The International Monetary Fund (IMF) has awarded $3.35 billion to Nigeria as part of a historic general allocation of Special Drawing Rights (SDRs) (IMF).
The IMF Board of Governors approved a general allocation of approximately SDR456 billion – the equivalent of $650 billion – on Monday.
The Monday allocation intends to increase global liquidity at a time when the globe is dealing with the coronavirus (COVID-19) pandemic.
“This is a historic decision – the largest SDR allocation in IMF history and a shot in the arm for the global economy at a time of extraordinary crisis,” said Kristalina Georgieva, Managing Director of the International Monetary Fund.
The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries, despite the fact that it is not a currency.
It is a prospective claim on IMF members’ freely useable currencies that can offer liquidity to a country. The US dollar, Euro, Chinese Yuan, Japanese Yen, and British Pound make up the SDR.