Lebanon is set to receive $1.35 billion in exchange for SDRs from the IMF. (Credit: AFP)
BEIRUT – Lebanon is set to receive $1.135 billion in exchange for Special Drawing Rights from the International Monetary Fund, a Finance Ministry spokesperson told L’Orient Today. The amount will be deposited to Lebanon’s central bank on Sept. 16. However, how the money will be used or allocated will be determined by the government, the spokesperson said.
Here’s what we know:
• In August, Lebanon received an allocation of SDRs worth $860 million from the IMF.
• The new allocation of the IMF’s reserve currency announced today includes the $860 million from 2021 and $275 million from 2009, the spokesperson said.
• “The Finance Ministry has asked the International Monetary Fund to transfer the Special Drawing Rights available to Lebanon, particularly those belonging to the year 2009,” a statement from the ministry said.
• SDRs are an international reserve asset maintained by the IMF to supplement central bank reserves in its member states. They are not a cash or a loan but member states like Lebanon can exchange their portion of SDRs for foreign currency with other IMF members to help pay for financial needs. This is done on a voluntary basis.
• The IMF could not immediately be reached for comment.
Correction: A previous version of this article mistakenly stated that Lebanon would receive $1.35 billion in exchange for its SDRs. The correct total is $1.135 billion.