The allocation of Special Drawing Rights (SDR) of the International Monetary Fund (IMF)While it will not substantially change the global macroeconomic outlook, it will give some countries a break, especially in Latin America, the Institute of International Finance (IIF) considered.
In a report on the subject, he highlighted that los DEG delayed doomsday for some distressed economies.
For example, the $ 950 million for Ecuador “offsets” roughly two-thirds of the $ 1.5 billion the country was projected to receive this year under its program with the IMF, which has been on hold since December.
In Central America, where the outlook is challenging, the SDR allocation gives countries space.
However, this favorable effect will depend on the degree of room for maneuver that it would give them because they would be delaying an invariable necessary adjustment as will be the case in Sri Lanka, he said. The same will happen, he said, in the case of Argentina.
He established that although everyone can use their SDR as they wish, there are exceptions such as Venezuela, since they will not be able to access theirs because there is no international consensus on who represents a government that can legitimately trade with Special Rights.
He warned that in some countries the use of international reserves to finance fiscal deficits is not possible.
Read also: SDRs are not extraordinary income and debt cannot be paid, says Citibanamex
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