April 19, 2021

Market and Financial News

Market and Financial News Aggregator

More than 200 groups urge G20 to back IMF issuance to help poor countries in pandemic By Reuters

3 min read

© Reuters. FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

WASHINGTON (Reuters) – Jubilee USA Network, Oxfam and 215 other civil society groups on Wednesday urged Group of 20 finance officials to back an issuance of $3 trillion of the IMF’s own currency, or Special Drawing Rights, to help countries weather the COVID-19 pandemic.

In an open letter to the International Monetary Fund and G20 finance ministers, the groups said a new allocation of SDRs would boost the reserves of all countries and avoid pushing low- and middle-income countries further into debt distress.

G20 finance ministers and central bankers will discuss a possible SDR issuance – a move akin to a central bank printing money – when they meet by video conference on Friday. Proponents note that such a move will not add cost for the IMF members.

Italy, which leads the G20 this year, is pushing for a smaller $500 billion allocation of SDRs, which can be converted to hard currency by IMF members – a move backed by France, Germany and others, but still lacking support from Washington.

The United States had opposed such a move under former President Donald Trump, but has not yet communicated a firm position on a new SDR allocation under President Joe Biden.

Treasury has declined to comment on the issue.

IMF Managing Director Kristalina Georgieva on Wednesday also called for the G20 to take strong policy action to reverse a “dangerous divergence” that she said threatened to leave most developing economies languishing for years.

In a blog ahead of Friday’s meeting, Georgieva said a new SDR allocation would substantially boost countries’ liquidity without increasing their debt burdens. It would also expand the capacity of donor countries to provide new resources, she said.

Religious groups have also weighed in. On Tuesday, the U.S. Conference of Catholic Bishops and Jubilee USA Network urged President Joe Biden to back a $3 trillion allocation to help poor countries bolster U.S. trade with the developing world.

Anti-poverty group ONE on Wednesday backed an allocation of $650 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Reuters

2021-02-24 18:50:27

All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator


Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.