The market value of the IMF’s gold—about US$170 billion at end 2020—far exceeds its historic cost on the Fund’s balance sheet of under $5 billion. Not surprisingly, this has led some to see the IMF’s gold as a “free” resource that should be tapped to meet pressing global needs. And these calls have become louder as the demands of meeting new challenges—from climate change to the pandemic—have confronted flat or shrinking aid budgets.
CGD Policy Blogs
As global leaders begin to put together an international financing package to help low-income countries (LICs) recover from the COVID-19 crisis, they are looking to the International Monetary Fund (IMF) to be a critical financial and policy anchor for LIC’s sustainable economic recovery. We propose a five-step plan that ensures sufficient resources are available to meet a high level of demand for new loans over the next few years.
Last week President Biden announced sweeping measures to reengage the US government in the fight against climate change. With US Special Envoy for Climate John Kerry suggesting the need for “humility and ambition,” we suggest five ways for the new US administration to be more ambitious on the international stage.
With the Biden administration now setting US development policy, there are increased hopes for an new allocation of Special Drawing Rights (SDRs) from the IMF. One sticking point continues to be the distribution of the new SDRs.
On January 25, the African Center for Economic Transformation (ACET) and CGD convened a panel of seven experts, including from government, the private sector, and financing partners, to discuss the potential for increasing DRM in the aftermath of the COVID-19 health and economic crises.