Carlos de Sousa (Vontobel) | Early on in the pandemic the IMF attempted to expand its allocation of Special Drawing Rights (SDRs) to its member states, to help developing countries cope with the crisis and provide additional global liquidity. The Trump administration blocked this effort at the time, but now the Biden administration is in charge, a consensus appears to be building among the G7 nations regarding the approval of a $500 Bn of SDR allocation.
Special Drawing Rights
Marc Chandler via Caixin | A mountain peak is easier to see when viewed from a valley than from the summit. Similarly, it may be easier to understand the changes in China’s currency regime if we take a step back and try to look at the big picture: Beijing wants its currency added to the SDR mechanism for status reasons, not to benefit its exports.