§286q Limitation on allocations to the United States

Summary

It stops U.S. officials from voting to approve Special Drawing Rights (SDR) allocations that would give the United States more SDRs in any basic period than the U.S. quota in the Fund, unless Congress says it’s allowed. Before any U.S. vote on allocating SDRs, the Treasury Secretary must talk at least 90 days beforehand with the chair and top minority members of the Senate Foreign Relations Committee, the Senate Banking, Housing, and Urban Affairs Committee, the House Committee on Banking, Finance and Urban Affairs, and their relevant subcommittees. The Treasury must explain how the allocation fits the Fund’s rule to meet long‑term global reserve needs and avoid worldwide stagnation, deflation, or excess inflation. U.S. officials also must not take part in voluntary SDR exchanges with a country if the Secretary of State finds that the country committed genocide within the 1‑year period before the transaction or repeatedly supported international terrorism. The Treasury must tell U.S. directors at international financial institutions to oppose aid to such governments and to try to stop others from exchanging SDRs with them. The President can waive those exchange and opposition rules case‑by‑case if he reports to the House Committee on Financial Services and the Senate Committee on Foreign Relations that the waiver is in the national interest and explains why.