The SDR serves as the On 2nd August 2021, the International Monetary unit of account of the IMF and other international Fund (IMF) approved the allocation of Special organizations. [...] It is the size of these quota subscriptions AFRODAD conducted a study to review the (hereafter referred to as quotas) that determines utilization of SDRs for Zambia since the the voting power of member countries and the allocation in August 2021. [...] Quotas are The general objective of this policy brief was to review the utilization of the 2021 IMF SDRs General determined by an IMF formula that depends on Allocation to Zambia and draw lessons from other the size of the economy, international trade countries for prudent management of resources in the volumes and international reserves of member country. [...] other 50 percent of the SDR allocation to finance the 2023 and 2024 national budgets via a Another part of the SDRs was used to provide breakdown of 25 percent in each year.9 With financing to the youth and women empowerment respect to budget performance, the difference fund under the constituency development fund between revenues (K72.1 billion) and (CDF) and grants to all hospitals in the countr. [...] and the Resilience and Sustainability Those in the G7 and G20 have since made Trust (RST) proposals to the IMF for voluntary rechanneling of unused SDRs to low-and middle-income One of the IMFs lending instruments that countries facing severe effects of the pandemic supports low-income countries facing short- and through the upscaling of the Poverty Reduction medium-term challenges on concessional.
Authors
- Pages
- 13
- Published in
- Zimbabwe
Table of Contents
- POLICY BRIEF - NOVEMBER 2022 2
- 1. Background ........................................................................................................ 1 2
- 2. Rationale ........................................................................................................... 1 2
- 3. Objectives ......................................................................................................... 2 2
- 4. The Allocation Process of the Special Drawing Rights SDRs ............................. 2 2
- 5. The Utilization of Zambias 2021 IMF SDR Allocation .......................................... 3 2
- 6. Utilization of SDRs in other Countries ................................................................ 4 2
- 7. Possible Alternatives for the Utilization of the SDRs .......................................... 5 2
- 8. SDRs as a Debt Relief Package ........................................................................... 7 2
- 9. The Reformation of the SDR Allocation and Rechanneling System ..................... 8 2
- 10. Conclusion ........................................................................................................ 9 2
- BACKGROUND 3
- Figure 1 General and Special SDR 3
- Allocations 1970 - 2021 3
- Source International Monetary Fund 3
- RATIONALE 3
- OBJECTIVES 4
- THE ALLOCATION PROCESS OF 4
- THE SPECIAL DRAWING RIGHTS SDRs 4
- Figure 2 Global SDR Allocations 5
- THE UTILIZATION OF ZAMBIAS 5
- 2021 IMF SDR ALLOCATION 5
- UTILIZATION OF SDRs IN OTHER 6
- COUNTRIES 6
- POSSIBLE ALTERNATIVES FOR 7
- THE UTILIZATION OF THE SDRs 7
- Reduction and Growth Trust PRGT and the Resilience and Sustainability Trust RST 7
- Using SDRs for Purchasing Vaccines during Pandemics 8
- SDRs 9
- SDRs AS A DEBT RELIEF 9
- PACKAGE 9
- The G20-CF and SDRs 9
- The ECF and SDR 10
- THE REFORMATION OF THE SDR 10
- ALLOCATION AND RECHANNELLING SYSTEM 10
- CONCLUSION 11
- RECOMMENDATIONS 12
- REFERENCES 12
