Kuwait’s balance with the IMF rose 8% to 236

Alaa Majid

Kuwait’s cash reserve with the International Monetary Fund last January maintained the same levels as last November and December, at 236.5 million dinars, which is the same record level achieved last July, according to the Central Bank of Kuwait data for January 2022.

On an annual basis, the volume of Kuwaiti reserves deposited with the International Monetary Fund increased by 7.9% at the end of last January, at a value of 17.3 million dinars, compared to their levels of 219.2 million dinars at the end of January of 2021.

The reserve position in the International Monetary Fund consists of the reserve tranche, that is, the amounts of foreign currency that a member country may withdraw from the International Monetary Fund within a short period, and a debt to the International Monetary Fund (according to a loan agreement) in the account of public resources, which are at the disposal of the member country, including: That the reporting country’s lending to the IMF under the General Agreements to Borrow, the New Agreements to Borrow, and claims on the Fund released in SDRs are foreign currency claims.

The volume of special drawing rights during the month of January also maintained the same levels of the past four months, reaching 1.36 billion dinars, which are international reserve assets created by the International Monetary Fund as a supplementary reserve asset to the reserve assets of the member countries of the fund, and the fund distributes the special drawing rights among its members on The basis of the percentage of their shares in the fund.

The total foreign currency and deposits abroad increased by the end of January to reach 12.21 billion dinars, an increase of 1.8%, compared to 11.99 billion dinars during last December. Deposits here are deposits available on demand, which are deposits available with foreign central banks, the Bank for International Settlements and other banks. The currency also consists of paper money and coins in circulation from foreign currencies and generally used to make payments, with the exception of commemorative coins.

The International Monetary Fund works to enhance financial stability and cooperation in the monetary field at the world level, and facilitates international trade, increases employment of labor and sustainable economic growth. It also helps in efforts to reduce poverty worldwide. The Fund is managed by the 189 member countries.

The International Monetary Fund also provides advice on how to achieve economic stability, prevent financial crises, and improve living standards. The total amount that the Fund can lend to member countries is $1 trillion.

By Editor

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