This report analyses the utilisation of the IMF’s Special Drawing Rights (SDRs) in an selection of African countries. The authors compare various proposals for rechanneling SDRs for resiliency, sustainability, poverty reduction and growth.
Rechanneling SDRs via the IMF contributes to additional loans to low-and middle-income countries. However, these loans come with certain conditions.
It is of essence to find tools for a new global financial architecture, specifically through reforming SDR quotas to match the needs in low- and middle income countries. In the report, the Hybrid Capital Instrument, is provided as an example.
The organisations behind the report
Sustainable Finance Lab is a transdisciplinary research center established to transform financial markets and to enhance the sustainable development of society.
The Global Challenges Foundation has provided funding for “An African Perspective on IMF Special Drawing Rights Rechanneling Proposals: Opportunities and Challenges”.