“I will be very clear, the United Kingdom would like to transfer part of its special drawing rights (SDR) to Africa through the African Development Bank”, announced Vicky Ford, British Minister for the Africa, America latin and the Caribbean, at the 2022 Annual Meetings of the African Development Bank Group (AfDB) in Accra in May.
A statement reiterated on June 27, which recalls that many other developed countries have also indicated that they want to transfer their SDRs to African countries. Recently, Akinwumi Adesina, President of the AfDB, also stressed that he was “in talks with Canada and France” on this subject. Yet despite all these announcements, nothing has the moment been materialized.
African debt: what have the billions of the IMF been used for?
As a reminder, SDRs are international reserve assets created in 1969 by which the IMF supplements the official reserves of its member states without creating additional debt. The value of the SDR is determined in relation to a basket of currencies, the composition of which is reviewed every five years.