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International Monetary System

Answer

The IMF Special Drawing Right (SDR) is an international reserve asset designed to supplement the official reserves of IMF member countries. SDRs are allocated to members, including the UK, in proportion to their IMF quota shares. HMG therefore holds SDRs as part of the UK’s international reserves.

The UK strongly supports the proposed new $650bn SDR allocation and has urged its implementation by the end of August. The UK also strongly supports the G7’s ambition to significantly magnify the impact of the allocation to reach a total global ambition of $100bn to the countries most in need.

The UK together with other G7 members has called on the IMF to work quickly to explore a menu of options for the voluntary channelling of SDRs to further support health needs and to help enable greener, more robust recoveries in the poorest and most vulnerable countries. G20 Finance Ministers and Central Bank Governors have also committed to explore options to channel SDRs to support resilient, inclusive and sustainable recoveries.

As COP26 Presidency, the UK is committed to delivering climate ambition ahead of and beyond the conference, including strong efforts on emissions reduction and ensuring there is finance flowing for mitigation and adaptation globally.

The UK has committed to contribute £1.44bn to the Green Climate Fund from 2019-2023, which will support projects that reduce emissions and help people adapt to the impacts of climate change.

Secondary information

Type

Written question

Reference

29768

Session

2021-22

Grouped for answer

Yes

Subjects

International monetary system Green Climate Fund

Link

View this Written question on www.parliament.uk