva, director general of the IMF.

"The executive council - he reports - approved my proposal for a new allocation of SDR equivalent to 650 billion dollars, the largest allocation in the history of the IMF, to respond to long-term global needs during the worst crisis since the Great Depression. ".       

"I reserve the right to present the new SDR allocation proposal", the Fund's currency, "to the Board of Governors of the IMF for their evaluation and possible approval, after which we expect that the SDR allocation will be completed by the end of month of August ", says Georgieva, underlining that" in 2009 an allocation of SDR contributed significantly to the recovery from the financial crisis and I am confident that this new allocation will also benefit in this phase ".

"The allocation of SDR will help every IMF member country, especially the most vulnerable ones, and will strengthen their response to the crisis caused by Covid," adds Georgieva. Under the statute of the IMF, the general manager can propose an SDR allocation if he believes it can contribute to meeting a global need for foreign exchange reserves to supplement existing ones, thus avoiding stagnation and deflation. Once approved by the Executive Council, the Director General's proposal is submitted to the Board of Governors, whose decision on the assignment of the SDRs will require the support of the members represented 85% of those entitled to vote. The allocations of SDR are distributed among the members of the IMF in proportion to the relative shares of capital.