IMF Chief Wants Trust for Middle-Income Nations Set by Year-End

The video discusses the increased reserve requirements due to the COVID crisis, leading to a $650 billion SDR allocation to support countries with limited reserves. It highlights the need to redirect SDRs from countries with strong reserves to those in need, with G7 support for $100 billion in redirection. The video also covers plans to expand SDR beneficiaries to include low and middle-income countries and those vulnerable to climate shocks, aiming to build resilience and sustainability.

What has caused countries to deplete their reserves during the COVID crisis?

• Decrease in global reserve requirements

• Increased spending and economic shrinkage

• Economic growth

• Increased global trade

What is the total amount of the new SDR allocation agreed upon?

• $500 billion

• $600 billion

• $650 billion

• $700 billion

Which group of countries receives a larger share of the new SDR allocation?

• Advanced economies

• Developing economies

• Emerging markets

• Low-income countries

What initiative is the G7 supporting regarding SDRs?

• Reducing SDR allocation

• Redirecting SDRs to countries in need

• Eliminating SDRs

• Increasing SDR allocation

What is the purpose of the proposed Resilience and Sustainability Trust?

• To reduce global reserve requirements

• To build resilience against frequent and severe shocks

• To support only advanced economies

• To increase global trade