Questions raised by the SDR channeling

The decision to allocate SDRs up to 455 billion (i.e. approximately USD 650 billion), taken by the G20 and which should be validated by the IMF's Executive Board before the end of the summer, entails a more than threefold increase in the stock of public SDRs. Until now, a very large part of these SDRs has remained immobilized in the balance sheets of the central banks of the major economies. The new dimension that this instrument is taking on has initiated a reflection on how to make this injection of international liquidity more effective by redirecting it to the countries that need it. This reflection is also taking place in a context where the public finances of the main official development assistance donor countries are under pressure due to the consequences of the health crisis.

Cabrillac B. (2021) "Questions raised by the SDR channeling", FERDI Policy Brief B221