NEW DELHI : After India, the US and other countries opposed an International Monetary Fund (IMF) proposal to issue fresh special drawing rights (SDR) currencies to help countries deal with the economic fallout of the coronavirus pandemic, the multilateral lender is thinking of redistributing existing unused SDRs of rich member-countries to low-income countries in desperate need.IMF chief economist Gita Gopinath said the SDR allocation issue is being discussed and that there is no consensus on it at this point. “Let’s be clear what the SDR can do.
When you do a general SDR or increase SDR allocations, most of it goes to the countries that don’t need it. Because it is proportional to your quota, it goes to the very large economies.