Special Drawing Rights and Arab Countries: Financing for Development in the Era of COVID-19 and Beyond - ESCWA

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Special Drawing Rights and Arab Countries: Financing for Development in the Era of COVID-19 and Beyond

ESCWA Publication: E/ESCWA/CL3.SEP/2021/POLICY BRIEF.1


Publication Type: Policy briefs

Cluster: Shared Economic Prosperity

Focus Area: Financing for development

Keywords: Covid-19, Special drawing rights, Foreign direct investment, Liquidity

Special Drawing Rights and Arab Countries: Financing for Development in the Era of COVID-19 and Beyond

September 2021

The International Monetary Fund (IMF) announced a historic new allocation of special drawing rights (SDRs) worth $650 billion. This is the largest allocation of SDRs since they came into existence as an international reserve asset in 1969, roughly the equivalent of all foreign direct investment flows ($663 billion) received by developing countries in 2020.

Through this new allocation, the IMF is providing a three-fold liquidity boost from $290 billion to $940 billion to support the COVID-19 recovery and post-pandemic resilience.

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