Yellen backs new allocation of IMF's SDR currency to help poor countries

U.S. Treasury Secretary Janet Yellen on Thursday threw her support behind a new allocation of the IMF's own currency, or Special Drawing Rights, but said broad parameters were needed to boost transparency on how the reserves are used and traded. In a letter to G20 finance officials, Yellen said a new allocation of SDRs could enhance liquidity for poor countries and aid their much-needed health and economic recovery efforts, reversing the opposition of the previous U.S. administration.

Yellen also strongly encouraged them to use excess SDRs to support recovery efforts in poor countries, along with continued bilateral funding.