Japan Finance Minister backs new SDR allocation, U.S. calls for minimum corp tax
Japan would agree on a new allocation of special drawing rights (SDR) as long as the International Monetary Fund and World Bank help ensure transparency in providing the increased money for poor countries, Finance Minister Taro Aso said on Tuesday. “There would be no point to it if SDR expansion is used for paying back debts to China,” Aso told reporters after a cabinet meeting, repeating tacit criticism against China’s lending practice to low-income countries. Japan has backed a $650 billion increase in IMF monetary reserves. Speaking on the eve of a virtual gathering of financial leaders from the Group of Seven rich nations and the G20 major economies this week, Aso welcomed U.S. Treasury Secretary Janet Yellen’s calls for the introduction of a global minimum corporate tax rate.
Special Drawing Rights (SDR)
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. So far SDR 204.2 billion (equivalent to about US$293 billion) have been allocated to members, including SDR 182.6 billion allocated in 2009 in the wake of the global financial crisis. The value of the SDR is based on a basket of five currencies—the U.S. dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.
much moar here