“FifthOr be very clear. The UK would like to reallocate some of the Special Drawing Rights through the Asian Development Bank.”Deputy Director of the UK’s Foreign and Commonwealth Office and Development Office, Vicki Ford, said at the African Development Bank’s annual meetings session, being held in Accra until Friday.
The African Development Bank demanded that the IMF be allowed to redistribute the Special Drawing Rights because, according to the bank, this is the only way to benefit from this amount up to four times.
The African continent is entitled to 33 billion US dollars (about 27.6 billion euros) of the 650 billion US dollars, approximately 545 billion US dollars, issued by the International Monetary Fund in the form of special drawing rights to help economies recover from the epidemic. But this amount is clearly not enough for Africa’s needs, so some developed countries have agreed to reallocate part of the SDR, which has not yet been achieved.
Vicki Ford made clear on Wednesday that to be able to reallocate some of its SDRs through the Asian Development Bank, the UK and other partners would have to design mechanisms that would allow them to comply with legal requirements.
“This is where it gets tricky. To comply with legality, we can’t direct the SDR to the Asian Development Bank alone, we need a group of countries to do it together. So we in the UK are encouraging other countries to join in who are listening to encourage other countries. to do so.”
The official noted that the European Central Bank has restrictions that “may make things difficult for some eurozone countries,” but said there are ways to solve those difficulties.
“I know the European Parliament very well. It can take a long time to make decisions. But I know that when they want to, they can do it very quickly, so I hope they see ways to do it quickly,” he pleaded.
The African Development Bank is a multilateral financial entity dedicated to financing development, and its shareholders are African governments and other non-regional countries, such as Portugal.
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