Nigeria To Get $3bn As IMF’s $650bn SDR Comes Into Effect
Nigeria will receive $3.35 billion as its share of the International Monetary Fund(IMF) $650bn special drawing rights (SDRs) to help boost the liquidity of member countries.
Kristalina Georgieva, managing director of the IMF, announced the deployment in a statement on Monday.
SDR is an international reserve asset created by the United Nations specialised agency to supplement its member countries’ official reserves.
According to IMF, SDR allocation is cost-free — does not add to any country’s public debt burden.
She was quoted in the statement, as saying, “The largest allocation of Special Drawing Rights in history – about $650bn – 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.”
She added that the allocation would provide extra liquidity to the global economy.
The IMF boss said countries should ensure that decisions on the use of SDRs “should be prudent and well-informed”.
She further stated that IMF would provide a framework for assessing the macroeconomic implications of the new allocation, its statistical treatment and governance, and how it might affect debt sustainability.
The bank would also provide regular updates on all SDR holdings, transactions, and trading – including a follow-up report on the use of SDRs in two years’ time.
