When you do a general SDR or increase SDR allocations, most of it goes to the countries that don’t need it. Gopinath said the IMF is discussing an alternative mechanism with its members under which wealthy countries that don’t need their SDRs can lend them to low-income countries. SDR is an international reserve asset comprising the dollar, euro, yen, sterling and yuan, and allocated to IMF members according to their quota. India has 13,114 million SDRs on account of its 2.76% quota while the US has 82,994 million SDRs due to its 17.45% quota. China with 6.41% quota has 30,483 million SDRs at the IMF.

Source: Hindustan Times June 10, 2020 02:35 UTC