BAKU, Azerbaijan, Sept. 10
Trend:
The SDR (Special Drawing Rights) allocated by the International Monetary Fund (IMF) has increased the gross international reserves of the National Bank of Kazakhstan, Trend reports with reference to the bank.
On August 23, 2021, the decision of the IMF Board of Governors came into force on the general allocation of special drawing rights in the amount of $650 billion (nearly 456 billion SDRs). Some 1.11 billion SDRs ($1.57 billion) were allocated to Kazakhstan.
The additional SDR issues were distributed among the IMF member countries proportionally to their quotas in the organization. This allocation is intended to provide states with access to additional funds to ensure the stability of the global economy during the recovery from the crisis.
The SDR is the IMF's unit of account that can be exchanged for freely convertible currency.
Members of the IMF can use the SDR at their own discretion, for example, to repay a previously received fund loan. Moreover, developed countries and countries with low debt burdens can voluntarily transfer SDRs in the form of assistance to more vulnerable countries to recover their economies after the crisis.