The G20 asked this Saturday (10.Jul.2022) for the IMF (International Monetary Fund) to implement by the end of August the release of liquidity of US$ 650 billion to member countries of the fund. The goal is to help the poorest countries accelerate access to vaccines against the pandemic. The release will be made with the largest allocation to date of DES (Special Drawing Rights), a free and unconditional international reserve asset within quota limits that each country has in the IMF. The information was released by the newspaper Valor Econômico. The DES can be sold or used for payment to other central banks. It cannot be used to buy things on your own. But countries can exchange their SDRs for cash among themselves, with the IMF acting as an intermediary to facilitate the transaction. Brazil currently has 2.32% of the IMF’s shares. With this, it will receive US$ 15.08 billion, which will be added to the country’s already high international reserves. For the managing director of the IMF, Kristalina Georgieva, the US$ 650 billion SDR package “is an injection in the arm for the world”. The new allocation was approved by the fund’s board of governors on Friday (9.Jul.2022). DES allocation is only made in a crisis situation and will now be justified by the covid-19 pandemic and the emergence of new coronavirus strains. The general perception is that the pandemic has shaved the coffers of already poor countries. The IMF calculates that faster access to vaccines for high-risk populations could save 500,000 lives by December. Altogether, emerging and developing economies will receive $274 billion from the SDR allocation, representing a 10% increase in their international reserves. According to the IMF, in some cases, their amounts have doubled. Low-income countries are expected to receive a liquidity injection of US$ 21 billion, in some cases this will represent 6% of their GDP (Gross Domestic Product). of finance and central bank presidents of the world’s largest economies say they will “continue to support all vulnerable countries affected by the covid-19 pandemic” and will support the proposed new SDR allocation. occur by the end of August. continue reading
Click to rate this post!
[Total: 0 Average: 0]
