As part of measures to combat the world economic crisis, The International Monetary Fund (IMF)'s executive board has backed an allocation of equivalent to $250 billion Special Drawing Rights (SDRs) - an IMF reserve asset in-order to provide liquidity to the global economic system by supplementing 186 member countries' foreign exchange reserves.
Of the $250 billion SDRs an equivalent of nearly $100 billion will be allocated to emerging markets and developing countries, of which low-income countries will receive over $18 billion.
The proposal which was backed by the executive board on July 20 will now be submitted to the IMF's Board of Governors for final approval.
"The SDR allocation is a key part of the Fund's response to the global crisis, offering significant support to its members in these difficult times," IMF Managing Director Dominique Strauss-Kahn said.
The SDR allocation was requested as part of a $1.1 trillion plan agreed at the G20 summit in London in April and endorsed by the International Monetary and Financial Committee (IMFC) to tackle the global financial and economic crisis by restoring credit, growth and jobs in the world economy.
The SDR allocation will be in effect on August, 28, if approved by the board of governors with an 85 per cent majority before August 7.