The Strategist

IMF makes historic decision for economic recovery after COVID-19

08/03/2021 - 03:45

The International Monetary Fund (IMF) has made a historic decision to boost recovery from the coronavirus pandemic and allocated $650 billion in additional reserve assets. The statement is published on the organisation's website.

Marco Verch
Marco Verch
It is noted that the Executive Board approved the allocation of Special Drawing Rights (SDR) - that is, the IMF's non-cash unit of account, the value of which is determined daily against the market rate of key currencies, for an equivalent amount to boost global liquidity.

The distribution will begin on 23 August for all members of the fund in proportion to their quotas. The $275 billion will go to support emerging markets and low-income countries.

"This is a historic decision - the largest SDR allocation in IMF history," stressed fund managing director Kristalina Georgieva.

Earlier, the International Monetary Fund, in a report on global economic recovery from the effects of the coronavirus pandemic, forecasted years of high prices and faster-than-normal levels of inflation for the world. According to the authors, the new problems could be caused by additional logistical disruptions and rising housing prices, as well as devaluation of the currencies of developing countries, which would lead to higher import costs in them.