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G-20 nears consensus on boosting IMF reserve amid Covid-19 pandemic

The Group of 20 nations on Friday moved closer to an agreement on boosting International Monetary Fund reserves to help poor nations devastated by the global pandemic, according to officials familiar with the discussions. Talks focused on a proposal for a $500 billion allocation of the IMF’s special drawing rights, but the final decision likely will come closer to the lender’s spring meetings in April, the officials said, asking not to be identified before a public statement. Friday’s virtual meeting of finance ministers and central bank governors was hosted by Italy. The breakthrough came after US Treasury Secretary Janet Yellen leaned toward supporting the action, reversing opposition last year under President Donald Trump. Her predecessor, Steven Mnuchin, blocked the move in 2020, saying that because reserves are allocated to all 190 members of the IMF in proportion to their quota, some 70 per cent would go to the G-20, with just 3 per cent for the poorest developing

Rueters quotes Eric LeCompte on Yellen s support of IMF s SDR currency

Reuters Quotes Eric LeCompte on Yellen s Support for a New SDR Allocation February 25, 2021 Reuters quotes Eric LeCompte on Yellen s support for a new Special Drawing Rights allocation to help poor countries. Read an excerpt below, and click here for the full story. Yellen backs new allocation of IMF s SDR currency to help poor nations By Andrea Shalal and David Lawder U.S. Treasury Secretary Janet Yellen on Thursday threw her support behind a new allocation of the IMF’s own currency, or Special Drawing Rights, but said broad parameters were needed to boost transparency on how the reserves are used and traded.

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