Call on Special Drawing Rights 12.7.20 Meeting Notes

Attendees

Nadia Daar - Oxfam

Chiara Mariotti  - Eurodad

Emma Burgisser – Bretton Woods Project

Alex Main  - CEPR

Stefano Prato - SID

Matti Kohonen - Christian Aid

Didier Jacobs - Oxfam

Dario Kenner – CAFOD

Jason Braganza - AFRODAD

Patricia Miranda - LATINDADD

Aldo Caliari - Jubilee USA

Zach Conti - Jubilee USA

Notes

• Quick update on the US fronts and mild optimism on future developments
• Up to this point, the US Treasury has been against a new SDR allocation, but the Biden administration is likely to be more open
  • Jubilee has been in contact with the transition team
  • The transition team is briefing nominee to Sec. of Treasury, Yellen, so in case of action this is one of her first. Treasury can support allocation of up to $648 bn (approx. dollar equivalent to IMF SDR quota) every five years – distributed in either one or more allocations. But to do that, Treasury must provide a 90-day notice to Congress.
• Congress can authorize Treasury to support allocation that goes beyond that IMF Quota limit in a given five-year period. Early Congressional support for higher SDR allocation came from progressives, but has since garnered support from moderate Democrats and leadership too. Sen. Durbin has become an important supporter.
• There is no Republican support in Congress for an allocation above the Treasury limit, but signs that some would have been inclined to support one under this Treasury’s leadership.
• Some are skeptical that it is possible to make multiple allocations, given all the moving pieces. There is shared agreement it will be strategic to continue ask for 'big' or at least as large as possible new issuance.
• Generally Congress defers to the Treasury on SDR allocations but there is concern that in the current political climate, unless the Senate flips, it may block Treasury’s attempts at higher allocations.
• There is some support from European countries - Germany supports a “moderate allocation” and France is on board for an allocation of around $500 bn. The UK states that it is not against a higher allocation but would rather focus on unused SDRs.
• Italy, UK Japan - and possibly, more recently, France – have donated existing SDRs to PRGT.
• Shared agreement that unused SDRs (“reallocation”) should be a separate issue from a new issuance – perhaps something to push after securing new issuance, to avoid confusing messages.
• It is quite possible that European countries are strategically appearing more open to the idea than they actually are - instead hiding behind US opposition as reason to not support as strongly.
• Need to keep an eye on India and evolution of different positions within the G20.
• Role of Italian C20, more insights on G20 to come.
• This may merit a broader campaign that targets even countries that appear supportive so as to not take any support for granted.
• Lobbying the US government can be done not only from within the US, but also by getting both developed and developing countries’ governments to officially support a higher issuance and to call for US support as well.
• It’d be good to get IMF to, behind the scenes, recommend a figure to G20 governments.
• Will regroup in January after Georgia runoffs when the political landscape is more clear.
• Nadia offered to organize a call with IMF.