Sharing the Recovery: SDR Channeling and a New Trust

2021-10-12T14:32:37-04:00October 8, 2021|

By Ceyla Pazarbasioglu and Uma Ramakrishnan

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Options to magnify the impact of the Special Drawing Rights Allocation through voluntary channeling.

One of the most significant measures introduced by the International Monetary Fund in response to the global pandemic was the recent historic allocation of Special Drawing Rights, or SDRs. The challenge now is to ensure this distribution is redirected—or channeled—to where the need is greatest. To that end, we are exploring three options to enable more resilient and sustainable economic futures for the poorest and most vulnerable countries.

The task now is to redirect the SDRs to their greatest effect.

The IMF’s response to COVID-19

Since the onset of the COVID-19 pandemic, the IMF has lent nearly $117 billion to 87 countries. We reshaped our lending policies to enhance our support to members, and recently reformed our concessional lending policy framework under the Poverty Reduction and Growth Trust (PRGT) to expand our lending to low-income countries.

We have also joined forces with the other international organizations to help accelerate the global vaccine rollout, and improve access to non-vaccine therapeutics and diagnostics.

But we didn’t stop there. The historic SDR allocation, back in August, equivalent to $650 billion, […]