On Monday, August 23, the largest allocation of Special Drawing Rights (SDRs) in history — about US$650 billion — comes into effect.
This was reported on the IMF website.
SDRs are being distributed to countries in proportion to their quota shares in the IMF. This means about US$275 billion is going to emerging and developing countries, of which low-income countries will receive about US$21 billion – equivalent to as much as 6 percent of GDP in some cases.
1.928 billion SDRs will be transferred to Ukraine without any conditions and obligations, which corresponds to 2.7 billion dollars.
According to IMF Managing Director Kristalina Georgieva, "This allocation is a significant shot in the arm for the world and, if used wisely, a unique opportunity to combat this unprecedented crisis.”
Afghanistan, Myanmar and Venezuela will not receive any money with since the IMF has suspended their cooperation due to the illegitimateness of their ruling regimes,
"Today, 1.9 billion SDRs have been received by Ukraine's account within the IMF! A great gift for Independence Day! Glory to Ukraine," the First Deputy Head of the National Bank of Ukraine, Ekaterina Rozhkova wrote on Facebook.
It is worth noting that special drawing rights (SDRs) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a supplement to the existing money reserves of member countries.