Portugal to receive €2.27Bn in IMF rights

 In EU, News

Portugal will today get 1.960 million units in Special Drawing Rights (SDR) worth around €2.3Bn in a proportional distribution of its share in the International Monetary Fund (IMF).

According to a document that has been approved by the board of directors of the IMF which will begin to bolster the exchange reserves of all EU member states from today (Monday 23 August, 2021) Portugal will receive €1.9Bn of SDFs corresponding to €2.775Bn at current US dollar exchange rates.
Special drawing rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). SDRs are units of account for the IMF, and not a currency per se. They represent a claim to currency held by IMF member countries for which they may be exchanged.
“The proposal will allocate US$650Bn, around 456Bn SDRs which are calculated on an evaluation of the long-term needs of Member State reserves and includes measures to enhance transparency and responsibility in how SDRs are used, while at the same time safeguarding their characteristics”, states a communiqué from the IMF about the issue.
“The Board of Governors of the IMF has approved a general allocation of Special Drawing Rights (SDRs) equivalent to US$650 billion (about SDR 456 billion) on August 2, 2021, to boost global liquidity.
“This is a historic decision — the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis. 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,” IMF Managing Director Kristalina Georgieva said.