Since the presence of the pandemic Covid, the funds of many economies and institutions have been profoundly affected. Things are not any more the same as when they were before the pandemic.
Revenues or incomes have reduced depending on the severity of financial impact.
Nonetheless, the International Monetary Fund (IMF) board of governors have approved a new Special Drawing Rights (SDR) allocation of $650 billion, the biggest in the organization’s history in response to the pandemic.
The SDRs are international reserve assets that are used as the accounting unit for IMF transactions with its member countries.
According to the financial institution, the SDRs will help build confidence and strengthen resilience but they are not a silver bullet. The allocation is part of a broader range of support measures that countries need to exit the crisis.
According to Ceyla Pazarbasioglu, who heads the Strategy, Policy and Review Department at the IMF, the SDR allocation will go a long way toward helping vulnerable countries and minimize the dangerous divergence in recovery paths around the world.