The International Monetary Fund (IMF) will allocate special drawing rights (SDRs) worth an equivalent $2.7 billion for Indonesia as part of its measures to strengthen global liquidity in 2009, Bank Indonesia (BI) said, Reuters reported.
“The allocation is for all member countries of the IMF and is part of global efforts to tackle the (current economic) crisis through the availability of global liquidity,” BI deputy governor Hartadi Sarwono said in a statement. The use of the facility is without conditions, BI said, and is different from an IMF loan facility extended to Indonesia to rescue the country during the Asian financial crisis of 1997-1998.
The IMF facility will increase Indonesia's foreign exchange reserves by 1.74 billion worth of SDRs equivalent to $2.70 billion, he said. Indonesia's foreign exchange reserves stood at $57.4 billion in July.
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries' official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies.
Source: Trade & Investment News, 24 Aug. 09