## A Shot in the Arm—How Special Drawing Rights Can Help Struggling Countries

_IMF Blog, August 26, 2021_

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**Canonical URL:** [A Shot in the Arm—How Special Drawing Rights Can Help Struggling Countries](https://www.imf.org/en/blogs/articles/2021/08/26/a-shot-in-the-arm-how-special-drawing-rights-can-help-struggling-countries)

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## Bibliographic details
- Authors: The Editors
- Published: August 26, 2021

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### Overview of the SDR allocation
- The largest allocation of Special Drawing Rights, or SDRs, in history—about $650 billion—came into effect earlier this week.
- The allocation is described as "a significant shot in the arm for the world" and "a unique opportunity to combat this unprecedented crisis" if used wisely.

### How SDRs provide support
- SDRs will provide additional liquidity to the global economic system—supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt.
- Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis.

### Distribution and impact by country group
- SDRs are being distributed to countries in proportion to their quota shares in the IMF.
- About $275 billion is going to emerging and developing countries.
- Low-income countries will receive about $21 billion—equivalent to as much as 6 percent of GDP in some cases.

### Further information and engagement
- Read more about the historic allocation and how many of the IMF’s poorest member countries can benefit.
- Podcast: IMF Podcasts · What $650bn in SDRs Means for the Global Recovery — featuring Ceyla Pazarbasioglu, head of the Strategy, Policy and Review Department at the IMF.
- Engagement: "We want to hear from you! Click here for a 3-question survey on IMFBlog."

*Source: A Shot in the Arm—How Special Drawing Rights Can Help Struggling Countries (The Editors, August 26, 2021)*

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## References

- [SDRs](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR)
- [Read more](https://www.imf.org/en/News/Articles/2021/08/23/pr21248-imf-managing-director-announces-the-us-650-billion-sdr-allocation-comes-into-effect)

_Source: https://www.imf.org/en/blogs/articles/2021/08/26/a-shot-in-the-arm-how-special-drawing-rights-can-help-struggling-countries_