By Zayamu Hassan
Out of the 650 billion dollars approved by the Board of Governors of the International Monetary Fund (IMF) as Special Drawing Rights (SDR) to developing and low-income countries, Nigeria, will get 3.35 billion dollars.
IMF Resident Representative in Nigeria, Ari Arisen, stated this in an interview with CNCBAfrica.
Out of the amount, however, about $275 billion is expected to go to the emerging markets and developing, including low income countries.
The 650 billion dollars, according to the official, is the highest allocation of SDR in the history of IMF to all the countries.
42 per cent of the amount, he further revealed, goes to Arab league and low income developing emerging countries.
“This is a short SDR to all the economies. It boosts liquidity, it provides available resources and foreign exchange to all the countries of the world so that they can support recovery and face any challenge they may be having because of the unprecedented COVID-19 challenge.
“It’s a crucial development to help our member countries facing challenging times by providing new foreign exchange and liquidity to their economies,” he said.
On the implication the fund will have on Nigeria in particular, he said: “For example, you could use some of the foreign exchange to import vaccines if you need. This is very important. There is a sovereign decision for each country how to use those funds.
“In the case of Nigeria, it will help boost the foreign exchange reserve of the Central Bank. Every country will get in proportion to their quota at the IMF.
“Nigeria will be getting about 3.35 billion dollars. That will be an immediate boost of the foreign exchange reserve at the CBN.
“What it further means is that, it will increase the foreign reserve of Nigeria for it to make good use of it.
“We are stressing and emphasizing that all our member countries who are receiving have a right to make a sovereign decision where to use those funds but the decision needs to be wise and for the benefit of the country and its population.”
Speaking on the need for accountability and transparency in utilizing the funds, the official said: “So, we are calling on domestic and international partners to work with us and ensure transparency and accountability on the use of those funds.
“This is very important in Nigeria and other countries of the world. We have the expectation that the Nigerian authorities will use the funds wisely.”
