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Sources say that the United States is trying to prevent the start of a powerful tool in the International Monetary Fund (IMF) that would increase liquidity and help COVID19-affected countries such as Iran.
According to a report by Reuters, US is expected to oppose creating a new allocation of Special Drawing Rights (SDR).
The Trump administration opposes providing countries such as Iran and China with billions of dollars in new resources with no conditions, two of the sources said.
US is also reportedly trying to block Iran’s access to a $5 billion emergency loan from the IMF.
SDR, akin to a central bank printing new money, has been advocated by economists, finance ministers and non-profit groups to provide as much as $500 billion in urgently-needed liquidity for the IMF’s 189 member countries. SDRs USDXDR=R, based on dollars, euro, yen, sterling and yuan, are the IMF’s official unit of exchange. Member countries hold them at the Fund in proportion to their shareholdings.
The US move comes as its unilateral sanctions against Iran have been widely condemned as obstacles in Iran’s fight against the outbreak. The Trump administration has refused to ease the sanctions and has even imposed new sanctions during the pandemic against Iran. Foreign Minister Zarif has described US efforts as a form of medical terrorism.
Despite all problems, Iran has managed to control the outbreak as it saw a two-digit death toll on Wednesday for the second day in a row. The country has mobilized its domestic capacity to create the required equipment and materials in the anti-corona fight.
