IMF Urges $650b SDR Injection Be Directed to Covid’s Hardest Hit

The International Monetary Fund’s record $650 billion resource injection came into effect Monday, with Managing Director Kristalina Georgieva urging wealthy states to direct some of their allocation to countries lacking the means to cope with the Covid crisis and future challenges.

The creation of the reserve assets -- known as special drawing rights -- is the first since 2009, just after the global financial crisis. The IMF is setting up special vehicles to assist in channeling reserves to developing countries and already has the Poverty Reduction and Growth Trust that provides concessional loans, it said in a statement Monday.