Reuters Quotes Eric LeCompte on Yellen's Support for a New SDR Allocation

Reuters quotes Eric LeCompte on Yellen's support for a new Special Drawing Rights allocation to help poor countries. Read an excerpt below, and click here for the full story.

Yellen backs new allocation of IMF's SDR currency to help poor nations

By Andrea Shalal and David Lawder

U.S. Treasury Secretary Janet Yellen on Thursday threw her support behind a new allocation of the IMF’s own currency, or Special Drawing Rights, but said broad parameters were needed to boost transparency on how the reserves are used and traded.

Yellen said an SDR allocation and steps to boost low- and zero-interest lending by the International Monetary Fund and the World Bank would boost efforts to contain the pandemic and mitigate its devastating impact, particularly in poor countries.

Yellen also encouraged G20 members to use excess SDRs to support recovery efforts in low income countries, along with continued bilateral aid. She said she looked forward to discussing potential modalities for deploying SDRs.

Eric LeCompte, executive director of Jubilee USA Network, which has coordinated letters backing an allocation, said Yellen’s letter was “incredibly positive news.”

Read the full article here.