The first economic power on the African continent, Nigeria, we learn, will benefit from an amount of 3.35 billion USD as part of the general allocation of special drawing rights (SDRs) of the International Monetary Fund (IMF).
This amount represents 0.51% of the 650 billion dollars (equivalent to 456 billion SDRs) whose approval by the IMF’s board of governors was announced on August 2, 2021 by the international institution. The objective of this initiative is to increase liquidity in the world in this context of crisis.
“This SDR allocation will benefit all member countries, meet the global need for long-term reserves, boost confidence and strengthen the resilience and stability of the global economy. It will particularly help our most vulnerable member countries as they work to overcome the effects of the Covid-19 crisis, “said Kristalina Georgieva, Managing Director of the IMF.
In total, African countries will have to benefit from a global amount of 33 billion dollars in this framework, apart from the option which is still being studied: “voluntary” transfers of SDRs from richer countries to more countries. poor and more vulnerable “to help them recover from the pandemic and achieve resilient and sustainable growth”.
The general SDR allocation will take effect on August 23, 2021, according to the IMF.