HONG KONG: China’s central bank governor Yi Gang said the International Monetary Fund (IMF) should turn to special drawing rights (SDR) in responding to the coronavirus pandemic.
A general allocation of SDRs, which are IMF units based on a basket of leading currencies, would boost all members’ foreign reserves and their purchasing power, Yi Gang said in an article published in the Financial Times newspaper on Thursday.
“It would be a quick, practical, fair and cost-effective response to this once-in-a-century crisis,” Yi wrote.
Yi said SDR allocation would especially help support those developing countries inadequately covered by current financial safety nets or currency swap arrangements. – July 16, 2020, Reuters
