Exchange Rate Policy Reporting Act of 1994

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Exchange Rate Policy Reporting Act 
of 1994''.

SEC. 2. PRESENTATION OF SEMIANNUAL REPORTS OF FEDERAL RESERVE BOARD TO 
              CONGRESS.

    (a) In General.--Section 2A of the Federal Reserve Act (12 U.S.C. 
225(a)) is amended--
            (1) by striking ``The Board of Governors of the Federal 
        Reserve System'' where such term appears in the 1st sentence 
        and inserting ``(a) In General.--The Board of Governors of the 
        Federal Reserve System''; and
            (2) by adding at the end the following new subsections:
    ``(b) Presentation of Reports to the Congress.--
            ``(1) In general.--During the 30-day periods ending on 
        February 20 and July 20 of each year, the Chairman of the Board 
        of Governors of the Federal Reserve System shall appear before 
        the Committee on Banking, Finance and Urban Affairs of the 
        House of Representatives and Committee on Banking, Housing, and 
        Urban Affairs of the Senate, upon the invitation of the 
        chairman of each such committee, to present and discuss the 
        reports required under subsection (a).
            ``(2) Appearance with secretary of the treasury.--The 
        Chairman of the Board of Governors of the Federal Reserve 
        System shall make the appearance required under paragraph (1) 
        at the same time as the Secretary of the Treasury appears 
        before such committees pursuant to section 3005 of the Omnibus 
        Trade and Competitiveness Act of 1988.
    ``(c) Effect of Monetary Policy on Exchange Rate.--Each report 
required under this section shall contain a description of--
            ``(1) the effect the conduct of monetary policy is having 
        on the exchange rate of the United States dollar and the effect 
        the Board anticipates such policy will have on the exchange 
        rate; and
            ``(2) the current and anticipated impact of the exchange 
        rate and any anticipated change in the exchange rate on 
        domestic interest rates, employment, production, inflation, 
        wages, and economic growth.
    ``(d) Information on Currency Swaps.--
            ``(1) In general.--Each report required under this section 
        shall contain a description of--
                    ``(A) all currency swap agreements in effect with 
                any foreign entity;
                    ``(B) any change since the preceding report in any 
                inventory of currencies under the Board's control; and
                    ``(C) foreign loans and lines of credit from or to, 
                any foreign entity which are outstanding at the time of 
                the report.
            ``(2) Detailed descriptions.--The report shall include a 
        detailed description of--
                    ``(A) any foreign entity referred to in paragraph 
                (1);
                    ``(B) all conditions of any swap agreement or 
                currency transaction referred to in paragraph (1); and
                    ``(C) the reasons for, and the benefits of, any 
                such agreement or transaction.
    ``(e) July Updates.--The report submitted by July 20 of each year 
shall contain--
            ``(1) a statement of the anticipated effect the conduct of 
        monetary policy will have on exchange rates during the next 
        calendar year; and
            ``(2) a statement of the anticipated changes which will 
        occur with respect to the matters required to be reported under 
        subsection (c) and (d).

SEC. 3. REPORTS OF THE SECRETARY OF THE TREASURY UNDER THE OMNIBUS 
              TRADE AND COMPETITIVENESS ACT OF 1988.

    Section 3005 of the Omnibus Trade and Competitiveness Act of 1988 
(22 U.S.C. 5305) is amended--
            (1) in subsection (a)--
                    (A) by striking ``October 15'' and inserting 
                ``February 20 and July 20''; and
                    (B) by striking the 2d and 3d sentences;
            (2) by redesignating subsection (c) as subsection (g); and
            (3) in subsection (b)--
                    (A) by striking paragraph (5); and
                    (B) by redesignating paragraphs (1) through (8) as 
                paragraphs (4) through (10) and inserting before 
                paragraph (4) (as so redesignated) the following new 
                paragraphs:
            ``(1) a statement of--
                    ``(A) the Secretary's plans and objectives with 
                respect to the exchange rate of the United States 
                dollar; and
                    ``(B) the extent to which the Secretary has been 
                successful in achieving such objectives;
            ``(2) an analysis of--
                    ``(A) the factors that are currently affecting the 
                exchange rate of the dollar; and
                    ``(B) the current and anticipated impact of the 
                exchange rate of the dollar on--
                            ``(i) domestic interest rates, employment, 
                        production, inflation, wages, and economic 
                        growth;
                            ``(ii) the current account and the 
                        financial and capital account of the United 
                        States;
                            ``(iii) the international competitive 
                        performance of United States industries; and
                            ``(iv) the external indebtedness of the 
                        United States;
            ``(3) a description of--
                    ``(A) all currency swap agreements in effect with 
                any foreign entity;
                    ``(B) any change since the preceding report in any 
                inventory of currencies under the Secretary's control; 
                and
                    ``(C) foreign loans and lines of credit from or to, 
                any foreign entity which are outstanding at the time of 
                the report;'';
            (4) by inserting after subsection (b) the following new 
        subsections:
    ``(c) Changes in Policy.--
            ``(1) In general.--This section shall not be construed as 
        requiring the plans disclosed in any report under subsection 
        (a) to be carried out by the Secretary after such report is 
        submitted to the Congress if the Secretary determines that, 
        because of changing conditions and circumstances, such policies 
        cannot or should not be carried out or the objectives for such 
        plans cannot be achieved.
            ``(2) Report on determination.--If the Secretary makes any 
        determination described in paragraph (1) with respect to any 
        plans and objectives, the Secretary shall include in the next 
        report under subsection (a) after such determination an 
        explanation for any revision or deviation from the plan or 
        objective.
    ``(d) Reports on Interventions.--If the Secretary intervenes, or 
directs the Board of Governors of the Federal Reserve System or any 
Federal reserve bank to intervene, in the currency markets, the 
Secretary shall submit a report to the Congress before the end of the 
24-hour period beginning at the time such intervention begins 
describing the factors which prompted the intervention and the 
objectives of the intervention.
    ``(e) July Updates.--The report submitted by July 20 of each year 
shall contain--
            ``(1) a statement of the Secretary's plans and objectives 
        with respect to the exchange rate of the United States dollar 
        during the next calendar year; and
            ``(2) a statement of the anticipated changes which will 
        occur with respect to the matters required to be reported under 
        paragraphs (2) and (3) of subsection (b).
    ``(f) Appearance Before Congressional Committees With the Chairman 
of the Federal Reserve Board.--The Secretary shall appear before the 
Committee on Banking, Finance and Urban Affairs of the House of 
Representatives and Committee on Banking, Housing, and Urban Affairs of 
the Senate, upon the invitation of the chairman of each such committee, 
to present the report required under this section and answer questions 
relating to the report and United States policy at the same time as the 
Chairman of the Board of Governors of the Federal Reserve System 
appears before such committees pursuant to section 2A(b) of the Federal 
Reserve Act.''.

Summary: Exchange Rate Policy Reporting Act of 1994 - Amends the Federal Reserve Act to direct the Chairman of the Board of Governors of the Federal Reserve System to report to certain congressional committees biannually and contemporaneously with the Secretary of the Treasury on the effect of monetary policy upon: (1) the exchange rate of the dollar. And (2) the status of currency swap agreements with any foreign entity. Amends the Omnibus Trade and Competitiveness Act of 1988 to modify the Secretary's report to such committees to include: (1) the Secretary's objectives with respect to the exchange rate of the dollar. (2) a specified analysis of the exchange rate of the dollar. And (3) the status of currency swap agreements with any foreign entity. Instructs the Secretary to report to the Congress within 24 hours if the Secretary intervenes, or directs the Board or any Federal Reserve Bank to intervene, in the currency markets.