A bill to amend the Exchange Rates and International Economic Policy Coordination Act of 1988 to clarify the conditions under which the Secretary should enter into negotiations to correct currency manipulations by other countries.

Amends the Exchange Rates and International Economic Policy Coordination Act of 1988 with respect to the conditions for required actions by the Secretary of the Treasury to initate expedited negotiations for exchange rate adjustments by a foreign country the Secretary considers to be manipulating the rate of exchange between its currency and the U.S. dollar in order to prevent effective balance of payments adjustments or gain unfair competitive advantage in international trade.

Repeals the requirement that such a country have a material global account surplus as well as a significant bilateral trade surplus with the United States. (Thus requires only that it have a significant bilateral trade surplus with the United States; that is, the Secretary is required to take action to initiate exchange rate adjustment negotiations with any country that has a significant bilateral trade surplus with the United States, regardless of its material global account status.)

Requires the Secretary's annual report to specified congressional committees to contain a detailed explanation of the test used to determine if a country is manipulating the rate of exchange between its currency and the dollar for such purposes.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2765 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                S. 2765

     To amend the Exchange Rates and International Economic Policy 
  Coordination Act of 1988 to clarify the conditions under which the 
     Secretary should enter into negotiations to correct currency 
                   manipulations by other countries.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 2004

 Ms. Snowe (for herself, Mr. Voinovich, and Mrs. Dole) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
     To amend the Exchange Rates and International Economic Policy 
  Coordination Act of 1988 to clarify the conditions under which the 
     Secretary should enter into negotiations to correct currency 
                   manipulations by other countries.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AMENDMENTS RELATING TO INTERNATIONAL FINANCIAL POLICY.

    (a) Bilateral Negotiations.--Section 3004(b) of the Exchange Rates 
and International Economic Policy Coordination Act of 1988 (22 U.S.C. 
5304(b)) is amended in the second sentence by striking ``(1) have 
material global account surpluses; and (2)''.
    (b) Report.--Section 3005(b) of the Exchange Rates and 
International Economic Policy Coordination Act of 1988 (22 U.S.C. 
5305(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(9) a detailed explanation of the test the Secretary uses 
        to determine if a country is manipulating the rate of exchange 
        between that country's currency and the dollar for purposes of 
        preventing effective balance of payments adjustments or gaining 
        an unfair advantage in international trade.''.
                                 <all>