US not in favour of new allocation

WASHINGTON:

US Treasury Secretary Janet Yellen on Friday said she does not see another allocation of International Monetary Fund (IMF) emergency reserves to member countries as appropriate at this time, when more existing reserves need to be channelled to poorer countries. Yellen told a news conference that the Treasury has asked the US Congress for permission to lend $21 billion in existing US Special Drawing Rights (SDR) to IMF trust funds for low- and middle-income countries, and was hoping for approval. The United States is the largest shareholder in the IMF, so its support for another SDR allocation would be crucial. The IMF in August 2021 created and issued $650 billion in SDR assets to member countries to aid their recovery from the Covid-19 pandemic, but poor countries are clamouring for more funds.

Published in The Express Tribune, October 16^th, 2022.

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