IMF's $650 billion reserves distribution is 'shot in arm' for global economy

• The IMF has distributed about $650 billion in new Special Drawing Rights (SDR) to its members on Monday, providing a "significant shot in the arm" for global efforts to combat the COVID-19 pandemic, Managing Director Kristalina Georgieva said.
• The International Monetary Fund's largest-ever distribution of monetary reserves will provide additional liquidity for the global economy, supplementing member countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt, Georgieva said in a statement.
• IMF member countries will receive SDRs - the fund's unit of exchange backed by dollars, euros, yen, sterling, and yuan -- in proportion with their existing quota shareholdings in the fund.
• Georgieva said about $275 billion of the allocation will go to emerging markets and developing countries, with some $21 billion to flow to low-income countries.

(Source: Reuters)