In her written statement, Georgieva reported that the largest SDR allocation in IMF history went into effect today.
Referring to the importance of the allocation for the world, Georgieva noted that this is a "unique opportunity" to combat the unprecedented new type of coronavirus (Kovid-19) crisis.
"The SDR allocation will provide additional liquidity to the global economic system, increase countries' foreign exchange reserves and reduce their reliance on more expensive domestic or foreign debt," Georgieva said. made its assessment.
About $275 billion went to developing countries
Pointing out that countries can use SDR allocations to support their economies and accelerate their fight against the crisis, Georgieva said that SDRs are distributed to countries in proportion to their quota shares in the IMF.
Stating that approximately 275 billion dollars will go to developing countries, Georgieva noted that low-income countries will receive approximately 21 billion dollars.
Emphasizing that the allocation of SDR is a critical component of the IMF's efforts to support member countries during the epidemic, Georgieva said that 117 billion dollars of new financing has been provided to 85 countries to date, 29 countries have been given the faith of ease in debt payments, and to help ensure a stronger and more sustainable recovery. He stated that policy advice and capacity building support were provided to more than 175 countries.
SDR allocation of approximately 6.3 billion dollars to Turkey
According to IMF data, SDRs were allocated to 190 member countries in proportion to their current quotas in the fund.
The countries with the highest allocations of SDRs were the USA (about 112.6 billion dollars), Japan (about 41.8 billion dollars) and China (about 41.3 billion dollars).
4.46 billion SDR (approximately 6.3 billion dollars) was allocated to Turkey.
What is SDR?
The SDR is a unit of account created by the IMF in 1969 to supplement international reserves. The value of the SDR is determined on the basis of a basket consisting of the currencies of the countries and monetary unions that have an important place in the global economic system, and the composition of the said basket is reviewed every 5 years.
The value of the SDR is determined daily by the basket rate of the 5 major international currencies. Of these currencies, the rate of the dollar in the basket rate is 42 percent, 31 percent of the euro, 11 percent of the yuan, 8 percent of the yen and sterling.
The IMF issues SDRs to the central banks of member countries as reserve assets. Central banks can use this reserve asset to easily exchange foreign currency voluntarily with other central banks.
The IMF last allocated SDR in 2009 and provided $250 billion of SDR reserves to member countries to mitigate the effects of the global financial crisis.
Comments
No comment yet.