{"id":560653,"date":"2021-03-08T04:09:24","date_gmt":"2021-03-08T04:09:24","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/"},"modified":"2021-03-08T04:09:24","modified_gmt":"2021-03-08T04:09:24","slug":"have-a-helping-of-sdrs","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/","title":{"rendered":"Have a helping of SDRs"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-03\"><\/a> <strong>Egypt is among the countries that stand to benefit the most from an IMF proposal<\/strong><strong> to earmark another USD 500 bn in Special Drawing Rights<\/strong> (SDRs) \u2014 the IMF\u2019s artificial currency made up of unequal parts USD, EUR, RMB, JPY, and GBP, Barclays said in a note yesterday, according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-03-07\/barclays-counts-benefits-for-em-of-500-billion-imf-reserve-plan\">Bloomberg<\/a>. The business information service says the SDRs could help countries including Bahrain, Saudi Arabia and South Africa cushion their FX reserves. Emerging market countries would only account for USD 206 bn of the new allocations at most, according to Barclays.<\/p>\n<p><strong>Egypt\u2019s foreign reserves are inching back up to their February 2020 peak<\/strong>, when they had reached USD 45.5 bn. Central bank figures <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7b7c0349-0e02-47a3-ab71-b966879240b6\">released yesterday<\/a> showed our reserves are currently at USD 40.2 bn.<\/p>\n<p><strong>What exactly are SDRs, again?<\/strong> <a href=\"https:\/\/www.imf.org\/en\/About\/Factsheets\/Sheets\/2016\/08\/01\/14\/51\/Special-Drawing-Right-SDR\">SDRs<\/a> act as a kind of international reserve currency or asset designed to act as a supplement to IMF member countries\u2019 reserves. They were created in 1969 to create an alternative to gold and USD as the only two global reserve assets. While not currencies in themselves, SDRs are held by the fund\u2019s member countries as a way to hedge against their reliance on costly debt to build up stocks of foreign reserves.<\/p>\n<p><strong>Background:<\/strong> The potential new SDR allocation was first floated by the UN <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/9d0ed0fc-a156-4953-9408-15d459d93c02\">a year ago<\/a>, when emerging markets began running to the IMF for emergency assistance as the reality of the covid-19 economic crisis began to settle in. The Trump administration shot down a proposal for the new issuance <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/e2f1d260-e322-4c4b-9764-8043d5cc2720\">last April<\/a>, saying it would actually not be beneficial for the countries that need it most. Former US Treasury Secretary Steven Mnuchin suggested at the time that, because SDRs are allocated based on shareholding proportions, G20 countries would actually get the vast majority of the new SDRs, while the poorest developing countries would only get around 3%. Current Treasury Secretary Janet Yellen <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/af214fd5-5918-46c5-aed3-db02f1c55ef6\">recently came out in support<\/a> of the issuance, but called for new parameters to ensure the transparent use of the Fund\u2019s reserves.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egypt is among the countries that stand to benefit the most from an IMF proposal to earmark another USD 500 bn in Special Drawing Rights (SDRs) \u2014 the IMF\u2019s artificial currency made up of unequal parts USD, EUR, RMB, JPY, and GBP, Barclays said in a note yesterday, according to Bloomberg. The business information service [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":560654,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[104,115,72,655,272,3796],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-560653","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-emerging-markets","tag-enterpriseam","tag-foreign-reserves","tag-imf","tag-sdrs","wpautop","entry"],"acf":{"mongo_id":"f015b9d6-2861-4d65-bdd3-e8dcea2d822d","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/3\/125.jpg","photo_position":"above","related_issue":[560646],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Have a helping of SDRs - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Have a helping of SDRs\" \/>\n<meta property=\"og:description\" content=\"Egypt is among the countries that stand to benefit the most from an IMF proposal to earmark another USD 500 bn in Special Drawing Rights (SDRs) \u2014 the IMF\u2019s artificial currency made up of unequal parts USD, EUR, RMB, JPY, and GBP, Barclays said in a note yesterday, according to Bloomberg. The business information service [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-08T04:09:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2021\/3\/125.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Have a helping of SDRs\",\"datePublished\":\"2021-03-08T04:09:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/\"},\"wordCount\":336,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2021\/3\/125.jpg?fit=%2C&ssl=1\",\"keywords\":[\"economy\",\"emerging markets\",\"EnterpriseAM\",\"foreign reserves\",\"IMF\",\"SDRs\"],\"articleSection\":[\"Economy\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/08\/have-a-helping-of-sdrs\/\",\"name\":\"Have a helping of SDRs - 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USD 2.8 bn through the IMF\u2019s new SDR allocation, which came into effect on 23 August: The International Monetary Fund (IMF) announced the disbursal of almost USD 650 bn in new special drawing rights (SDRs) \u2014 the largest allocation in\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/256.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":656703,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/12\/09\/egypts-foreign-reserves-inches-up-usd-10-5-mn-usd-47-0-bn-in-november\/","url_meta":{"origin":560653,"position":1},"title":"Egypt\u2019s foreign reserves inches up USD 10.5 mn USD 47.0 bn in November","author":"enterpriseam admin","date":"9 December 2024","format":false,"excerpt":"FX reserves rose to USD 36 bn in November","rel":"","context":"In 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