The more immediate question is how to use the $400 billion of SDRs allocated to rich countries that are unlikely to need them. Simply holding these excess SDR balances with the IMF is a tremendous waste, given the massive opportunity costs. Some richer economies have pledged to reallocate a total of $100 billion in SDRs, but have yet to meet that target. As a result, how to recycle or re-channel existing SDRs has become an urgent question. But the IMF’s proposal to establish a $50 billion “Resilience and Sustainability Trust” would deprive developing countries of many of the advantages of SDRs. For starters, the amount is shockingly small. Worse, the resources are to be provided in the form of debt that must be repaid (albeit at low interest rates), and will be subject to IMF conditionalities that have far too often proved hugely counterproductive. And the money will be available only to low-income countries or those currently under IMF programs, leaving out most of the developing world. In other words, the IMF’s proposed scheme is business as usual, implying little meaningful positive impact.