IMF raises precautionary balance target by a quarter

The International Monetary Fund’s executive board has agreed to raise the target level for its precautionary balances by a quarter in the medium term.

The executive board agreed to raise the target level from its current 20 billion in special drawing rights (approximately $28.8 billion) to SDR25 billion. It said board members were “broadly agreed” on this new figure, but added “a few directors would have preferred setting a higher target”.

The IMF’s framework for assessing precautionary