IMF is Pushing to Expand Special Drawing Rights... but the US Opposes
[Asia Economy Reporter Naju-seok] As the economic situation in developing countries rapidly deteriorates due to the novel coronavirus infection (COVID-19), the International Monetary Fund (IMF) is trying to increase Special Drawing Rights (SDR), but it is known that the United States, which holds the largest share, opposes it.
According to foreign media on the 15th (local time), the IMF and the World Bank are promoting measures to increase the issuance of SDRs for countries facing shortages in foreign exchange reserves due to COVID-19. This plan has already gained support from the Group of Twenty (G20).
It is reported that not only Germany and France but also African countries are in favor of increasing SDRs to supply liquidity. However, the United States is known to have a skeptical stance.
Bruno Le Maire, France's Minister of Finance, stated, "The current reaction from the United States is opposition."
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Despite the United States' skeptical position, Kristalina Georgieva, IMF Managing Director, is trying to increase SDRs. At a press conference, Managing Director Georgieva said, "What we need to focus on now is responding decisively with the resources we have. There will be consensus among member countries on this," adding, "We know there are other options related to this, and we will also consider those."
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