The spring meetings of the International Monetary Fund (IMF) and the World Bank begin on Monday, April 5. On the IMF’s agenda, a total of $ 650 billion in IMF money will be transferred to the reserves of member countries. If the proposal is approved, $ 6.4 billion could be added to the Central Bank’s (CBR) total reserves.
Following the meetings, the IMF will release its Global Economic Outlook report on Tuesday, April 6. This report will include assessments and forecasts on macroeconomic indicators of both member countries and the global economy.
Member countries support the reserve transfer proposal
One of the most important agendas of the IMF meeting is the transfer of a total of $ 650 billion equivalent to IMF member countries. According to Bloomberg, the official proposal will not come to the table until June, but has received widespread support among member countries.
US Treasury Secretary Janet Yellen In a speech to Congress last week, he said he intended to support the reserve transfer proposal.
The IMF’s $ 1.576 billion remains in the CBRT’s gross reserves
Spokesman Emre Deveci according to the newsIf the proposals are implemented, $ 6 billion 370 million of IMF money (SDR) will be transferred to the country’s quotas in accordance with the Turkish quota. This money will be added to the total reserves of the CBRT.
The United States, the country with the highest quota, will receive $ 113.4 billion from the IMF if the contingency transfer plan goes ahead. Other members will also receive IMF money in accordance with their quotas.
The SDR can keep the money in the general reserve in Turkey. Member countries can spend IMF money in dollars or other fiat currencies, but generally do not spend SDR if they do not have difficulty.
At present, $ 1 billion 576 million of the IMF’s money remains in the CBRT’s gross reserves. This money is different from the money that the IMF transfers as a loan to member countries.
11.58 TL is equal to SDR
The IMF has so far provided SDR 204.2 billion ($ 318 billion) in reserve money to member states.
Previously, the highest transfer was SDR 161.2 billion on August 28, 2009 after the 2008 Global Financial Crisis.
Currently, one SDR is worth $ 1,418 and $ 11.58.
What is SDR?
SDR (special withdrawal rights) is an international reserve currency created by the IMF to increase the official reserves of member countries. A total of 204.2 billion SDR reserves were allocated, of which 182.6 billion were after the 2009 global financial crisis. The value of the SDR is calculated by a basket in which the US dollar, euro, Chinese yuan, Japanese yen and British pound are taken in different weights.
Net reserves are negative
The CBRT currently has gross reserves of $ 90.9 billion. Some liabilities, especially foreign currency and gold held by banks as required reserves, reach $ 12.8 billion in net reserves.
As of March 26, the CBRT had borrowed $ 60 billion in foreign currency and gold from local and foreign banks for a specified period of time. Taking this figure into account, the CBRT’s net reserves are now at a record low of minus (-) $ 47.2 billion.
In the last two years, $ 130 billion in unofficial spending from the CBRT under the guise of slowing exchange rate growth has been on the political and economic agenda.