Politics

Mnuchin warns IMF against 'printing money' during coronavirus crisis

Treasury Secretary Steven Mnuchin speaks during the daily briefing on the novel coronavirus, COVID-19, in the Brady Briefing Room at the White House on April 2, 2020, in Washington, DC.
Mandel Ngan | AFP | Getty Images

The United States opposes the creation of liquidity through the issuance of the International Monetary Fund's Special Drawing Rights (SDRs) as part of the response to the coronavirus pandemic, U.S. Treasury Secretary Steven Mnuchin said on Thursday.

In a statement to the IMF's steering committee, Mnuchin said 70% of the funds created through an SDR allocation, something akin to a central bank "printing" new money, would go to G-20 countries that did not need it, while only 3% would go to low-income countries.

Instead, he said, members should contribute to two IMF facilities that provide funds to the poorest countries, and the U.S. government was exploring such a contribution itself.