The United States is working with the International Monetary Fund (IMF) on a $650 billion allocation for the global COVID-19 recovery, the US Department of the Treasury said in a statement on Thursday.
“Treasury is working with IMF management and other members toward a $650 billion general allocation of SDRs [special drawing rights] to IMF member countries”, the statement said.
Reserving additional assets would help support the global recovery, while strong reconciliation abroad would help the US economy by increasing demand for exports of goods and services, as well as creating jobs and supporting businesses, the statement explained.
“An allocation of IMF Special Drawing Rights (SDRs) would help build reserve buffers, smooth adjustments, and mitigate the risks of economic stagnation in global growth”, the statement said.
This is only one in a range of tools to support the global recovery internationally, the statement added. This package includes robust support from the IMF, multilateral development banks, other national and international measures, the statement added.
IMF spokesperson Gerry Rice said last week that the Fund conducted initial discussions on allocating additional $650 billion in special drawing rights in support of the global COVID-19 recovery. IMF Managing Director Kristalina Georgieva has indicated that she would raise the issue at the IMF Executive Board meeting in June, Rice said.