SDRs: better late than never

AdobeStock_IMF_575x375_8April2021
By Mariam Meskin
08 Apr 2021

The announcement this week that the IMF is on its way to issuing a further $650bn of special drawing rights, providing central banks with extra foreign currency liquidity, should not be criticised for being too little, too late. It marks a much needed return to multilateralism, something that the developing world will benefit from.

The proportion of the fresh SDRs going to the world’s poorest countries is too small, critics have said, and there is no guarantee that recipients in the developed world will redirect their allocation to help out.

Had the SDR allocation been agreed at the apex of the coronavirus ...

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