Islamabad
Moody’s has said that the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) could provide ‘meaningful support’ to countries like Pakistan.
The newly created International Monetary Fund’s (IMF) Special Drawing Rights would augment sovereigns’ foreign exchange reserves, most tangibly for lower-rated sovereigns with thin external buffers, although their direct effect in alleviating prevailing external liquidity pressures will be modest, Moody’s Investor Service said.
Measured against upcoming cross-border debt repayments, the additional SDR allocations could provide meaningful support for Pakistan, Zambia, Suriname, Tajikistan and Namibia, said Moody’s.
On 8 April, the International Monetary and IMFC, an advisory body to the International IMF, officially called for a comprehensive proposal on a general allocation of $650 billion in new SDRs in response to the coronavirus pandemic.—TLTP
