In an effort to address urgent financing needs and advance sustainable development of countries in the era of COVID-19 and beyond, President Muhammadu Buhari has called for the reallocation of unused International Monetary Fund (IMF) reserve assets also known as Special Drawing Rights (SDRs), currently held by developed countries, to support recovery efforts in developing economies.
The President, represented by Vice President Yemi Osinbajo, SAN, stated this yesterday at the virtual high-level meeting of Heads of State and Government on financing the 2030 Agenda for Sustainable Development in the era of COVID-19 and beyond.
According to a statement by presidential spokesman, Laolu Akande, the SDR is an international reserve asset created by the International Monetary Fund (IMF) to supplement its member-countries’ official reserves. The facility was designed to help in stabilising the global economy during financial shocks and IMF member-countries had previously contributed to make up the reserve totaling about $204B.
And since the global financial shocks that followed the COVID-19 pandemic, some developing countries including Nigeria had called for its contribution. However as at last month, there was still an estimated $176B balance from the asset belonging to developed countries who have not used their contributions.
According to the President, “COVID-19 pandemic has severely disrupted our societies and economies, worsened inequalities, and deepened the gap between available resources and the resources needed to finance the Sustainable Development Goals. We must mobilise finance in response to this pandemic induced economic crisis and for long-term development.