The fund must secure more money from its biggest, richest members, then deploy it at unprecedented scale
are battling a financial crisis as well as a public-health emergency. Since late January foreign investors, desperate to shed risk, have been withdrawing their cash from poor countries. At the same time falling global trade, depressed commodities prices and vanishing tourists have put export revenues, and hence the supply of foreign currency, into free fall.
Some of that help is coming from America’s Federal Reserve. It is running “swap lines” with a select few central banks, which have so far borrowed about $400bn while posting their own currencies as collateral. The Fed is also allowing most central banks to temporarily exchange any Treasuries that they hold for dollars. But among emerging-market central banks only Brazil, Mexico, Singapore and South Korea are included in the swap lines, and few poor countries have a ready supply of Treasuries.
These funds must be secured. America, to its credit, has already approved its share, but the biggest, richest members need to provide still more. TheFirst, it ought to create new special drawing rights , a currency of sorts which is convertible into dollars but whose quantity the fund controls .
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