A bipartisan bill proposed by U.S. Rep. French Hill that would prohibit the U.S. Treasury Department from exchanging special drawing rights (SDRs) held by Russia or Belarus is on its way to being signed into law by President Joe Biden.
The U.S. Senate on Sept. 21 gave unanimous consent to the Russia and Belarus SDR Exchange Prohibition Act of 2022, H.R. 6899, which Rep. Hill sponsored on March 2 to prohibit the Treasury Department secretary from exchanging dollars for International Monetary Fund SDR assets held by Russia or Belarus.
SDRs are international reserve assets maintained by the International Monetary Fund (IMF) based on contributions from IMF member countries, according to the congressional record bill summary, and SDRs may be exchanged between member countries and also may be exchanged for currencies.
“As Russia continues their warmongering against Ukraine, it is vital that we work to constrain the Russian and Belarus economies by preventing them from exchanging their IMF assets to fund their illegal invasion of Ukraine,” Rep. Hill said, adding that he looks forward to President Biden signing the bill into law soon.
If enacted, H.R. 6899 also would require the Treasury Department to “vigorously advocate” for IMF member countries to prohibit transactions involving the exchange of SDRs held by Russia or Belarus, and direct U.S. representatives to each international financial institution to oppose providing financial assistance to Russia or Belarus except to address the basic human needs of their civilian populations, the summary says.
After its introduction, H.R. 6899 garnered 13 cosponsors, including U.S. Reps. Bryan Steil (R-WI), Andy Barr (R-KY), Ann Wagner (R-MO), Tom Emmer (R-MN), Trey Hollingsworth (R-IN), and Brad Sherman (D-CA). The U.S. House of Representatives on May 11 voted 417-2 to approve the bill and advanced it to the Senate, where on April 25 U.S. Sens. Rick Scott (R-FL) and Joe Manchin (D-WV) introduced the companion bill, S. 4079, in their chamber.