According to Reuters, Yi Gang, governor of the People's Bank of China, wrote in an article in the Financial Times that the issuance of special drawing rights - the Fund's internal monetary unit - is necessary to help countries. On dealing with the Covid-19 pandemic.
Yi said the general allocation of special drawing rights, which is sometimes called gold water and can be created with a stroke of a pen, is the deficient part of the Fund's handling of the crisis. >
The last time the IMF made the move, which was similar to the central bank’s printing of new money, was in 2009 when it issued special drawing rights of $ 250 billion to member states. In order to mitigate the impact of the global financial crisis.
While such a move is backed by many senior economists and finance ministers and some former government leaders, its biggest opponent - the US Treasury - has veto power over big decisions in the IMF.
US Treasury Secretary Stephen Mnuchin says that most of the SDR money will go to the rich G20 countries that do not need them. The United States is also believed to be opposed to the move to prevent China and Iran from obtaining additional resources.
(Fun Knowledge of Knowledge)
