Nigeria to get $3bn as IMF’s $650bn SDR kicks off

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Nigeria is set to receive about $3.35billion as its share of the International Monetary Fund (IMF) $650billion Special Drawing Rights (SDRs) to help boost the liquidity of its member countries buffeted by the Coronavirus pandemic.

Managing Director of the IMF, Kristalina Georgieva, who announced the  distribution in a statement on Monday, said the SDRs will be distributed to countries in proportion to their quota shares in the IMF.

She said $275 billion will go to emerging and developing countries, of which low-income countries will receive about $21 billion.

“The largest allocation of Special Drawing Rights (SDRs) in history—about US$650 billion—comes into effect today. The allocation is a significant shot in the arm for the world and if used wisely, a unique opportunity to combat this unprecedented crisis,” the statement reads.

“The SDR allocation will provide additional liquidity to the global economic system–supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis.

“SDRs are being distributed to countries in proportion to their quota shares in the IMF. This means that about $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.”

“The largest allocation of Special Drawing Rights (SDRs) in history—about US$650 billion—comes into effect today. The allocation is a significant shot in the arm for the world and if used wisely, a unique opportunity to combat this unprecedented crisis,” the statement reads.

“The SDR allocation will provide additional liquidity to the global economic system–supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis.

“SDRs are being distributed to countries in proportion to their quota shares in the IMF. This means that about $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.”

SOURCE: THE SUN

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