Thanks Okie, at least we have a rumor complete with a news article posted by Dry in the IMF thread....lol...corey
Allocation could be made by end of August
Will bolster reserves of emerging markets, low-income countries
The International Monetary Fund (IMF) is planning to inject $250 billion into the global economy to bolster countries’ reserves as part of measures to combat the world economic crisis.
The IMF’s Executive Board on July 20 backed an allocation of Special Drawing Rights (SDRs) —an IMF reserve asset—equivalent to $250 billion to provide liquidity to the global economic system by supplementing the Fund’s 186 member countries’ foreign exchange reserves.
The equivalent of nearly $100 billion of the new allocation will go to emerging markets and developing countries, of which low-income countries will receive over $18 billion. The proposal will now be submitted to the IMF’s Board of Governors for final approval.
Response to global crisis
“The SDR allocation is a key part of the Fund’s response to the global crisis, offering significant support to its members in these difficult times,” IMF Managing Director Dominique Strauss-Kahn said.
The SDR allocation was requested as part of a US$1.1 trillion plan agreed at the Group of Twenty (G-20) summit of industrialized and emerging market countries in London in April and endorsed by the International Monetary and Financial Committee (IMFC) to tackle the global financial and economic crisis by restoring credit, growth, and jobs in the world economy. If approved by the Board of Governors with an 85 percent majority of the total voting power in a vote scheduled to close on August 7, the SDR allocation will be effected on August 28.
“The allocation is a prime example of a cooperative monetary response to the global financial crisis,” Strauss-Kahn said in a statement
Allocation could be made by end of August
Will bolster reserves of emerging markets, low-income countries
The International Monetary Fund (IMF) is planning to inject $250 billion into the global economy to bolster countries’ reserves as part of measures to combat the world economic crisis.
The IMF’s Executive Board on July 20 backed an allocation of Special Drawing Rights (SDRs) —an IMF reserve asset—equivalent to $250 billion to provide liquidity to the global economic system by supplementing the Fund’s 186 member countries’ foreign exchange reserves.
The equivalent of nearly $100 billion of the new allocation will go to emerging markets and developing countries, of which low-income countries will receive over $18 billion. The proposal will now be submitted to the IMF’s Board of Governors for final approval.
Response to global crisis
“The SDR allocation is a key part of the Fund’s response to the global crisis, offering significant support to its members in these difficult times,” IMF Managing Director Dominique Strauss-Kahn said.
The SDR allocation was requested as part of a US$1.1 trillion plan agreed at the Group of Twenty (G-20) summit of industrialized and emerging market countries in London in April and endorsed by the International Monetary and Financial Committee (IMFC) to tackle the global financial and economic crisis by restoring credit, growth, and jobs in the world economy. If approved by the Board of Governors with an 85 percent majority of the total voting power in a vote scheduled to close on August 7, the SDR allocation will be effected on August 28.
“The allocation is a prime example of a cooperative monetary response to the global financial crisis,” Strauss-Kahn said in a statement