Washington, Aug. 3 (BNA): The Board of Governors of the International Monetary Fund (IMF) has approved a cash injection of 650 billion dollars in the form of Special Drawing Rights (SDRs), the organization announced in Washington on Monday.
"This is a historic decision - the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis," IMF Managing Director Kristalina Georgieva said.
Special Drawing Rights are a form of international money, created by the International Monetary Fund and defined as a weighted average of various convertible currencies, dpa reports.
The 650-billion-dollar SDR allocation "will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy," Georgieva added.
"It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis," she asserted.
The new allocation of Special Drawing Rights will become effective on August 23. The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the fund.
About 275 billion dollars of the new allocation are to go to emerging markets and developing countries, including low-income countries, according to the IMF.
"We will also continue to engage actively with our membership to identify viable options for voluntary channeling of SDRs from wealthier to poorer and more vulnerable member countries to support their pandemic recovery and achieve resilient and sustainable growth," Georgieva said.