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IMF Special Drawing Rights: 110 billion CFA francs for Togo

07/09/2021
Categories: Economy/Forex

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The Special Drawing Rights (SDR) allocation from the International Monetary Fund (IMF) has taken effect. In the 650 billion dollars, Togo obtains an envelope of 110 billion CFA francs.

This allocation is a real injection into the arm of the world economy and, if used wisely, a unique opportunity to overcome this unprecedented crisis. It will provide additional liquidity to the global economic system, supplementing countries' foreign exchange reserves and reducing their dependence on more costly domestic or external debt. Countries can use the space thus created to support their economy and step up their fight against the crisis. Togo will thus receive 140.7 million SDRs, equivalent to 110 billion CFA francs. SDRs are distributed to countries in proportion to their IMF quotas. To help recipient countries and ensure compliance with the principles of transparency and accountability, the IMF offers a mechanism to assess the macroeconomic implications of the new allocation, its statistical treatment and its governance, as well as how it could affect debt sustainability.

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