Proposal To Establish A Resilience and Sustainability Trust
Author:
International Monetary Fund. Strategy, Policy, & Review Department
International Monetary Fund. Strategy, Policy, & Review Department Search for other papers by International Monetary Fund. Strategy, Policy, & Review Department in Current site Google ScholarClose
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International Monetary Fund. Finance Dept.
International Monetary Fund. Finance Dept. Search for other papers by International Monetary Fund. Finance Dept. in Current site Google ScholarClose
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International Monetary Fund. Legal Dept.
International Monetary Fund. Legal Dept. Search for other papers by International Monetary Fund. Legal Dept. in Current site Google ScholarClose
The challenges from the pandemic, spillovers from geopolitical shocks, and long-standing structural problems pose an enormous impediment for balance of payments stability and resilient and sustainable growth, especially for low-income and vulnerable middle-income countries. The $650 billion SDR allocation in August 2021 has helped support economic stability by supplementing members’ reserves. There is scope to amplify the effect of these SDRs by channeling them from countries with strong external positions to countries where the needs are the greatest.