The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.
The SDR is not a currency. It is a potential claim on the freely usable currencies of IMF members. As such, SDRs can provide a country with liquidity.
A basket of currencies defines the SDR: the US dollar, Euro, Chinese Yuan, Japanese Yen, and the British Pound.
Since the onset of the pandemic, SDR channeling (and equivalent currency amounts) has helped many countries in need, especially those eligible for financial support from the IMF’s Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust (RST).
Since 2020, channeling of about $56 billion is providing the PRGT with the capacity to mobilize $40 billion in interest-free loans to our poorest members through 2024. This financing helps support growth enhancing reforms in these countries. So far, these loans have benefited 57 countries and could benefit more in the years ahead.
Channeling has also supported the operations of the RST, which delivers affordable long-term financing to help vulnerable countries tackle long-term challenges including climate change. To date, 23 RST partners have channeled about $49 billion to the RST, which is expected to contribute toward meeting an estimated $29 billion in affordable financing.
Following the January 14 presidential election, President Azali announced a new cabinet in July, introducing several new and youthful faces into the political scene. Amid this political transition, Comoros’ economy is showing signs of softening coupled with inflationary pressures driven by accelerating food prices. Credit to the private sector has slowed throughout this year as importers deleveraged following the significant ramp-up in borrowing over the last two years to meet high import prices. Import volumes—notably food products—have declined during 2024H1 while exports and public investment have both been lower than expected. Tax revenue administration efforts were hampered by post-elections unrest, the cholera epidemic, and severe weather events during the first half of 2024. Nonetheless, the external sector remains stable with adequate reserve cover above 7 months of imports.
Zambia faces a severe drought, sharply reducing agricultural and electricity output and leading to extensive load shedding. In response, the authorities expanded social cash transfers to support affected households. Multilateral financing has eased fiscal and balance of payments pressures. Despite these challenges, policy adjustment and reforms are supporting macro stability and fiscal and debt sustainability.
Chad is a fragile state facing daunting development challenges. One of the least developed countries in the world, it has been affected by severe shocks, including floods, the continuous arrival of refugees from Sudan, security threats, and food insecurity. With the end of the political transition period, the authorities committed to tackle these challenges, including through broadening access to public services, strengthening governance, and improving the business environment. The preparation of their national development plan (PND) will be an opportunity to articulate the macroeconomic policies and reforms that they intend to implement over the medium term to reach these objectives.
Spillovers from the war in Sudan have worsened South Sudan’s macroeconomic imbalances and exacerbated an already-dire humanitarian situation. A pipeline carrying 70 percent of South Sudan’s oil production through Sudan has been inoperable since February 2024 and repairs have taken longer than expected owing to restricted access to the concerned areas. This has caused a sharp drop in economic growth, exports, fiscal revenue, and FX inflows and led to difficult policy challenges including high inflation, rapid parallel market exchange rate (ER) depreciation, and budget financing constraints. To cope with the shock, the authorities incurred salary arrears and monetary financing, in the face of limited alternative financing, as well as delaying the official ER adjustment. Nearly two-thirds of South Sudan’s population was exposed to acute food insecurity prior to the Sudan conflict and the situation has worsened due to floodings and a growing number of refugees. The national unity government which has been in place since 2018, consistent with the peace treaty, recently announced that the elections initially planned for December 22, 2024 have been postponed by two years. Program review.
Economic growth remains strong, driven by robust domestic activity. Inflation has moderated sharply with lower tradables prices. Relatively high oil prices support high fiscal and external balances and significant sovereign buffers. Banks have ample capital and liquidity buffers overall, and real estate activity remains buoyant. Substantial reform- and climate-related initiatives and investment spending continue.
Growth gathered momentum in 2023 on the back of recovering external demand, but exchange rate depreciation continues and inflation remains persistently high. Labor and FX shortages are intensifying. Public debt is assessed to be unsustainable, despite a tight fiscal stance. FX reserves remain low.
Following the January 14 presidential election, President Azali announced a new cabinet in July, introducing several new and youthful faces into the political scene. Amid this political transition, Comoros’ economy is showing signs of softening coupled with inflationary pressures driven by accelerating food prices. Credit to the private sector has slowed throughout this year as importers deleveraged following the significant ramp-up in borrowing over the last two years to meet high import prices. Import volumes—notably food products—have declined during 2024H1 while exports and public investment have both been lower than expected. Tax revenue administration efforts were hampered by post-elections unrest, the cholera epidemic, and severe weather events during the first half of 2024. Nonetheless, the external sector remains stable with adequate reserve cover above 7 months of imports.
Zambia faces a severe drought, sharply reducing agricultural and electricity output and leading to extensive load shedding. In response, the authorities expanded social cash transfers to support affected households. Multilateral financing has eased fiscal and balance of payments pressures. Despite these challenges, policy adjustment and reforms are supporting macro stability and fiscal and debt sustainability.
Chad is a fragile state facing daunting development challenges. One of the least developed countries in the world, it has been affected by severe shocks, including floods, the continuous arrival of refugees from Sudan, security threats, and food insecurity. With the end of the political transition period, the authorities committed to tackle these challenges, including through broadening access to public services, strengthening governance, and improving the business environment. The preparation of their national development plan (PND) will be an opportunity to articulate the macroeconomic policies and reforms that they intend to implement over the medium term to reach these objectives.
Spillovers from the war in Sudan have worsened South Sudan’s macroeconomic imbalances and exacerbated an already-dire humanitarian situation. A pipeline carrying 70 percent of South Sudan’s oil production through Sudan has been inoperable since February 2024 and repairs have taken longer than expected owing to restricted access to the concerned areas. This has caused a sharp drop in economic growth, exports, fiscal revenue, and FX inflows and led to difficult policy challenges including high inflation, rapid parallel market exchange rate (ER) depreciation, and budget financing constraints. To cope with the shock, the authorities incurred salary arrears and monetary financing, in the face of limited alternative financing, as well as delaying the official ER adjustment. Nearly two-thirds of South Sudan’s population was exposed to acute food insecurity prior to the Sudan conflict and the situation has worsened due to floodings and a growing number of refugees. The national unity government which has been in place since 2018, consistent with the peace treaty, recently announced that the elections initially planned for December 22, 2024 have been postponed by two years. Program review.
Economic growth remains strong, driven by robust domestic activity. Inflation has moderated sharply with lower tradables prices. Relatively high oil prices support high fiscal and external balances and significant sovereign buffers. Banks have ample capital and liquidity buffers overall, and real estate activity remains buoyant. Substantial reform- and climate-related initiatives and investment spending continue.
Growth gathered momentum in 2023 on the back of recovering external demand, but exchange rate depreciation continues and inflation remains persistently high. Labor and FX shortages are intensifying. Public debt is assessed to be unsustainable, despite a tight fiscal stance. FX reserves remain low.
