S. 3036: Chinese Communist Party SDR Exchange Prohibition Act of 2025

This bill is called the Chinese Communist Party SDR Exchange Prohibition Act of 2025. Its main purpose is to prevent the U.S. Secretary of the Treasury from engaging in transactions that involve exchanging Special Drawing Rights (SDRs) that are held by the Chinese Communist Party (CCP). Here are the key components of the bill:

Prohibitions on Transactions

The bill states that the Secretary of the Treasury is forbidden from conducting any transactions that involve the exchange of these SDRs with the CCP. SDRs are international reserve assets created by the International Monetary Fund (IMF) to supplement member countries' official currencies.

Advocacy for Global Action

Additionally, the bill mandates that the Secretary of the Treasury actively encourage other countries that are members of the IMF to also prohibit exchanges involving SDRs held by the CCP if those countries use a freely usable currency. This means that the U.S. will push other nations to take similar actions against the CCP regarding SDRs.

Opposition to Future Allocations

The bill requires the U.S. Executive Director at the IMF to oppose any allocation of SDRs to the CCP. This reflects a broader stance against increasing financial resources available to the CCP through these international assets.

Presidential Waiver

The bill includes a provision that allows the President to waive the restrictions if he or she decides that doing so is in the national interest of the United States. If a waiver is issued, the President must inform Congress and provide a justification for the decision.

Termination Clause

The prohibitions outlined in this bill will terminate either five years after the bill is enacted or when the President decides and reports to Congress that such termination is in the national interest of the United States, whichever comes first.

Relevant Companies

None found.