#Ethiopia has been allocated 288.2 million dollars of SDR by the IMF on August 23, 2021.
What is an SDR? Is it money?
Special Drawing Rights (SDRs) are an asset, though not money in the classic sense because they can’t be used to buy things.
If SDRs are not money, how can countries use them?
1. Countries can exchange their SDRs for hard currencies with other IMF members. This has historically been done on a voluntary basis, with countries in a stronger financial position agreeing to help others when needed.
2. They can use their SDRs in a range of operations with other countries.
3. It can also be used to settle financial obligations to the Fund.
4. Many member countries that don’t need the support have used SDRs to support concessional financing to low-income countries.
IMF
#morningdose @OrbitEt
