The President of African Development Bank (AfDB),Dr Akinwumi Adesina has called on the International Monetary Fund((IMF) to grant permission to Multilateral Development Banks(MDBs) to use its Special Drawing Rights to meet the financing deficit of vulnerable jurisdictions.
Speaking on a panel at the Summit for a New Global Financing Pact, African Development Bank President Akinwumi Adesina reiterated the case for multilateral development banks (MDBs) to be allowed to use the International Monetary Fund’s #SpecialDrawingRights.
Adesina said MDBs could leverage an allocation of $200 billion and turn this into a trillion dollars. “The MDBs are leveraging machines. They can leverage the SDRs by three to four times. So that leverage is very important to have,” he remarked.
IMF Managing Director Kristalina Georgieva, who also participated in the panel, announced that her institution had reached its target of making $100 billion in special drawing rights available for vulnerable countries.
Opening the summit on Thursday, United Nations chief António Guterres said many African nations were spending more on debt repayments than on much-needed #health care. He called for greater access to liquidity for developing countries through the IMF’s Special Drawing Rights.
Special Drawing Rights (SDR) is an international reserve created by the IMF to supplement the official reserves of its member countries. The SDR is not a currency.It is a potential claim on the freely usable currencies of IMF members.As such, SDRs c an provide a country with liquidity.
Source:AfDB
