International liquidity and SDRs

Key points

• The IMF is planning to issue a further $650 billion of SDRs.
• For the poorer countries, this issuance will be of considerable benefit as it will give them cheap and unconditional credit at a time of great economic stress.
• The proposed new allocation makes sense as a crisis support action, but it is enough for now and will probably be so for many years to come.

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