U.S. says G7 may reallocate $100 bln from IMF funds to COVID-ravaged nations – Reuters

SourceReuters
SectorFinancial Markets
CountryMiddle east

The United States and other Group of Seven nations are considering reallocating $100 billion from the International Monetary Fund’s warchest to help countries struggling to cope with the COVID-19 crisis, the White House said.

The issue will be on the table when G7 leaders discuss how to help steer the world’s recovery from the coronavirus pandemic at a three-day summit in Cornwall, England, which began on Friday.

“The United States and our G7 partners are actively considering a global effort to multiply the impact of the proposed Special Drawing Rights (SDR) allocation to the countries most in need,” the U.S. president’s office said.

“At potentially up to $100 billion in size, the proposed effort would further support health needs – including vaccinations,” it said, adding that it would help promote a more sustained and inclusive global recovery.

SDRs are the IMF’s reserve asset, and are exchangeable for dollars, euros, sterling, yen and Chinese yuan or renminbi. Member states can loan or donate their SDR...read more...