The Board of Governors of the International Monetary Fund (IMF) has approved a general allocation of Special Drawing Rights (SDRs) equivalent to $650 billion for its members.
The fund, which will be shared among Nigeria and other IMF member countries, will enable beneficiaries boost liquidity and cushion the impact of the coronavirus crisis.
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“This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis. It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis,” IMF Managing Director, Kristalina Georgieva, said.
The fund was approved on August 2, 2021 but the general allocation of SDRs will become effective on August 23, 2021.
IMF said the newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the fund.
However, Nigeria had drawn a $3.4 billion loan from the initial SDRs in the wake of the COVID-19 lockdowns.
It is not immediately clear if Nigeria will apply for more borrowings from the SDR window as an IMF member country.
However, $275 billion of the fund had been approved for emerging markets and developing countries, including low-income countries, of which Nigeria is considered one.
