112TH CONGRESS 

1ST SESSION S. 1619 

AN ACT 

To provide for identification of misaligned currency, require 

action to correct the misalignment, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Currency Exchange 

3 Rate Oversight Reform Act of 2011’’. 

4 SEC. 2. DEFINITIONS. 

5 In this Act: 

6 (1) ADMINISTERING AUTHORITY.—The term 

7 ‘‘administering authority’’ means the authority re8 ferred to in section 771(1) of the Tariff Act of 1930 

9 (19 U.S.C. 1677(1)). 

10 (2) AGREEMENT ON GOVERNMENT PROCURE11 MENT.—The term ‘‘Agreement on Government Pro12 curement’’ means the agreement referred to in sec13 tion 101(d)(17) of the Uruguay Round Agreements 

14 Act (19 U.S.C. 3511(d)(17)). 

15 (3) COUNTRY.—The term ‘‘country’’ means a 

16 foreign country, dependent territory, or possession of 

17 a foreign country, and may include an association of 

18 2 or more foreign countries, dependent territories, or 

19 possessions of countries into a customs union out20 side the United States. 

21 (4) EXPORTING COUNTRY.—The term ‘‘export22 ing country’’ means the country in which the subject 

23 merchandise is produced or manufactured. 

24 (5) FUNDAMENTAL MISALIGNMENT.—The term 

25 ‘‘fundamental misalignment’’ means a significant 

26 and sustained undervaluation of the prevailing real 
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1 effective exchange rate, adjusted for cyclical and 

2 transitory factors, from its medium-term equilibrium 

3 level. 

4 (6) FUNDAMENTALLY MISALIGNED CUR5 RENCY.—The term ‘‘fundamentally misaligned cur6 rency’’ means a foreign currency that is in funda7 mental misalignment. 

8 (7) REAL EFFECTIVE EXCHANGE RATE.—The 

9 term ‘‘real effective exchange rate’’ means a weight10 ed average of bilateral exchange rates, expressed in 

11 price-adjusted terms. 

12 (8) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of the Treasury. 

14 (9) STERILIZATION.—The term ‘‘sterilization’’ 

15 means domestic monetary operations taken to neu16 tralize the monetary impact of increases in reserves 

17 associated with intervention in the currency ex18 change market. 

19 (10) SUBJECT MERCHANDISE.—The term ‘‘sub20 ject merchandise’’ means the merchandise subject to 

21 an antidumping investigation, review, suspension 

22 agreement, or order referred to in section 771(25) of 

23 the Tariff Act of 1930 (19 U.S.C. 1677(25)). 

24 (11) WTO AGREEMENT.—The term ‘‘WTO 

25 Agreement’’ means the agreement referred to in sec-
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1 tion 2(9) of the Uruguay Round Agreements Act (19 

2 U.S.C. 3501(9)). 

3 SEC. 3. REPORT ON INTERNATIONAL MONETARY POLICY 

4 AND CURRENCY EXCHANGE RATES. 

5 (a) REPORTS REQUIRED.— 

6 (1) IN GENERAL.—Not later than March 15 

7 and September 15 of each calendar year, the Sec8 retary, after consulting with the Chairman of the 

9 Board of Governors of the Federal Reserve System 

10 and the Advisory Committee on International Ex11 change Rate Policy, shall submit to Congress and 

12 make public, a written report on international mone13 tary policy and currency exchange rates. 

14 (2) CONSULTATIONS.—On or before March 30 

15 and September 30 of each calendar year, the Sec16 retary shall appear, if requested, before the Com17 mittee on Banking, Housing, and Urban Affairs and 

18 the Committee on Finance of the Senate and the 

19 Committee on Financial Services and the Committee 

20 on Ways and Means of the House of Representatives 

21 to provide testimony on the reports submitted pursu22 ant to paragraph (1). 

23 (b) CONTENT OF REPORTS.—Each report submitted 

24 under subsection (a) shall contain the following: 
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1 (1) An analysis of currency market develop2 ments and the relationship between the United 

3 States dollar and the currencies of major economies 

4 and trading partners of the United States. 

5 (2) A review of the economic and monetary 

6 policies of major economies and trading partners of 

7 the United States, and an evaluation of how such 

8 policies impact currency exchange rates. 

9 (3) A description of any currency intervention 

10 by the United States or other major economies or 

11 trading partners of the United States, or other ac12 tions undertaken to adjust the actual exchange rate 

13 relative to the United States dollar. 

14 (4) An evaluation of the domestic and global 

15 factors that underlie the conditions in the currency 

16 markets, including— 

17 (A) monetary and financial conditions; 

18 (B) accumulation of foreign assets; 

19 (C) macroeconomic trends; 

20 (D) trends in current and financial ac21 count balances; 

22 (E) the size, composition, and growth of 

23 international capital flows; 

24 (F) the impact of the external sector on 

25 economic growth; 
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1 (G) the size and growth of external indebt2 edness; 

3 (H) trends in the net level of international 

4 investment; and 

5 (I) capital controls, trade, and exchange 

6 restrictions. 

7 (5) A list of currencies designated as fun8 damentally misaligned currencies pursuant to section 

9 4(a)(2), and a description of any economic models or 

10 methodologies used to establish the list. 

11 (6) A list of currencies designated for priority 

12 action pursuant to section 4(a)(3). 

13 (7) An identification of the nominal value asso14 ciated with the medium-term equilibrium exchange 

15 rate, relative to the United States dollar, for each 

16 currency listed under paragraph (6). 

17 (8) A description of any consultations con18 ducted or other steps taken pursuant to section 5, 

19 6, or 7, including any actions taken to eliminate the 

20 fundamental misalignment. 

21 (9) A description of any determination made 

22 pursuant to section 9(a). 

23 (c) CONSULTATIONS.—The Secretary shall consult 

24 with the Chairman of the Board of Governors of the Fed25 eral Reserve System and the Advisory Committee on 
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1 International Exchange Rate Policy with respect to the 

2 preparation of each report required under subsection (a). 

3 Any comments provided by the Chairman of the Board 

4 of Governors of the Federal Reserve System or the Advi5 sory Committee on International Exchange Rate Policy 

6 shall be submitted to the Secretary not later than the date 

7 that is 15 days before the date each report is due under 

8 subsection (a). The Secretary shall submit the report to 

9 Congress after taking into account all comments received 

10 from the Chairman and the Advisory Committee. 

11 SEC. 4. IDENTIFICATION OF FUNDAMENTALLY MISALIGNED 

12 CURRENCIES. 

13 (a) IDENTIFICATION.— 

14 (1) IN GENERAL.—The Secretary shall analyze 

15 on a semiannual basis the prevailing real effective 

16 exchange rates of foreign currencies. 

17 (2) DESIGNATION OF FUNDAMENTALLY MIS18 ALIGNED CURRENCIES.—With respect to the cur19 rencies of countries that have significant bilateral 

20 trade flows with the United States, and currencies 

21 that are otherwise significant to the operation, sta22 bility, or orderly development of regional or global 

23 capital markets, the Secretary shall determine 

24 whether any such currency is in fundamental mis-
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1 alignment and shall designate such currency as a 

2 fundamentally misaligned currency. 

3 (3) DESIGNATION OF CURRENCIES FOR PRI4 ORITY ACTION.—The Secretary shall designate a 

5 currency identified under paragraph (2) for priority 

6 action if the country that issues such currency is— 

7 (A) engaging in protracted large-scale 

8 intervention in the currency exchange market, 

9 particularly if accompanied by partial or full 

10 sterilization; 

11 (B) engaging in excessive and prolonged 

12 official or quasi-official accumulation of foreign 

13 exchange reserves and other foreign assets, for 

14 balance of payments purposes; 

15 (C) introducing or substantially modifying 

16 for balance of payments purposes a restriction 

17 on, or incentive for, the inflow or outflow of 

18 capital, that is inconsistent with the goal of 

19 achieving full currency convertibility; or 

20 (D) pursuing any other policy or action 

21 that, in the view of the Secretary, warrants des22 ignation for priority action. 

23 (b) REPORTS.—The Secretary shall include a list of 

24 any foreign currency designated under paragraph (2) or 

25 (3) of subsection (a) and the data and reasoning under-
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1 lying such designations in each report required by section 

2 3. 

3 SEC. 5. NEGOTIATIONS AND CONSULTATIONS. 

4 (a) IN GENERAL.—Upon designation of a currency 

5 pursuant to section 4(a)(2), the Secretary shall seek to 

6 consult bilaterally with the country that issues such cur7 rency in order to facilitate the adoption of appropriate 

8 policies to address the fundamental misalignment. 

9 (b) CONSULTATIONS INVOLVING CURRENCIES DES10 IGNATED FOR PRIORITY ACTION.—With respect to each 

11 currency designated for priority action pursuant to section 

12 4(a)(3), the Secretary shall, in addition to seeking to con13 sult with a country pursuant to subsection (a)— 

14 (1) seek the advice of the International Mone15 tary Fund with respect to the Secretary’s findings in 

16 the report submitted to Congress pursuant to section 

17 3(a); and 

18 (2) encourage other governments, whether bilat19 erally or in appropriate multinational fora, to join 

20 the United States in seeking the adoption of appro21 priate policies by the country described in subsection 

22 (a) to eliminate the fundamental misalignment. 

23 SEC. 6. FAILURE TO ADOPT APPROPRIATE POLICIES. 

24 (a) IN GENERAL.—Not later than 90 days after the 

25 date on which a currency is designated for priority action 
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1 pursuant to section 4(a)(3), the Secretary shall determine 

2 whether the country that issues such currency has adopted 

3 appropriate policies, and taken identifiable action, to 

4 eliminate the fundamental misalignment. The Secretary 

5 shall promptly notify Congress of such determination and 

6 publish notice of the determination in the Federal Reg7 ister. If the Secretary determines that the country that 

8 issues such currency has failed to adopt appropriate poli9 cies, or take identifiable action, to eliminate the funda10 mental misalignment, the following shall apply with re11 spect to the country until a notification described in sec12 tion 7(b) is published in the Federal Register: 

13 (1) ADJUSTMENT UNDER ANTIDUMPING LAW.— 

14 For purposes of an antidumping investigation under 

15 subtitle B of title VII of the Tariff Act of 1930 (19 

16 U.S.C. 1673 et seq.), or a review under subtitle C 

17 of such Act (19 U.S.C. 1675 et seq.), the following 

18 shall apply: 

19 (A) IN GENERAL.—The administering au20 thority shall ensure a fair comparison between 

21 the export price and the normal value by ad22 justing the price used to establish export price 

23 or constructed export price to reflect the funda24 mental misalignment of the currency of the ex25 porting country. 
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1 (B) SALES SUBJECT TO ADJUSTMENT.— 

2 The adjustment described in subparagraph (A) 

3 shall apply with respect to subject merchandise 

4 sold on or after the date that is 30 days after 

5 the date the currency of the exporting country 

6 is designated for priority action pursuant to 

7 section 4(a)(3). 

8 (2) FEDERAL PROCUREMENT.— 

9 (A) IN GENERAL.—The President shall 

10 prohibit the procurement by the Federal Gov11 ernment of products or services from the coun12 try. 

13 (B) EXCEPTION.—The prohibition pro14 vided for in subparagraph (A) shall not apply 

15 with respect to a country that is a party to the 

16 Agreement on Government Procurement. 

17 (3) REQUEST FOR IMF ACTION.—The United 

18 States shall inform the Managing Director of the 

19 International Monetary Fund of the failure of the 

20 country to adopt appropriate policies, or to take 

21 identifiable action, to eliminate the fundamental mis22 alignment, and the actions the country is engaging 

23 in that are identified in section 4(a)(3), and shall re24 quest that the Managing Director of the Inter25 national Monetary Fund— 
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1 (A) consult with such country regarding 

2 the observance of the country’s obligations 

3 under article IV of the International Monetary 

4 Fund Articles of Agreement, including through 

5 special consultations, if necessary; and 

6 (B) formally report the results of such con7 sultations to the Executive Board of the Inter8 national Monetary Fund within 180 days of the 

9 date of such request. 

10 (4) OPIC FINANCING.—The Overseas Private 

11 Investment Corporation shall not approve any new 

12 financing (including insurance, reinsurance, or guar13 antee) with respect to a project located within the 

14 country. 

15 (5) MULTILATERAL BANK FINANCING.— 

16 (A) IN GENERAL.—The Secretary shall in17 struct the United States Executive Director at 

18 each multilateral bank to oppose the approval 

19 of any new financing (including loans, other 

20 credits, insurance, reinsurance, or guarantee) to 

21 the government of the country or for a project 

22 located within the country. 

23 (B) MULTILATERAL BANK.—The term 

24 ‘‘multilateral bank’’ includes each of the inter25 national financial institutions described in sec-
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1 tion 1701(c)(2) of the International Financial 

2 Institutions Act (22 U.S.C. 262r). 

3 (b) WAIVER.— 

4 (1) IN GENERAL.—The President may waive 

5 any action provided for under subsection (a) if the 

6 President determines that— 

7 (A) taking such action would cause serious 

8 harm to the national security of the United 

9 States; or 

10 (B) it is in the vital economic interest of 

11 the United States to do so and taking such ac12 tion would have an adverse impact on the 

13 United States economy greater than the bene14 fits of such action. 

15 (2) NOTIFICATION.—The President shall 

16 promptly notify Congress of a determination under 

17 paragraph (1) (and the reasons for the determina18 tion, if made under paragraph (1)(B)) and shall 

19 publish notice of the determination (and the reasons 

20 for the determination, if made under paragraph 

21 (1)(B)) in the Federal Register. 

22 (c) REPORTS.—The Secretary shall describe any ac23 tion or determination pursuant to subsection (a) or (b) 

24 in the first semiannual report required by section 3 after 

25 the date of such action or determination. 
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1 SEC. 7. PERSISTENT FAILURE TO ADOPT APPROPRIATE 

2 POLICIES. 

3 (a) PERSISTENT FAILURE TO ADOPT APPROPRIATE

4 POLICIES.—Not later than 360 days after the date on 

5 which a currency is designated for priority action pursuant 

6 to section 4(a)(3), the Secretary shall determine whether 

7 the country that issues such currency has adopted appro8 priate policies, and taken identifiable action, to eliminate 

9 the fundamental misalignment. The Secretary shall 

10 promptly notify Congress of such determination and shall 

11 publish notice of the determination in the Federal Reg12 ister. If the Secretary determines that the country that 

13 issues such currency has failed to adopt appropriate poli14 cies, or take identifiable action, to eliminate the funda15 mental misalignment, in addition to the actions described 

16 in section 6(a), the following shall apply with respect to 

17 the country until a notification described in subsection (b) 

18 is published in the Federal Register: 

19 (1) ACTION AT THE WTO.—The United States 

20 Trade Representative shall request consultations in 

21 the World Trade Organization with the country re22 garding the consistency of the country’s actions with 

23 its obligations under the WTO Agreement. 

24 (2) REMEDIAL INTERVENTION.— 

25 (A) IN GENERAL.—The Secretary shall 

26 consult with the Board of Governors of the 
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1 Federal Reserve System to consider under2 taking remedial intervention in international 

3 currency markets in response to the funda4 mental misalignment of the currency designated 

5 for priority action, and coordinating such inter6 vention with other monetary authorities and the 

7 International Monetary Fund. In doing so, the 

8 Secretary shall consider the impact of such 

9 intervention on domestic economic growth and 

10 stability, including the impact on interest rates. 

11 (B) NOTICE TO COUNTRY.—At the same 

12 time the Secretary takes action under subpara13 graph (A), the Secretary shall notify the coun14 try that issues such currency of the consulta15 tions under subparagraph (A). 

16 (b) NOTIFICATION.—The Secretary shall promptly 

17 notify Congress when a country that issues a currency des18 ignated for priority action pursuant to section 4(a)(3) 

19 adopts appropriate policies, or takes identifiable action, to 

20 eliminate the fundamental misalignment, and publish no21 tice of the action of that country in the Federal Register. 

22 (c) WAIVER.— 

23 (1) IN GENERAL.—The President may waive 

24 any action provided for under this section, or extend 
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1 any waiver provided for under section 6(b), if the 

2 President determines that— 

3 (A) taking such action would cause serious 

4 harm to the national security of the United 

5 States; or 

6 (B) it is in the vital economic interest of 

7 the United States to do so, and that taking 

8 such action would have an adverse impact on 

9 the United States economy substantially out of 

10 proportion to the benefits of such action. 

11 (2) NOTIFICATION.—The President shall 

12 promptly notify Congress of a determination under 

13 paragraph (1) (and the reasons for the determina14 tion, if made under paragraph (1)(B)) and shall 

15 publish notice of the determination (and the reasons 

16 for the determination, if made under paragraph 

17 (1)(B)) in the Federal Register. 

18 (d) DISAPPROVAL OF WAIVER.—If the President 

19 waives an action pursuant to subsection (c)(1)(B), or ex20 tends a waiver provided for under section 6(b)(1)(B), the 

21 waiver shall cease to have effect upon the enactment of 

22 a resolution of disapproval described in section 8(a)(2). 

23 (e) REPORTS.—The Secretary shall describe any ac24 tion or determination pursuant to subsection (a), (b), or 
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1 (c) in the first semiannual report required by section 3 

2 after the date of such action or determination. 

3 SEC. 8. CONGRESSIONAL DISAPPROVAL OF WAIVER. 

4 (a) RESOLUTION OF DISAPPROVAL.— 

5 (1) INTRODUCTION.—If a resolution of dis6 approval is introduced in the House of Representa7 tives or the Senate during the 90-day period (not 

8 counting any day which is excluded under section 

9 154(b)(1) of the Trade Act of 1974 (19 U.S.C. 

10 2194(b)(1))), beginning on the date on which the 

11 President first notifies Congress of a determination 

12 to waive action with respect to a country pursuant 

13 to section 7(c)(1)(B), that resolution of disapproval 

14 shall be considered in accordance with this sub15 section. 

16 (2) RESOLUTION OF DISAPPROVAL.—In this 

17 subsection, the term ‘‘resolution of disapproval’’ 

18 means only a joint resolution of the two Houses of 

19 the Congress, the sole matter after the resolving 

20 clause of which is as follows: ‘‘That Congress does 

21 not approve the determination of the President 

22 under lllllllllll of the Currency 

23 Exchange Rate Oversight Reform Act of 2011 with 

24 respect to llllll, of which Congress was no25 tified on lllll.’’, with the first blank space 
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1 being filled section 7(c)(1)(B) or section 6(b)(1)(B), 

2 whichever is applicable, the second blank space being 

3 filled with the name of the appropriate country, and 

4 the third blank space being filled with the appro5 priate date. 

6 (3) PROCEDURES FOR CONSIDERING RESOLU7 TIONS.— 

8 (A) INTRODUCTION AND REFERRAL.—Res9 olutions of disapproval— 

10 (i) in the House of Representatives— 

11 (I) may be introduced by any 

12 Member of the House; 

13 (II) shall be referred to the Com14 mittee on Financial Services and, in 

15 addition, to the Committee on Rules; 

16 and 

17 (III) may not be amended by ei18 ther Committee; and 

19 (ii) in the Senate— 

20 (I) may be introduced by any 

21 Member of the Senate; 

22 (II) shall be referred to the Com23 mittee on Banking, Housing, and 

24 Urban Affairs; and 

25 (III) may not be amended. 
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1 (B) COMMITTEE DISCHARGE AND FLOOR

2 CONSIDERATION.—The provisions of sub3 sections (c) through (f) of section 152 of the 

4 Trade Act of 1974 (other than paragraph (3) 

5 of such subsection (f)) (19 U.S.C. 2192 (c) 

6 through (f)) (relating to committee discharge 

7 and floor consideration of certain resolutions in 

8 the House and Senate) apply to a resolution of 

9 disapproval under this section to the same ex10 tent as such subsections apply to joint resolu11 tions under such section 152. 

12 (b) RULES OF HOUSE OF REPRESENTATIVES AND

13 SENATE.—This section is enacted by Congress— 

14 (1) as an exercise of the rulemaking power of 

15 the House of Representatives and the Senate, re16 spectively, and as such is deemed a part of the rules 

17 of each House, respectively, and the rules provided 

18 for in this section supersede other rules only to the 

19 extent that they are inconsistent with such other 

20 rules; and 

21 (2) with the full recognition of the constitu22 tional right of either House to change the rules pro23 vided for in this section (so far as relating to the 

24 procedures of that House) at any time, in the same 
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1 manner, and to the same extent as any other rule 

2 of that House. 

3 SEC. 9. INTERNATIONAL FINANCIAL INSTITUTION GOVERN4 ANCE ARRANGEMENTS. 

5 (a) INITIAL REVIEW.—Notwithstanding any other 

6 provision of law, before the United States approves a pro7 posed change in the governance arrangement of any inter8 national financial institution, as defined in section 

9 1701(c)(2) of the International Financial Institutions Act 

10 (22 U.S.C. 262r(c)(2)), the Secretary shall determine 

11 whether any member of the international financial institu12 tion that would benefit from the proposed change, in the 

13 form of increased voting shares or representation, has a 

14 currency that was designated a currency for priority action 

15 pursuant to section 4(a)(3) in the most recent report re16 quired by section 3. The determination shall be reported 

17 to Congress. 

18 (b) SUBSEQUENT ACTION.—The United States shall 

19 oppose any proposed change in the governance arrange20 ment of the international financial institution (described 

21 in subsection (a)), if the Secretary renders an affirmative 

22 determination pursuant to subsection (a). 

23 (c) FURTHER ACTION.—The United States shall con24 tinue to oppose any proposed change in the governance 

25 arrangement of the international financial institution, pur-
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1 suant to subsection (b), until the Secretary determines 

2 and reports to Congress that the proposed change would 

3 not benefit any member of the international financial insti4 tution, in the form of increased voting shares or represen5 tation, that has a currency that is designated a currency 

6 for priority action pursuant to section 4(a)(3). 

7 SEC. 10. ADJUSTMENT FOR FUNDAMENTALLY MISALIGNED 

8 CURRENCY DESIGNATED FOR PRIORITY AC9 TION. 

10 (a) IN GENERAL.—Subsection (c)(2) of section 772 

11 of the Tariff Act of 1930 (19 U.S.C. 1677a(c)(2)) is 

12 amended— 

13 (1) by striking ‘‘and’’ at the end of subpara14 graph (A); 

15 (2) by striking the period at the end of sub16 paragraph (B) and inserting ‘‘, and’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(C) if required by section 6(a)(1) of the 

19 Currency Exchange Rate Oversight Reform Act 

20 of 2011, the percentage by which the domestic 

21 currency of the producer or exporter is under22 valued in relation to the United States dollar as 

23 determined under section 771(37).’’. 
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1 (b) CALCULATION METHODOLOGY.—Section 771 of 

2 the Tariff Act of 1930 (19 U.S.C. 1677) is amended by 

3 adding at the end the following: 

4 ‘‘(37) PERCENTAGE UNDERVALUATION.—The 

5 administering authority shall determine the percent6 age by which the domestic currency of the producer 

7 or exporter is undervalued in relation to the United 

8 States dollar by comparing the nominal value associ9 ated with the medium-term equilibrium exchange 

10 rate of the domestic currency of the producer or ex11 porter, identified by the Secretary pursuant to sec12 tion 3(b)(7) of the Currency Exchange Rate Over13 sight Reform Act of 2011, to the official daily ex14 change rate identified by the administering author15 ity.’’. 

16 SEC. 11. CURRENCY UNDERVALUATION UNDER COUNTER17 VAILING DUTY LAW. 

18 (a) INVESTIGATION OR REVIEW.—Subsection (c) of 

19 section 702 of the Tariff Act of 1930 (19 U.S.C. 

20 1671a(c)) is amended by adding at the end the following: 

21 ‘‘(6) CURRENCY UNDERVALUATION.—For pur22 poses of a countervailing duty investigation under 

23 this subtitle where the determinations under clauses 

24 (i) and (ii) of paragraph (1)(A) are affirmative, or 
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1 a review under subtitle C of this title, the following 

2 shall apply: 

3 ‘‘(A) IN GENERAL.—The administering au4 thority shall initiate an investigation to deter5 mine whether currency undervaluation by the 

6 government of a country or any public entity 

7 within the territory of a country is providing, 

8 directly or indirectly, a countervailable subsidy 

9 as described in section 771(5), if— 

10 ‘‘(i) a petition filed by an interested 

11 party (described in subparagraph (C), (D), 

12 (E), (F), or (G) of section 771(9)) alleges 

13 the elements necessary for the imposition 

14 of the duty imposed by section 701(a); and 

15 ‘‘(ii) the petition is accompanied by 

16 information reasonably available to the pe17 titioner supporting those allegations. 

18 ‘‘(B) DESIGNATION OF FUNDAMENTALLY

19 MISALIGNED CURRENCY FOR PRIORITY AC20 TION.—Upon designation of a currency as a 

21 fundamentally misaligned currency for priority 

22 action pursuant to section 4(a)(3) of the Cur23 rency Exchange Rate Oversight Reform Act of 

24 2011, the administering authority shall initiate 

25 an investigation to determine whether the coun-
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1 try that issues such currency is providing, di2 rectly or indirectly, a countervailable subsidy as 

3 defined in section 771(5), if— 

4 ‘‘(i) a petition filed by an interested 

5 party (described in subparagraph (C), (D), 

6 (E), (F), or (G) of section 771(9)) alleges 

7 the elements necessary for the imposition 

8 of the duty imposed by section 701(a); and 

9 ‘‘(ii) the petition is accompanied by 

10 information reasonably available to the pe11 titioner supporting those allegations.’’. 

12 (b) BENEFIT CALCULATION METHODOLOGY.—Sec13 tion 771 of the Tariff Act of 1930 (19 U.S.C. 1677), as 

14 amended by section 10(b), is further amended by adding 

15 at the end the following: 

16 ‘‘(38) CURRENCY UNDERVALUATION BEN17 EFIT.—For purposes of a countervailing duty inves18 tigation under subtitle A of this title, or a review 

19 under subtitle C of this title, the following shall 

20 apply: 

21 ‘‘(A) IN GENERAL.—If the administering 

22 authority determines to investigate whether cur23 rency undervaluation is a countervailable sub24 sidy as defined in section 771(5), the admin25 istering authority shall determine whether there 
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1 is a benefit to the recipient and measure such 

2 benefit by comparing the simple average of the 

3 real exchange rates derived from application of 

4 the macroeconomic-balance approach and the 

5 equilibrium-real-exchange-rate approach to the 

6 official daily exchange rate identified by the ad7 ministering authority. The administering au8 thority shall rely upon data that are publicly 

9 available, reliable, and compiled and maintained 

10 by the International Monetary Fund or the 

11 World Bank, or other international organiza12 tions or national governments if International 

13 Monetary Fund or World Bank data is not 

14 available. 

15 ‘‘(B) DESIGNATION OF FUNDAMENTALLY

16 MISALIGNED CURRENCY FOR PRIORITY AC17 TION.—In the case of designation of a currency 

18 as a fundamentally misaligned currency for pri19 ority action pursuant to section 4(a)(3) of the 

20 Currency Exchange Rate Oversight Reform Act 

21 of 2011, the administering authority shall de22 termine whether there is a benefit to the recipi23 ent and measure such benefit by comparing the 

24 nominal value associated with the medium-term 

25 equilibrium exchange rate of the currency of the 
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1 exporting country, identified by the Secretary 

2 pursuant to section 3(b)(7) of such Act, to the 

3 official daily exchange rate identified by the ad4 ministering authority. 

5 ‘‘(C) DEFINITIONS.— 

6 ‘‘(i) MACROECONOMIC-BALANCE AP7 PROACH.—The term ‘macroeconomic-bal8 ance approach’ means a methodology 

9 under which the level of undervaluation of 

10 the real effective exchange rate of the ex11 porting country’s currency is defined as 

12 the change in the real effective exchange 

13 rate needed to achieve equilibrium in the 

14 exporting country’s balance of payments, 

15 as such methodology is described in the 

16 guidelines of the International Monetary 

17 Fund’s Consultative Group on Exchange 

18 Rate Issues, if available. 

19 ‘‘(ii) EQUILIBRIUM-REAL-EXCHANGE20 RATE APPROACH.—The term ‘equilibrium21 real-exchange-rate approach’ means a 

22 methodology under which the level of 

23 undervaluation of the real effective ex24 change rate of the exporting country’s cur25 rency is defined as the difference between 
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1 the observed real effective exchange rate 

2 and the real effective exchange rate, as 

3 such methodology is described in the guide4 lines of the International Monetary Fund’s 

5 Consultative Group on Exchange Rate 

6 Issues, if available. 

7 ‘‘(iii) REAL EXCHANGE RATES.—The 

8 term ‘real exchange rates’ means the bilat9 eral exchange rates derived from con10 verting the trade-weighted multilateral ex11 change rates yielded by the macro12 economic-balance approach and the equi13 librium-real-exchange-rate approach into 

14 real bilateral terms.’’. 

15 (c) EXPORT SUBSIDY.—Section 771(5A)(B) of the 

16 Tariff Act of 1930 (19 U.S.C. 1677(5A)(B)) is amended 

17 by adding at the end the following new sentence: ‘‘The 

18 fact that a subsidy may also be provided in circumstances 

19 that do not involve export shall not, for that reason alone, 

20 mean that the subsidy cannot be considered contingent 

21 upon export performance.’’. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section apply to countervailing duty investigations ini24 tiated under subtitle A of title VII of the Tariff Act of 

25 1930 (19 U.S.C. 1671 et seq.) and reviews initiated under 
28 

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1 subtitle C of title VII of such Act (19 U.S.C. 1675 et seq.) 

2 before, on, or after the date of the enactment of this Act. 

3 SEC. 12. NONMARKET ECONOMY STATUS. 

4 Paragraph (18)(B) of section 771 of the Tariff Act 

5 of 1930 (19 U.S.C. 1677(18)(B)) is amended— 

6 (1) by striking ‘‘and’’ at the end of clause (v); 

7 and 

8 (2) by redesignating clause (vi) as clause (vii) 

9 and inserting after clause (v) the following: 

10 ‘‘(vi) whether the currency of the for11 eign country is designated, or has been 

12 designated at any time over the 5 years 

13 prior to review of nonmarket economy sta14 tus, a currency for priority action pursuant 

15 to section 4(a)(3) of the Currency Ex16 change Rate Oversight Reform Act of 

17 2011, and’’. 

18 SEC. 13. APPLICATION TO CANADA AND MEXICO. 

19 Pursuant to article 1902 of the North American Free 

20 Trade Agreement and section 408 of the North American 

21 Free Trade Agreement Implementation Act (19 U.S.C. 

22 3438), section 6(a)(1) and the amendments made by sec23 tions 10, 11, and 12 shall apply with respect to goods from 

24 Canada and Mexico. 
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1 SEC. 14. ADVISORY COMMITTEE ON INTERNATIONAL EX2 CHANGE RATE POLICY. 

3 (a) ESTABLISHMENT.— 

4 (1) IN GENERAL.—There is established an Ad5 visory Committee on International Exchange Rate 

6 Policy (in this section referred to as the ‘‘Com7 mittee’’). The Committee shall be responsible for— 

8 (A) advising the Secretary in the prepara9 tion of each report to Congress on international 

10 monetary policy and currency exchange rates, 

11 provided for in section 3; and 

12 (B) advising Congress and the President 

13 with respect to— 

14 (i) international exchange rates and 

15 financial policies; and 

16 (ii) the impact of such policies on the 

17 economy of the United States. 

18 (2) MEMBERSHIP.— 

19 (A) IN GENERAL.—The Committee shall be 

20 composed of 9 members as follows, none of 

21 whom shall be employees of the Federal Gov22 ernment: 

23 (i) CONGRESSIONAL APPOINTEES.— 

24 (I) SENATE APPOINTEES.—Four 

25 persons shall be appointed by the 

26 President pro tempore of the Senate, 
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1 upon the recommendation of the 

2 chairmen and ranking members of the 

3 Committee on Banking, Housing, and 

4 Urban Affairs and the Committee on 

5 Finance of the Senate. 

6 (II) HOUSE APPOINTEES.—Four 

7 persons shall be appointed by the 

8 Speaker of the House of Representa9 tives upon the recommendation of the 

10 chairmen and ranking members of the 

11 Committee on Financial Services and 

12 the Committee on Ways and Means of 

13 the House of Representatives. 

14 (ii) PRESIDENTIAL APPOINTEE.—One 

15 person shall be appointed by the President. 

16 (B) QUALIFICATIONS.—Persons shall be 

17 selected under subparagraph (A) on the basis of 

18 their objectivity and demonstrated expertise in 

19 finance, economics, or currency exchange. 

20 (3) TERMS.—Members shall be appointed for a 

21 term of 4 years or until the Committee terminates. 

22 An individual may be reappointed to the Committee 

23 for additional terms. 
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1 (4) VACANCIES.—Any vacancy in the Com2 mittee shall not affect its powers, but shall be filled 

3 in the same manner as the original appointment. 

4 (b) DURATION OF COMMITTEE.—Notwithstanding 

5 section 14(c) of the Federal Advisory Committee Act (5 

6 U.S.C. App.), the Committee shall terminate on the date 

7 that is 4 years after the date of the enactment of this 

8 Act unless renewed by the President pursuant to section 

9 14 of the Federal Advisory Committee Act (5 U.S.C. 

10 App.) for a subsequent 4-year period. The President may 

11 continue to renew the Committee for successive 4-year pe12 riods by taking appropriate action prior to the date on 

13 which the Committee would otherwise terminate. 

14 (c) PUBLIC MEETINGS.—The Committee shall hold 

15 at least 2 public meetings each year for the purpose of 

16 accepting public comments, including comments from 

17 small business owners. The Committee shall also meet as 

18 needed at the call of the Secretary or at the call of two19 thirds of the members of the Committee. 

20 (d) CHAIRPERSON.—The Committee shall elect from 

21 among its members a chairperson for a term of 4 years 

22 or until the Committee terminates. A chairperson of the 

23 Committee may be reelected chairperson but is ineligible 

24 to serve consecutive terms as chairperson. 
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1 (e) STAFF.—The Secretary shall make available to 

2 the Committee such staff, information, personnel, admin3 istrative services, and assistance as the Committee may 

4 reasonably require to carry out its activities. 

5 (f) APPLICATION OF FEDERAL ADVISORY COM6 MITTEE ACT.— 

7 (1) IN GENERAL.—The provisions of the Fed8 eral Advisory Committee Act (5 U.S.C. App.) shall 

9 apply to the Committee. 

10 (2) EXCEPTION.—Except for the 2 annual pub11 lic meetings required under subsection (c), meetings 

12 of the Committee shall be exempt from the require13 ments of subsections (a) and (b) of sections 10 and 

14 11 of the Federal Advisory Committee Act (relating 

15 to open meetings, public notice, public participation, 

16 and public availability of documents), whenever and 

17 to the extent it is determined by the President or the 

18 Secretary that such meetings will be concerned with 

19 matters the disclosure of which would seriously com20 promise the development by the United States Gov21 ernment of monetary and financial policy. 
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1 SEC. 15. REPEAL OF THE EXCHANGE RATES AND ECO2 NOMIC POLICY COORDINATION ACT OF 1988. 

3 The Exchange Rates and International Economic 

4 Policy Coordination Act of 1988 (22 U.S.C. 5301 et seq.) 

5 is repealed. 

Passed the Senate October 11, 2011. 

Attest: 

Secretary. 
112TH CONGRESS 

1ST SESSION S. 1619 

AN ACT 

To provide for identification of misaligned currency, 

for other purposes. require action to correct the misalignment, and