President Joe Biden’s nominee for the number-2 position at the US Treasury has said it is critical to end the COVID-19 pandemic everywhere around the world.
Wally Adeyemo told a Senate Finance Committee hearing on Tuesday that doing so would require providing resources to some of the globe’s poorest countries.
Nigerian-born Mr. Adeyemo, who made the remark at his confirmation hearing before the Committee, was responding to a question about a possible new allocation of the International Monetary Fund’s own currency, or Special Drawing Rights (SDRs), that would allow rich countries to provide additional resources to poorer nations.
“Providing financial resources to some of the most poorest countries in the world is going to be critical to our national security if we seek to make sure that COVID-19 isn’t something that continues to affect us,” Mr. Adeyemo said.
Democratic Senator Elizabeth Warren told Mr. Adeyemo it was no surprise that the erstwhile Trump administration had blocked issuance of new SDRs, a move akin to a central bank printing money, but she said she hoped the Biden administration would reverse that position.
“I hope Treasury will commit to delivering this crucial support,” she said. “This pandemic won’t be over for us until it’s over for everyone, and our economy won’t fully recover until other countries’ economies are back on their feet as well,” Senator Warren added.
On Tuesday, the US Conference of Catholic Bishops and an alliance of faith groups sent a letter to President Biden, urging him to support a 3 trillion Dollars issuance of the IMF’s currency to help poor countries devastated by the coronavirus pandemic.
Italy, which is leading the Group of 20 major economies this year, is however pushing for a more moderate 500 billion Dollars allocation, a move backed by France, Germany and other big countries.
Mr. Adeyemo gave no details of how the aid should be provided, and US officials have not communicated a firm position on a new SDR allocation. Treasury Department declined to comment.
It was not clear if Treasury Secretary Janet Yellen would back an SDR allocation when she meets virtually with other G20 finance officials on Friday.
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