The board of governors of the International Monetary Fund (IMF) has approved the allocation of $3.35 billion to Nigeria as part of a historic general allocation of Special Drawing Rights (SDRs) of the International Multilateral Institution.
This is a result of the approval of a general allocation of about SDR456 billion, an equivalent of $650 billion, by the IMF Board of Governors on Monday.
This was disclosed in a statement issued by the IMF on Tuesday, saying that Nigeria will be allocated $3.35 billion out of the funds.
The allocation which was approved on Monday aims to boost global liquidity at a time when the world is grappling with the coronavirus pandemic.
The Managing Director of IMF, Kristalina Georgieva, in a statement, said, “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.”
Georgieva promised that IMF would continue to engage actively with its membership to identify viable options for voluntary channelling of SDRs from wealthier to poorer, and more vulnerable member countries to support their pandemic recovery and achieve resilient and sustainable growth.
IMF said in its statement that the general allocation of SDRs will become effective on August 23 and the newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund.