Japan and France said on Monday they will support the African Development Bank (AfDB) and Inter-American Development Bank's (IDB) plan to leverage IMF Special Drawing Rights for climate and development.
SDRs are rainy day foreign exchange reserves held at the International Monetary Fund, backed by dollars, euros, yen, sterling and yuan.
The IMF created a $650 billion allocation of new SDRs in 2021 in response to COVID-19 and said in June it had on-lent $100 billion of SDRs to low income countries at below-market rates.