WASHINGTON, D.C. — On December 20, 2023, Senator Rick Scott and Senator Joe Manchin announced the introduction of their Iran SDR Exchange Prohibition Act to prohibit the U.S. Treasury Secretary from exchanging dollars for International Monetary Fund (IMF) Special Drawing Rights (SDRs) held by Iran. SDRs allow countries to lay claim to dollars, euros, and other major currencies to use with no strings attached. Iran’s SDRs currently total more than $6.7 billion and represent unconditional liquidity for Iran to back terrorist organizations, like Hamas, that are attacking a United States ally, Israel. The amount an IMF country gets from an SDR allocation is largely based on a country’s position in the world economy, meaning most of the money goes to wealthy countries and rogue regimes, and not the countries that need it most. Congressmen French Hill and Brad Sherman introduced the companion legislation in the House of Representatives.
Senator Rick Scott said, “As Iran-backed Hamas terrorists attack our greatest ally in the Middle East, Israel, the United States cannot be in the business of allowing IMF to be a piggy bank to Iran, funding these attacks or any future ones. Iran is the world’s largest state sponsor of terror. Its leaders chant, ‘Death to America’ and want to destroy Israel. Iran is behind the brutal terrorists that beheaded babies, raped and killed young women, burned people alive and are still holding Americans hostage. This legislation closes the door for Iran to receive U.S. support through the IMF, which has grossly acted as an open financial channel to Iran for too long. I am proud to join Senator Manchin, Congressman Hill and Congressman Sherman to lead this bipartisan, bicameral effort, and look forward to it becoming law.”
Senator Joe Manchin said, “We must hold Iran accountable for their sponsorship of Hamas and other terrorist organizations, and this includes doing everything we can to limit their ability to access international financial capital. Our bipartisan, bicameral legislation would prohibit the IMF from financing the world’s leading sponsor of terrorism and further demonstrate our solidarity with Israel. I encourage my colleagues on both sides of the aisle to support this critical bill and I will continue working to get it across the finish line and signed into law.”
Representative French Hill said, “SDR allocations are a giveaway to rogue nations around the world, including the leading state sponsor of terrorism, Iran. I fear that Iran would turn to Beijing to exchange or pledge its SDRs to further finance their ring of terrorism. Our bipartisan legislation makes it clear that the United States will play no part in making funds available to Iran.”
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