IMF to distribute SDR to member countries by August
The International Monetary Fund recently announced that it will distribute the Special Drawing Rights to its member countries by mid-August.
The IMF has agreed to support SDR allocation of 650 million USD. This is the largest in the history of IMF. Recently, the G20 Finance Minsters agreed to the International Monetary Fund to provide fresh SDR to its member countries. Earlier the ministers were concerned that liquidity injection could produce costly side effects if countries used the funds for irrelevant purposes.
Special Drawing Rights
The Special Drawing Right is neither a currency nor a claim on the IMF. The private entities cannot hold SDRs.
The international treaties that use Special Drawing Rights are Montreal Convention, Convention on Limitation of Liability for Maritime Claims. The convention caps personal liability for damage to shops at 330,000 XDR. XDR is the unit of Special Drawing Rights.
The international organisations using Special drawing rights are as follows:
- Japan External Trade Organisation
- Islamic Development Bank
- African Development Bank
- Asian Development Bank
- International Fund for Agricultural Development
The value of SDR changes every day. The IMF uses a basket of currencies to determine the SDR value, The weightage of the currencies depends on its prominence in international trade and the foreign exchange reserves of the respective nation. The weightage given to the currencies are as follows:
- US Dollar: 41.73%
- Euro: 31%
- Chinese Renminbi: 11%
- Japanese Yen: 8.33%
- British Pound: 8.09%
These currencies are reviewed once in five years. The Chinese Renminbi was added to the basket in 2016.
India-UK Roadmap 2030 and Enhanced Trade Partnership
The Indian Prime Minister Narendra Modi and the UK Prime Minister Boris Johnson held a virtual bilat...
ADB raises India GDP forecast by 11%
The Asian Development Bank recently released its Asian Development Outlook, 2021. According to the r...
ADB provided $1.5-billion to India for Covid response
The Asian Development Bank has provided fiscal support of 1.5 billion USD to India to fight against ...
IMF: Sub-Saharan Africa to see world’s slowest growth in 2021
The International Monetary Fund recently released the Regional Economic Outlook for Sub Saharan Afri...
IMF’s Asia Growth Forecast
The International Monetary Fund recently released its World Economic Outlook report. Under its repor...
|View All E-Books: Recent Release|