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World financial leaders are expected by Germany to back a $650 billion new allocation of the International Monetary Fund’s Special Drawing Rights (SDR) this week to help countries cope with the economic fallout and pandemic.
This was made known on Tuesday as a senior German finance ministry official said “This is a reasonable figure” ahead of the virtual spring meeting of the International Monetary Fund and World Bank.
The official stated that the new U.S administration backing the move there’s now a broad agreement among IMF members to bolster the fund’s emergency reserves as the money being available from August because a deal this week will pave the way.
Countries struggling most from the pandemic are said to benefit from the new allocation as roughly 42% of the new funds would be going to the world’s poorest countries.
The move to bolster IMF’s emergency reserves is to reduce the recovery gap between rich and poor countries as the vaccination rates and economic development are diverging wide across the world