IMF approves use of reserve assets for 'hybrid' financial instruments

The IMF said Wednesday that its board had voted to allow member states’ IMF-issued international reserve assets to be used by multilateral development banks (MDBs) to acquire financial instruments that would stretch their balance sheets further.

The International Monetary Fund said in a statement that the move would allow member states to let their Special Drawing Rights (SDRs) — international reserve assets created by the Fund — be used by MDBs to obtain so-called “hybrid capital” instruments.

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