G7 plans to raise 500 billion USD for Covid aid
(VOVWORLD) -G7 nations are considering whether to use the International Monetary Fund (IMF) to mobilize 500 billion USD in aid to the world's poorest nations to respond to the COVID-19 pandemic.
 African countries face many difficulties in COVID-19 prevention. (Photo: EPA) |
At an online meeting on Friday, the finance ministers and central bankers of the Group of Seven nations, Britain, Canada, France, Germany, Italy, Japan and the United States is likely to back a new allocation of 500 billion USD of the International Monetary Fund's own currency, or special drawing rights.
A new issuance is similar to when a central bank prints money as the new SDRs (Special Drawing Right) give each IMF member more reserves to draw on in proportion to their shareholding in the Fund.
In 2009, a special allocation of nearly 183 billion SDRs helped countries cope with the effects of the global financial crisis.