WASHINGTON (AFP) - The International Monetary Fund said Monday it plans to inject 250 billion dollars into member nations foreign exchange reserves to boost liquidity amid the global economic crisis. The IMF executive board on Friday endorsed the proposal to allocate Special Drawing Rights (SDRs) equivalent to 250 billion dollars, by far the largest general allocation in the rarely used tool, the IMF said. SDRs allocated to members will count toward their reserve assets, acting as a low-cost liquidity buffer for low-income countries and emerging markets and reducing the need for excessive self-insurance, it said in a statement. An SDR is an interest-bearing IMF asset that is based on a basket of international currencies the dollar, yen, euro and pound that is calculated daily and which members can convert into other currencies. The general increase in SDRs was part of a 1.1 trillion dollar plan agreed at the Group of 20 summit in London in early April to tackle the global financial and economic crisis. The SDR allocation is a key part of the funds response to the global crisis, offering significant support to its members in these difficult times, IMF managing director Dominique Strauss-Kahn said in the statement. The IMF board of governors is to vote on the proposal by August 7. If approved, the allocation will take effect on August 28. The operation will increase each member countrys allocation of SDRs by roughly 74 percent of its quota in the fund, which is broadly based on the members relative size in the global economy. A member country can choose to keep its SDRs, thereby boosting its international reserves, sell all or part of them, and convert them into other currencies to be used in transactions with other members or the fund itself. Some members may choose to sell part or all of their allocation to other members in exchange for hard currency for example, to meet balance of payments needs while other members may choose to buy more SDRs as a means of reallocating their reserves, the IMF said. Nearly 100 billion dollars of the new allocation will go to emerging markets and developing countries, of which low-income countries will receive more than 18 billion dollars, the Washington-based institution said. The proposed distribution dwarfs the total 21.4 billion SDRs (33 billion dollars) allocated in yearly installments through two previous general allocations: 9.3 billion SDRs in 1970-1972 and 12.1 billion in 1979-1981.