This archive report was first published on 28 August 2021.
On August 23, the International Monetary Fund (IMF) issued the largest-ever general allocation of the $650 billion Special Drawing Rights (SDRs), providing $3.17 billion to regional economies.
The SDRs, which are not loans, will be used solely at the discretion of the receiving countries without any conditions. This financial relief is expected to help countries hard hit by the coronavirus pandemic.
According to the IMF, Kenya received the largest share, $740 million, followed by Tanzania at $540 million, Uganda at $490 million, and Ethiopia at $410 million. South Sudan received $340 million, while Rwanda and Somalia got $220 million each. Burundi received $210 million.
IMF Managing Director Kristalina Georgieva stated that the SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.
“The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It will particularly help our most vulnerable countries struggling to cope with the impact of the Covid-19 crisis,” Ms Georgieva said.
Of the new allocation, about $275 billion will go to emerging markets and developing countries, including low-income economies. Sub-Saharan Africa has received $23.61 billion.
Ms Georgieva added that the IMF will continue to engage with its membership to identify viable options for voluntary channelling of SDRs from wealthier to poorer and more vulnerable member countries to support their pandemic recovery.
International charity Oxfam welcomed the move, stating that the receiving countries have a historic and unique opportunity to use this significant debt-free financing to ramp up their pandemic response and pave the way for a fair and just recovery that reduces inequalities.
South Sudan's Central Bank Governor Dier Tong confirmed that Juba had received $334 million to improve its ailing economy.
