March 16, 2021 |
The audio on the International Monetary Fund’s live stream African Fiscal Forum went silent just as its managing director was encouraging the continent’s nations to be “bold” in pressing for vaccinations. Seconds later, when the sound returned to the March 1st event, Kristalina Georgieva could be heard saying: “… and let me finally say where I see boldness in what we are going to do at the fund.”
A beaming Georgieva announced that the Group of 20 nations had just agreed to allow the IMF to work on a new $500 billion special drawing rights (SDR) allocation.
The SDR is an international reserve asset created by the IMF in 1969. In 2009, the IMF issued SDR182.6 billion to provide liquidity and o
The International Monetary Fund's recent approval to increase the size of its Special Drawing Rights gives the international lender of last resort additional resources to grapple with equitable relief distribution, the environment and perhaps a new framework for bailing out indebted nations. Given current circumstances, 2021 could be a watershed moment in history for addressing sovereign indebtedness.