United States and IMF together to help economies hit by pandemic

United States and IMF together to help economies hit by pandemic
United States and IMF together to help economies hit by pandemic

(Teleborsa) – The US Treasury Department together with the IMF is considering providing foreign currency aid up to a maximum of 650 billion dollars to the countries hardest hit by the Covid-19 pandemic. The US Treasury Department said this, recalling that the COVID-19 pandemic had an exceptional impact on the global economy, which contracted by 3.5% in 2020, and put a strain on financial liquidity.

In this framework l‘IMF expects a sharp divergence in growth prospects economies of advanced economies and low-income and developing countries and estimates that 150 economies will have per capita incomes in 2021 below pre-pandemic levels.

Aid will be provided to the most disadvantaged economies through the allocation of Special Drawing Rights (SDR) IMF, which is reserve assets that countries can use to supplement their foreign currency assets, such as gold and US dollars.

This measure – it is emphasized – would help create capital reserves, adjust adjustments e mitigate the risks of economic stagnation in global growth. It could then aincrease liquidity of low-income and developing countries to facilitate their efforts in health policies (including vaccines).

“Containing the pandemic around the world is critical to a robust economic recovery”, the US Treasury points out, recalling that “a strong global recovery would also increase demand for US exports of goods and services, for job creation and to support businesses “.

“An SDR allocation is not a universal solution. – it is underlined – It is part of a package of broader international efforts to support global recovery”

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