Ecuador will receive USD 1,000 million from the IMF

Guillermo Avellán, manager of the Central Bank of Ecuador, reported that Ecuador expects to receive USD 1,000 million from the International Monetary Fund, during the last months of this 2021.

In his statements on Tuesday, July 6, the official explained that this disbursement “has no cost or conditions” and is part of an IMF asset, which must be converted into dollars.

Avellán clarified that this amount will be received by the Ministry of Finance. He also added that the Government holds meetings with this multilateral on the receipt of these digital currencies.

For this electronic money to materialize, I detail, the Central Bank must make a request to the IMF to find another central bank of a country interested in buying the SDRs of Ecuador and, thus, converting them to dollars.

In this project promoted by the IMF In total, it is expected to inject USD 650 trillion into 84 low-income countries, including Ecuador.

The Manager of the Central Bank indicated that he must sign an agreement with Finance on the use that will be given to the USD 1,000 million that are expected and that will be freely available.

Avellán anticipated that the destination will be to strengthen the country’s international reserves and cover part of public spending.

“The idea is that by the end of this year Ecuador can end up with reserves of more than USD 6 billion,” which will make it possible to strengthen dollarization, Avellán concluded.

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