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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 448 Introduced in Senate (IS)]

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;
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;
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
    Resolved, That it is the sense of the Senate that--
            (1) the United States and Ukraine should examine the 
        benefits of implementing a currency board system as a way to 
        stabilize the national currency of Ukraine and to improve the 
        economy of Ukraine; and
            (2) if Ukraine decides to pursue the implementation of a 
        currency board system, the United States Secretary of the 
        Treasury should work with the International Monetary Fund to 
        help create a currency board for Ukraine that can assist 
        Ukraine to improve its economy.
                                 <all>
```