Bill Summary
The Russia and Belarus SDR Exchange Prohibition Act of 2022 is a bill proposed in the United States Congress that aims to restrict the Secretary of the Treasury from engaging in any transactions involving the exchange of Special Drawing Rights (SDRs) issued by the International Monetary Fund (IMF) that are held by Russia or Belarus. SDRs are a type of international reserve asset that can be exchanged for freely usable currencies. This bill also requires the Secretary of the Treasury to advocate for other member countries of the IMF to also prohibit these exchanges and direct the US Executive Director of the IMF to oppose any allocation of SDRs to Russia or Belarus. However, the President has the power to waive this prohibition if it is deemed to be in the national interest of the United States. The section will terminate after five years, after a 30-day notice from the President that Russia and Belarus have ceased aggression against Ukraine, or if the President determines it is in the national interest of the US.
Possible Impacts
1. This legislation could affect people in the Russian Federation and Belarus by limiting their access to Special Drawing Rights (SDRs) issued by the International Monetary Fund (IMF). This could potentially hinder their ability to participate in international financial transactions and could impact their economy.
2. The legislation could also affect the United States by limiting the actions of the Secretary of the Treasury and potentially causing tension between the US and the governments of Russia and Belarus.
3. If the President chooses to waive the application of this section, it could affect the American public by potentially impacting the national interest of the United States. This could lead to changes in foreign policy and could have economic ramifications for the country.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4079 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 4079
To prohibit the Secretary of the Treasury from engaging in transactions
involving the exchange of Special Drawing Rights issued by the
International Monetary Fund that are held by the Russian Federation or
Belarus.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 25, 2022
Mr. Scott of Florida (for himself and Mr. Manchin) introduced the
following bill; which was read twice and referred to the Committee on
Foreign Relations
_______________________________________________________________________
A BILL
To prohibit the Secretary of the Treasury from engaging in transactions
involving the exchange of Special Drawing Rights issued by the
International Monetary Fund that are held by the Russian Federation or
Belarus.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Russia and Belarus SDR Exchange
Prohibition Act of 2022''.
SEC. 2. SPECIAL DRAWING RIGHTS EXCHANGE PROHIBITION.
(a) In General.--The Secretary of the Treasury may not engage in
any transaction involving the exchange of Special Drawing Rights issued
by the International Monetary Fund and held by the Russian Federation
or Belarus.
(b) Advocacy.--The Secretary of the Treasury shall--
(1) vigorously advocate that the government of each member
country of the International Monetary Fund, to the extent that
the member country issues a freely usable currency, prohibit
transactions involving the exchange of Special Drawing Rights
held by the Russian Federation or Belarus; and
(2) direct the United States Executive Director of the
International Monetary Fund to use the voice and vote of the
United States to oppose any allocation of Special Drawing
Rights to the Russian Federation or Belarus.
(c) Waiver.--The President may waive the application of this
section if the President--
(1) determines that a waiver is in the national interest of
the United States; and
(2) submits to Congress a notice of and justification for
such waiver.
(d) Termination.--This section shall have no force or effect on the
earlier of--
(1) the date that is 5 years after the date of the
enactment of this Act;
(2) the date that is 30 days after the date that the
President reports to Congress that the Governments of the
Russian Federation and Belarus have ceased aggression
undermining the sovereignty and territorial integrity of
Ukraine; or
(3) the date on which the President determines and reports
to Congress that termination is in the national interest of the
United States.
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