Five nations mulling option of channeling SDRs, AfDB head says

African Development Bank would leverage funds four times

23-Sep-2022

By Eric Martin, September 22, 2022

Original story :https://www.bloomberg.com/news/articles/2022-09-22/japan-uk-keen-to-channel-imf-support-through-top-african-lender

Japan, France and the UK are among five wealthy nations that have shown interest in channeling their rights to International Monetary Fund reserve assets to Africa's top development lender, which would boost the bank's ability to support poorer countries.

"We're getting positive signals about their willingness to consider giving it to us," African Development Bank President Akinwumi Adesina said in an interview in Bloomberg's New York office Thursday. "The UK was very clear that they want to do that. Japan has been very supportive in that conversation," he said, adding that France is leading efforts, while Saudi Arabia and Canada are in talks with the lender.

The IMF's record $650 billion issuance of reserve assets known as special drawing rights, or SDRs, to its member nations last August went toward helping them with mounting debt and the fallout from the Covid-19 pandemic.

IMF Members' Reserves Dry Up

More than 30 nations have used 90% or more of their latest SDR allocations