KARACHI:Pakistan’s foreign exchange reserves have jumped to $27.4 billion after the transfer of $2.75 billion dollar by the IMF.
#SBP has received US$ 2.75 billion from the IMF, as part of SDR allocation announced by IMF recently.— SBP (@StateBank_Pak) August 24, 2021
As per the state bank of Pakistan, the country has received $2.75 billion from the International Monetary Fund (IMF).
The country has received 2.75 billion US dollars from the IMF as part of the SDR allocation.
Created in 1969, SDRs are not a currency and have no material existence.
Their value is based on a basket of five major international currencies: the dollar, the euro, the pound, the renminbi or yuan, and the yen.
Today, IMF member countries receive their shares of the new $650 billion #SDRs allocation—the largest in history!— Kristalina Georgieva (@KGeorgieva) August 23, 2021
This is a pivotal moment in our fight against the pandemic.
See my @FT op-ed on how to make the most of this opportunity: https://t.co/jd4XYg8yWT pic.twitter.com/J4e3K7SctI
Once issued, SDRs can be used either as a reserve currency that stabilizes the value of a country’s domestic currency or converted into stronger currencies to finance investments.
For poorer countries, the interest is also to obtain hard currencies without having to pay substantial interest rates.