22 U.S.C. § 286q: Limitation on allocations to…

Summary

U.S. officials cannot vote to approve IMF Special Drawing Right (SDR) allocations that would give the United States more than its IMF quota, unless Congress passes a law allowing it. Before any U.S. vote to allocate SDRs, the Treasury Secretary must meet with the Chairman and ranking minority members of the Senate Committees on Foreign Relations and on Banking, Housing, and Urban Affairs, and with the House Committee on Banking, Finance and Urban Affairs (and their subcommittees) at least 90 days ahead of the vote. Those talks must explain how the allocation fits the IMF’s duty to meet long-term global reserve needs and to help avoid worldwide stagnation, deflation, excess demand, or inflation. Also, unless Congress allows it, the United States may not take part in voluntary SDR exchanges with a country if the Secretary of State finds that country committed genocide in the past 1-year period or repeatedly supported international terrorism. The Treasury must tell U.S. Executive Directors at international financial institutions to use the U.S. voice and vote to oppose lending to such governments and to try to stop other members from doing voluntary SDR exchanges with them. The President can waive those exchange and voting limits case-by-case, but must report to the House Committee on Financial Services and the Senate Committee on Foreign Relations that the waiver is in the national interest and explain why.

Title 22, §286q

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Unless Congress by law authorizes such action, neither the President nor any person or agency shall on behalf of the United States vote to allocate in each basic period Special Drawing Rights under article XVIII, section 2 and 3, of the Articles of Agreement of the Fund so that allocations to the United States in that period exceed an amount equal to the United States quota in the Fund as authorized under the Bretton Woods Agreements Act [22 U.S.C. 286 et seq.].

(b)(1)Neither the President nor any person or agency shall on behalf of the United States vote to allocate Special Drawing Rights under article XVIII, section 2 and 3, of the Articles of Agreement of the Fund without consultations by the Secretary of the Treasury at least 90 days prior to any such vote, with the Chairman and ranking minority members of the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and the appropriate subcommittees thereof.

(2)Such consultations shall include an explanation of the consistency of such proposal to allocate with the requirements of the Articles of Agreement of the Fund, in particular the requirement that in all its decisions with respect to allocation of Special Drawing Rights, the Fund shall “seek to meet the long-term global need, as and when it arises, to supplement existing reserve assets in such manner as will promote the attainment of its purposes and will avoid economic stagnation and deflation as well as excess demand and inflation in the world”.

(3)Unless Congress by law authorizes such action, neither the President nor any person or agency shall on behalf of the United States engage in any voluntary transaction involving the exchange of Special Drawing Rights that are held by a member country of the Fund, if the Secretary of State has found that the government of the member country—

(A)has committed genocide at any time during the 1-year period ending with the date of the transaction; or

(B)has repeatedly provided support for acts of international terrorism.

(4)The Secretary of the Treasury shall direct the United States Executive Director at each international financial institution (as defined in section 262r(c)(2) of this title) to use the voice and vote of the United States to—

(A)oppose the provision of financial assistance to any government with respect to which the Secretary of State has made a finding described in paragraph (3); and

(B)seek to ensure that the member countries of the institution do not engage in voluntary transactions involving the exchange of Special Drawing Rights held by such a government.

(5)Waiver.—

The President may waive paragraphs (3) and (4) on a case-by-case basis if the President reports to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate that the waiver is in the national interest of the United States, and includes a detailed explanation of the reasons therefor.

Notes & Related Subsidiaries

Amendment of Subsection (b)Pub. L. 118–47, div. F, title VII, § 7071(b), Mar. 23, 2024, 138 Stat. 851, provided that, effective on the date that is 10 years after Mar. 23, 2024, paragraphs (3) to (5) of subsection (b) of this section, as added by section 7071(a) of title VII of div. F of Pub. L. 118–47, are repealed. See 2024 Amendment note below.

Editorial Notes

References in Text

The Bretton Woods Agreements Act, referred to in subsec. (a), is act July 31, 1945, ch. 339, 59 Stat. 512, which is classified principally to this subchapter (§ 286 et seq.). For complete classification of this Act to the Code, see

Short Title

note set out under section 286 of this title and Tables. Codification Section was not enacted as part of act July 31, 1945, ch. 339, 59 Stat. 512, known as the Bretton Woods Agreement Act, which comprises this subchapter.

Amendments

2024—Subsec. (b)(3) to (5). Pub. L. 118–47, § 7071(b), struck out pars. (3) to (5) which established a prohibition on certain transactions involving perpetrators of genocide and state sponsors of terrorism without congressional authorization and set out conditions under which the President could waive such prohibition. Pub. L. 118–47, § 7071(a), added pars. (3) to (5). 1983—Pub. L. 98–181 designated existing provisions as subsec. (a) and added subsec. (b). 1976—Pub. L. 94–564 substituted “article XVIII” for “article XXIV”. 1970—Pub. L. 91–599 inserted “in each basic period” after “vote to allocate” and substituted “allocations to the United States in that period exceed an amount equal to the United States quota in the Fund as authorized under the Bretton Woods Agreements Act” for “net cumulative allocations to the United States exceed an amount equal to the United States quota in the Fund as heretofore authorized under the Bretton Woods Agreements Act of 1945, as amended”.

Statutory Notes and Related Subsidiaries

Change of Name

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.

Effective Date

of 2024 Amendment Pub. L. 118–47, div. F, title VII, § 7071(b), Mar. 23, 2024, 138 Stat. 851, provided that the amendment made by section 7071(b) is effective on the date that is 10 years after Mar. 23, 2024.

Effective Date

of 1976 AmendmentAmendment effective Apr. 1, 1978, see section 9 of Pub. L. 94–564, set out as a note under section 286a of this title.

§286q Limitation on Allocations to the United States

Summary

Title 22, §286q

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Amendments

Statutory Notes and Related Subsidiaries

Change of Name

Effective Date

Effective Date

Citations & Metadata