Rep. French Hill (AR-02) today sent a letter to the ambassadors to the United States of the six nations of the G7 outlining his concerns with a Special Drawing Rights (SDR) allocation through the International Monetary Fund (IMF) following recent news reports suggesting that the G7 is discussing a $650 billion allocation.
“I’ve long opposed the allocation of SDRs as a response to COVID-19. The funding is not targeted, there is no accountability, and SDRs give aid to countries that support genocide and terrorism,” said Rep. Hill. “The G7 should instead focus on utilizing the IMF’s existing $1 trillion in firepower and its emergency trust funds to target developing countries in a more accountable and tailored way.”
In the letter, Rep. Hill states, “An SDR allocation is not targeted, tailored, or tied to COVID. There is no accountability over these funds so each country could spend this money however they see fit. Furthermore, the funding is made in line with the IMF quota which means the bulk of SDRs would go to countries with strong reserve positions that do not need additional funds. Ultimately an SDR allocation is a quick infusion of liquidity which would provide a blank check to genocidal regimes and state sponsors of terrorism.”
Further Background:
- In September 2020, Rep. Hill initially outlined his concerns with SDRs in an op-ed in The Hill.
- In February 2021, Rep. Hill reiterated his views an in op-ed in the Wall Street Journal.
- On March 4, 2021, Rep. Hill introduced H.R. 1568, the Special Drawing Rights Oversight Act to limit the executive branch’s ability to bypass Congress to authorize SDRs.
- For a one pager on the bill, click HERE.
