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The International Monetary Fund neared final approval to create a record $650 billion of new reserves, as Managing Director Kristalina Georgieva said she will present the proposal to the institution's board of governors to pave the way for issuing the funds by the end of August.
The fund's executive board on Thursday concurred with the plan for a new allocation of so-called special drawing rights, the largest in its history, the Washington-based IMF said in statement. Bloomberg News on June 25 reported that the executive board gave unanimous support for the proposal.
Read more: Special Drawing Rights, the IMF's Imperfect Tool: QuickTake
“This is a shot in the arm for the world,' Georgieva said. “The SDR allocation will boost the liquidity and reserves of all our member countries, build confidence, and foster the resilience and stability of the global economy.
The fund is “identifying viable options” for voluntary channeling of SDRs from wealthier members to poorer, more vulnerable countries to help their pandemic recovery and achieve resilient and sustainable growth, she said.
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