[UPDATED] Imbert: Forex reserves now over US$7 billion

FINANCE Minister Colm Imbert has said TT’s total foreign reserves are now over US$7 billion.

In a tweet on Tuesday, Imbert said, “TT’s foreign reserves have just been boosted by the equivalent of US$644 million, as a result of a global distribution by the IMF (International Monetary Fund) of Special Drawing Rights (SDR).”

He said this was designed to help countries cope with the forex (foreign exchange) demands of covid19.

As a result, he said, TT’s net foreign reserves were now back over US$7 billion.

In a subsequent tweet, Imbert said, “The US$644 million in additional SDRs from the IMF gives the Government more flexibility to inject US dollars into the commercial banking sector for distribution to the public and to make more forex available through the EximBank to the manufacturing sector and to importers of essential goods.”

In a statement on August 2, the IMF said its board of governors had approved a general allocation of SDRs equivalent to US$650 billion to boost global liquidity.

IMF managing director Kristalina Georgieva said, “This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis.”

She added, “The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.

“It will particularly help our most vulnerable countries struggling to cope with the impact of the covid19 crisis.”

The IMF said the general allocation of SDRs will become effective on August 23.

“The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the fund.”

TT has been a member of the IMF since September 16, 1963. The IMF has a total membership of 190 countries.

The IMF said approximately US$275 billion of the new allocation will go to emerging markets and developing countries, including low-income countries.

Georgieva said, “We will also continue to engage actively with our membership to identify viable options for voluntary channelling of SDRs from wealthier to poorer and more vulnerable member countries to support their pandemic recovery and achieve resilient and sustainable growth.”

This story has been adjusted to include additional details. See original post below.

FINANCE Minister Colm Imbert has said Trinidad and Tobago's total foreign reserves are now over US$7 billion.

In a tweet on Tuesday, Imbert said, "TT's foreign reserves have just been boosted by the equivalent of US$644 million, as a result of a global distribution by the IMF (International Monetary Fund) of Special Drawing Rights (SDR)."

He said this was designed to help countries cope with the forex (foreign exchange) demands of covid19.

AS a result, he said, TT's net foreign reserves were now back over US$7 billion.

In a statement on August 2, the IMF said its board of governors had approved a general allocation of SDRs equivalent to US$650 billion to boost global liquidity

IMF managing director Kristalina Georgieva said, "This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis."

She added, "The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.

"It will particularly help our most vulnerable countries struggling to cope with the impact of the covid19 crisis."

The IMF said the general allocation of SDRs will become effective on August 23.

"The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the fund."

TT has been a member of the IMF since September 16, 1963. The IMF has a total membership of 190 countries.

The IMF said approximately US$275 billion of the new allocation will go to emerging markets and developing countries, including low-income countries.

Georgieva said, "“We will also continue to engage actively with our membership to identify viable options for voluntary channeling of SDRs from wealthier to poorer and more vulnerable member countries to support their pandemic recovery and achieve resilient and sustainable growth."