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India to get SDRs worth $4.78 billion as IMF boosts member reserves news
14 August 2009

India will get $4.78 billion in additional Special Drawing Rights (SDRs) by 28 August with the International Monetary Fund (IMF) finalising a $250 billion boost to the recession-hit global economic system.

On 7 August, the board of governors of the International Monetary Fund (IMF) approved a general allocation of Special Drawing Rights (SDRs) equivalent to $250 billion to provide liquidity to the global economic system by supplementing Fund's member countries' foreign exchange reserves.

The IMF executive board had, last month, backed the general allocation, following the commitment made by G20 leaders at their April summit to boost global liquidity.

Of the total $250 billion worth of SDR allocation, nearly $100 billion worth will go to emerging markets and developing countries, with low-income countries receiving over $18 billion.

The general SDR allocation will be made on 28 August to IMF members that are participants in the Special Drawing Rights Department (currently all 186 members) in proportion to their existing quotas in the fund, which are based broadly on their relative size in the global economy.

The allocation will provide each participating country with SDRs in amounts equivalent to approximately 74 per cent of its quota, and could increase Fund members' total allocations to an amount equivalent to about $283 billion, from about $33 billion (SDR 21.4 billion).

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India to get SDRs worth $4.78 billion as IMF boosts member reserves