IMF Executive Board Approves Creation of $650 Billion Global Reserve Funds

Critical COVID Aid Could Reach Developing Countries in August

The International Monetary Fund Executive Board agreed to create $650 billion of emergency currency known as Special Drawing Rights (SDRs) to help countries deal with the fallout from the coronavirus health and economic crises. The IMF’s main governing body, the Board of Governors, will take a final vote in coming weeks to move forward the SDRs creation. In a statement, IMF Managing Director Kristalina Georgieva indicated she expects the allocation as soon as August. 

“This is the biggest creation of emergency reserve funds that we've ever seen and developing countries will immediately receive more than $200 billion,“ said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network, that worked on the creation of the emergency currency since March of 2020.

In June, G7 leaders called for a global effort to mobilize $100 billion of SDRs for vaccines, protecting the environment and poverty reduction.

“Wealthy countries who receive emergency reserves they don't need should transfer those resources to developing countries struggling through the pandemic,” added LeCompte.

In February, Jubilee USA Network and the US Conference of Catholic Bishops sent a letter to Treasury Secretary Yellen and President Biden expressing support for a new $3 trillion SDR allocation. In March, Jubilee USA Network organized a roundtable with high-ranking religious leaders and Yellen that focused on SDRs. Jubilee USA Network also coordinated organizational letters targeting G20 leaders, the White House and the IMF, that gathered more than 200 signatures in support of SDRs.

Read IMF Managing Director Kristalina Georgieva's statement on SDR allocation here.

Read Jubilee USA's G20 COVID Response letter with over 265 signatories here.

Read Jubilee USA's statement on the G7 Summit and communiqué here.

Read Jubilee USA and US Conference of Catholic Bishops joint letter to the White House here.

View the agenda and read about the Jubilee USA Treasury High-Level Religious Leader Roundtable here.