Devex Features Eric LeCompte on Yellen's Support for SDRs

Devex quotes Eric LeCompte on Yellen's letter to G20. Read an excerpt below, and click here for the full story.

In Brief: US Treasury indicates support for SDRs in letter to the G-20

By Adva Saldinger

The likelihood of a new issuance of International Monetary Fund Special Drawing Rights providing liquidity to low-income countries rose dramatically Thursday as the U.S. signaled its support.

In a letter to members of the G-20 group of nations, U.S. Treasury Secretary Janet Yellen said that a new allocation of SDRs could facilitate “much-needed health and economic recovery efforts” for low-income countries and that the U.S. looks forward to “discussing potential modalities for deploying SDRs.”

With the U.S. on board, it seems likely the G-20 will support a new issuance of SDRs. During former President Donald Trump’s administration, U.S. objections were a key hurdle. There seems to be a consensus around an issuance of at least $500 billion, which the Italian presidency of the G-20 supports. But advocates have pushed for much more — $3 trillion — and G-20 leaders are likely to wait for an IMF needs assessment before making their decision, Eric LeCompte, executive director at the Jubilee USA Network, told Devex.
Read the full article here.