IMF: Ghana’s $1 billion SDR allocation hits BoG’s account
Information reaching norvanreports indicates that the $1 billion Special Drawing Rights (SDR) allocated to Ghana by the International Monetary Fund (IMF) has hit the accounts of the Bank of Ghana (BoG).
Norvanreports also understands that the loan facility comes at a zero interest rate and as such Ghana will only make a repayment of the principal amount to the Bretton Wood institution.
Ghana’s $1 billion SDR allocation follows the approval of the historic $650 billion SDR allocation by the Board of Governors of the IMF at the start of August 2020, for the members of the IMF to help boost global liquidity.
Special Drawing Rights (SDRs) can be described as an international reserve asset created by the IMF to supplement the official reserves of its member countries.
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The SDRs of countries can be used to access the freely usable currencies of IMF members. As such, SDRs can provide a country with liquidity.
The loan facility, the Minister for Finance, Ken Ofori-Atta has said, will be used to fully support the recovery of the economy.
According to him, government is considering directing the funds to sectors that will aid in job creation as well some areas under the Ghana Cares Programme.
At the same time, areas such as improving revenue mobilization and digitalization of the economy is being prioritised.
