By BUUMBA CHIMBULUA PROPOSAL for a general allocation of Special Drawing Rights (SDRs) equivalent to US$650 billion to the board of governors for approval has been submitted by the International Monetary Fund (IMF) Managing Director Kristalina Georgieva.This is meant to enable member countries, such as Zambia, with strong economic fundamentals to divert reserves to low-income and vulnerable countries.Once approved, the development spells hope for an opportunity to shore up decade low foreign exchange reserves for Zambia.The proposal follows the Executive Board discussion of the general allocation of SDRs on June 25 and its formal support of the proposal on July 8, 2021.According to a statement from the IMF, the Board of Governors was scheduled to vote on the proposal by August 2, 2021.“Approval of the general allocation of SDRs requires support by members representing an 85 percent majority of the total voting power of SDR Department participants (currently all IMF members). “Once approved, the allocation is […]
IMF PROPOSES $650BN FOR LOW-INCOME COUNTRIES
