Bill Overview
Title: Russia and Belarus SDR Exchange Prohibition Act of 2022
Description: This act prohibits the Department of the Treasury from engaging in any transaction involving the exchange of Special Drawing Rights (SDRs) held by Russia or Belarus and requires Treasury to take actions to oppose financial assistance to Russia or Belarus. The SDR is an international reserve asset maintained by the International Monetary Fund (IMF) based on contributions from IMF member countries. SDRs may be exchanged between member countries and may also be exchanged for currencies. Treasury must also (1) vigorously advocate for IMF member countries to prohibit transactions involving the exchange of SDRs held by Russia or Belarus, and (2) 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 act's provisions shall be in effect until the earlier of (1) five years after this act's enactment, or (2) 30 days after the President reports to Congress that the governments of Russia and Belarus have ceased destabilizing activities directed at Ukraine's sovereignty and territorial integrity. The President may also waive the provisions upon reporting to Congress that doing so is in the national interest of the United States.
Sponsors: Rep. Hill, J. French [R-AR-2]
Target Audience
Population: People in Russia and Belarus
Estimated Size: 10000
- SDRs are used by countries as a part of their international reserves and can impact their balance of payments.
- The bill directly impacts Russia and Belarus's ability to use their SDRs, which may affect their financial stability and international economic activities.
- Restrictions on financial assistance could exacerbate economic difficulties within the civilian populations of these countries.
Reasoning
- The policy has very indirect effects on U.S. citizens as it pertains to Russia and Belarus's financial capabilities, with minimal immediate impact on everyday life in the U.S. unless directly tied to these nations through family or business.
- U.S. citizens who are investors or business owners with ties to Russian or Belarusian markets might experience some implications, potentially affecting their financial well-being or job security.
- Socially aware individuals or those with strong political interests might be impacted in their perceived national wellbeing due to changes in international relations and economic diplomacy.
- The selected interviews reflect a broad span of occupations and engagements, highlighting how diverse or limited the effects could be across varied individuals in the U.S.
Simulated Interviews
Financial Analyst (New York, NY)
Age: 36 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- I think it's a reasonable move to pressure Russia and Belarus economically.
- I'm a bit concerned about potential impacts on the international financial market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 6 | 8 |
Small Business Owner (Dallas, TX)
Age: 48 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- My business might see disruptions due to this policy affecting trade routes and costs.
- I hope this doesn’t escalate tensions unnecessarily.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 4 | 7 |
| Year 10 | 5 | 7 |
| Year 20 | 6 | 7 |
Tech Startup Entrepreneur (Los Angeles, CA)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- I understand the political necessity, but geopolitical instability always worries us entrepreneurs as it may influence investments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
University Professor (Chicago, IL)
Age: 55 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- This is a significant move in international diplomacy. I'm interested to see how this affects geopolitical dynamics.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Activist (Portland, OR)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- It's important to uphold international law and human rights; however, innocent civilians in those countries might suffer more.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Retired (Atlanta, GA)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I hope this doesn't make foreign goods too expensive or hard to find in stores.
- Retirement budget might be stretched if economic tensions rise.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 7 | 6 |
Student (Boston, MA)
Age: 24 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- I see this as part of a larger geopolitical strategy, which is fascinating yet worrying.
- International conflict worries me even though it doesn't directly affect my daily life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
International Trade Consultant (Miami, FL)
Age: 33 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- This might create additional hurdles in facilitating trades efficiently.
- Consulting might be affected if trades in those areas decrease.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 7 |
Software Developer (Seattle, WA)
Age: 47 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 3/20
Statement of Opinion:
- I hope there isn't too much disruption in our client's operations abroad.
- I'd like to see these issues resolved diplomatically rather than economically.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Policy Advisor (Washington D.C.)
Age: 62 | Gender: other
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- This policy appears to fit within a broader strategic economic framework against certain nations.
- Its success will depend on global cooperation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $5000000 (Low: $3000000, High: $7000000)
Year 3: $5000000 (Low: $3000000, High: $7000000)
Year 5: $5000000 (Low: $3000000, High: $7000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The policy intends to limit the use of financial resources by Russia and Belarus that could support activities deemed destabilizing.
- The bill indirectly affects U.S. international financial diplomacy and relations with allied countries.
- Monitoring and compliance of the prohibition could require increased administrative resources.
- The impact on U.S. GDP and tax revenues is expected to be indirect and relatively minimal.