ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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IMF-SDRs in the Cold

SDRs in the Cold WHATEVER happened to the proposal of the IMF managing director, Michel Camdessus, for the allocation of 36 billion SDRs? The proposal was supposed to be on the agenda of the April meeting of the Interim Committee, the Fund's principal advisory body. In preparation for this meeting, a much publicised seminar had been convened by the Fund. The seminar was meant to clarify thinking on what sort of long-term global role could be envisaged for the SDRs since the time their allocation had been first decided upon in 1969. At the same time, Camdessus made it clear in his observations at the seminar that his immediate objective was to get support for his proposal at the forthcoming meeting of the Interim Committee and thereby pave the way for "making regular, modest SDR allocations". His case rested principally on the argument that with the stock of non- gold reserves standing at SDR 923 billion at the end of 1995 and with the stock increasing at an average annual rate of over 7.5 percent ''much more than the largest allocations [of SDRs) ever discussed by IMF" members", the allocation he was proposing, and that too after a gap of almost 15 years since the last one in 1981, could not be considered excessive. As it turned out, the seminar did not resolve any issues, long-term or short- term. Differences among the participants remained sharp, most of all between the representatives of the developed and developing countries.

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