Russia’s IMF Funds Will Be Directed to the Reserve

The $18 billion that Russia received from the IMF will become part of the state international reserves, said the Deputy Minister of Finance of the Russian Federation Timur Maksimov on the air of the Russia 24 TV channel on Tuesday.

As the financier explained, the reserve asset, Special Drawing Rights (SDR), is limited in its liquidity. It can be used when a country has balance of payments or debt problems.

“But the Russian Federation does not have such problems, so this asset will not play a big role for us,” Maksimov said.

Meanwhile, the Central Bank said that Russia’s international reserves in August rose by 17.178 billion to $618.181 billion, and this is a new all-time high.

The IMF’s decision to distribute special drawing rights among member countries in proportion to their quotas in the fund, totaling $ 650 billion, came into effect at the end of August.

IMF spokesman Jerry Rice explained at the time that this is the largest release in the history of the fund, it is aimed at helping to overcome the crisis due to the coronavirus pandemic.