In 2021, the international community agreed to an issuance of special drawing rights of US$650,000 million, of which 33,000 million should go automatically to African countries, following the quotas part of each State in the Washington-based multilateral institution. .
The goal of redistributing US$100 billion to poor countries Special drawing rightsa reserve currency of the International Monetary Fund (IMF) which serves for development and climate transition, has been reached, its managing director, Kristalina Georgieva, announced Thursday.
“The target was set at $100 billion,” and right now “we’ve reached the target, we’ve got $100 billion,” Georgieva told a financial summit in Paris.
In 2021, the international community agreed to an issuance of special drawing rights of US$650,000 million, of which 33,000 million they should go automatically to African countries, following the quotas of each State in the multilateral institution based in Washington.
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Kristalina Georgieva
However, the Member States wanted to go further and that this amount for developing countries would rise to US$100,000 million, redirecting corresponding rights to rich countries. An objective that took longer than expected.
The redistribution of those special drawing rights is part of a series of commitments from the richest countries to developing nations, which were slow to materialise.
Another of them was the promise made in 2009 to help poor countries with 100,000 million dollars a year to finance prevention and adaptation to climate change, a figure that could be reached this year, three years late.
Faced with the crisis of confidence generated among the countries of the South, the international financial institutions have promised internal reforms to give themselves more means with which to combat poverty and climate change in the most vulnerable countries.
Source: Ambito
