This Monday, August 23, the International Monetary Fund (IMF) will make an allocation in Special Drawing Rights (SDR) for all its member countries for a total of USD 650,000 million. In this sense, the multilateral organization asserted that this same day Ecuador will receive its allocation, which would be around USD 1 billion.
The exact value will be known this August 23, because there is a difference that must be calculated by the negotiation that took place on the day of the negotiation. Although the ECB assumes that the value would be USD 950 million, more variable, in addition, it would take Ecuador approximately 10 days to convert those papers into dollars.
As indicated by the Central Bank, the sale process is carried out with central banks worldwide and the operations are settled on the balance sheets of the IMF, in its capacity as a SDR issuing entity.
In the same way, although these USD 1 billion do not represent an obligation to the State, once the assets of the SDR are made liquid, there will be a minimum financial cost for the country; since an accounting mismatch is generated (money no longer exists as an asset, but the obligation with the IMF’s SDR department remains) which produces interest that Ecuador must cover.
Given this, the former candidate for the Presidency of Ecuador, Andrés Arauz, affirmed that this money, which comes from the IMF, is part of an initiative promoted by the progressive governments, in addition, that they should not be used as liabilities but as a financial outlet to the current economic crisis.
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