SDR Reallocations for Africa: Meeting Civil Society Organizations from Senegal and Ghana
AfriCatalyst recently met with officials and representatives from several civil society organizations in Senegal and Ghana to discuss issues pertaining to the reallocation of Special Drawing Rights (SDRs), with a focus on Africa.
The SDR is an international reserve asset created by the IMF in order to supplement the reserves of member countries. Its value is based on a basket of 5 currencies: U.S. Dollar, Euro, Chinese Yuan, Japanese Yen and Pound Sterling. SDRs are allocated to countries in proportion to their quota shares at the IMF.
In August 2021, the Board of Governors of the IMF approved the largest SDR allocation in the history of the institution, equivalent to US $ 650 billion to boost global economy. Subsequently, the G20 endorsed a plan to reallocate $100 billion of new SDRs to low-income countries (LICs), small island developing states and the most vulnerable middle-income countries.
AfriCatalyst believes that it is essential for domestic stakeholders in African countries, within and outside the public sector, to develop a clear position on how best to use these resources to meet Africaâ€™s priority needs, while ensuring transparency and accountability.