Thursday, 2 April 2009

G20 agrees to create $250 billion worth of SDR's

Details emerging from the G20 discussion and policy decisions include this rather intriguing item relating to SDR's which is the international currency that the IMF currently administers.

A Financial Times article cites this in summary form and this will be worth closer examination when the full details are revealed.

In a new development, the G20 agreed to let the IMF create $250bn of Special Drawing Rights, its own currency, comprising dollars, euros, yen and sterling. This will boost the foreign exchange reserves of every country. Most of this cash will go to the big advanced economies, but poorer countries facing budgetary strains will gain new cash without normal IMF conditions.

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