III 

113TH CONGRESS 

2D SESSION S. RES. 448 

Expressing the sense of the Senate on the policy of the United States 

regarding stabilizing the currency of Ukraine. 

IN THE SENATE OF THE UNITED STATES 

MAY 15, 2014 

Mr. RUBIO (for himself and Mr. CRUZ) submitted the following resolution; 

which was referred to the Committee on Foreign Relations 

RESOLUTION 

Expressing the sense of the Senate on the policy of the 

United States regarding stabilizing the currency of Ukraine. 

Whereas the territorial integrity of Ukraine has been compromised by the unlawful annexation of Crimea by the 

Russian Federation; 

Whereas the territorial integrity of Ukraine continues to be 

under threat because of unlawful provocations by the 

Russian Federation; 

Whereas ongoing economic hardships in Ukraine are being 

exploited by unlawful separatist elements with allegiances 

to the Russian Federation; 

Whereas strengthening of the economy of Ukraine can help 

stabilize the unrest in the southern and eastern parts of 

Ukraine and support the territorial integrity of Ukraine; 


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•SRES 448 IS 

Whereas the Russian Federation has declared the Russian 

ruble to be legal tender in Crimea following its unlawful 

annexation of Crimea, to circulate in parallel with the 

hryvnia, the national currency of Ukraine, until January 

1, 2016; 

Whereas the Russian Federation will exploit currency competition between the ruble and the hryvnia during the period both currencies are in circulation in Crimea in an attempt to portray the Russian-controlled managed economy as superior to Western-style democracy and free 

markets; 

Whereas a stable national currency can be important to facilitate economic growth; 

Whereas the hryvnia dropped in value by 35 percent relative 

to the United States dollar between January and May 

2014; 

Whereas currency boards have a long record of promoting superior performance in countries with emerging markets 

by spurring higher economic growth rates, lower inflation 

rates, and more fiscal discipline than central banks that 

employ floating exchange rates; 

Whereas the establishment of a national currency board for 

Ukraine can generate a more stable currency and enhance demand for the hryvnia; 

Whereas, under a currency board, the hryvnia could be convertible into the United States dollar or the euro, both 

of which are dominant global reserve currencies; 

Whereas the ability to convert the hryvnia into the United 

States dollar or the euro would help make the hryvnia 

stable and its exchange more reliable; 


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•SRES 448 IS 

Whereas a stable national currency can boost investor confidence and make Ukraine less susceptible to destabilizing 

rhetoric from the Russian Federation; 

Whereas the International Monetary Fund has a long track 

record of supporting the establishment of currency boards 

and financial mechanisms that approximate currency 

boards, notably through the implementation of Article 

VII of Annex 4 of the General Framework Agreement for 

Peace in Bosnia and Herzegovina, initialed at Dayton, 

November 21, 1995 (commonly known as the ‘‘Dayton 

Peace Accords’’), which mandated a currency board for 

Bosnia and Herzegovina; 

Whereas the International Monetary Fund can provide the 

technical expertise necessary to ensure that a currency 

board run by monetary authorities in Ukraine is implemented properly; 

Whereas currency board systems have been designed for 

other countries in Europe with positive results, including 

Estonia, Lithuania, and Bosnia and Herzegovina; 

Whereas the United States Congress sent a strong message 

of solidarity with the people of Ukraine by passing the 

Support for the Sovereignty, Integrity, Democracy, and 

Economic Stability of Ukraine Act of 2014 (Public Law 

113–95; 128 Stat. 1088), which included financial assistance for Ukraine; and 

Whereas strengthening of the national currency of Ukraine 

and supporting the institution of a disciplined monetary 

regime would send a powerful signal of support for 

Ukraine: Now, therefore, be it 

1 Resolved, That it is the sense of the Senate that— 


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•SRES 448 IS 

1 (1) the United States and Ukraine should ex2 amine the benefits of implementing a currency board 

3 system as a way to stabilize the national currency of 

4 Ukraine and to improve the economy of Ukraine; 

5 and 

6 (2) if Ukraine decides to pursue the implemen7 tation of a currency board system, the United States 

8 Secretary of the Treasury should work with the 

9 International Monetary Fund to help create a cur10 rency board for Ukraine that can assist Ukraine to 

11 improve its economy. 

Æ 


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