The Board of Governors of the International Monetary Fund (IMF) have approved a record general allocation of $650 billion in IMF Special Drawing Rights (SDR), to help boost global liquidity. The $650 billion SDR allocation aims to support member countries, especially emerging and developing nations, battling the coronavirus pandemic and the economic downturn it has caused.
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This allocation is the largest-ever distribution in the IMF’s 77-year history, in terms of monetary reserves assets. The allocation will become effective from August 23, 2021. The newly created SDRs will be credited to member countries in proportion to their existing quotas shareholding in the Fund.
Important takeaways for all competitive exams:
- IMF Headquarters: Washington, D.C. U.S;
- IMF Managing Director and Chairman: Kristalina Georgieva;
- IMF Chief Economist: Gita Gopinath.