Is SDR issuance the best way to support low-income economies?
Economists and policy-makers are increasingly discussing SDRs as way to boost liquidity in Covid-19 fight
As the true magnitude of the Covid-19 crisis becomes apparent, the focus is shifting to finding ways to better support low-income economies in the months and years ahead.
One option gaining traction is the issuance of special drawing rights (SDRs) through the International Monetary Fund. This would boost reserve buffers, allowing weaker states to finance higher health expenditure and imports, while commodity exports, remittances and tax collection are experiencing an unprecedented shock.
“What
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