The IMF issues SDR allocations to the central banks of its member countries and member states could exchange it for hard currency with another central bank. If the member states cannot exchange the money, the IMF has the power to declare which state should accept the SDR allocation. As per the reports, so far, the IMF has allocated SDR 204.2 billion, which is roughly equivalent to $ 285 billion. Wijewardena explained further the receiving of $ 800 million SDR allocation from the IMF. He said the US is yet to reach an agreement with the IMF to purchase the new SDRs issued by the IMF to its member states.

Source: The Nation July 17, 2021 23:03 UTC