II 

110TH CONGRESS 

1ST SESSION S. 1677 

To amend the Exchange Rates and International Economic Coordination 

Act of 1988 and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 21, 2007 

Mr. DODD (for himself, Mr. SHELBY, Mr. BAYH, Mr. BUNNING, Mr. CARPER, 

Mr. BROWN, Mr. CASEY, and Ms. STABENOW) 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 

Coordination Act of 1988 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Currency Reform and 

5 Financial Markets Access Act of 2007’’. 


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1 TITLE I—EXCHANGE RATES AND 

2 INTERNATIONAL ECONOMIC 

3 POLICY COORDINATION ACT 

4 OF 1988 

5 SEC. 101. STATEMENT OF POLICY. 

6 Section 3003 of the Exchange Rates and Inter7 national Economic Policy Coordination Act of 1988 (22 

8 U.S.C. 5303) is amended— 

9 (1) by striking ‘‘and’’ at the end of paragraph 

10 (3); 

11 (2) by striking the period at the end of para12 graph (4) and inserting a semicolon; and 

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

14 ‘‘(5) the United States, and other major indus15 trialized countries, should, where appropriate, work 

16 together, through bilateral and multilateral discus17 sions and international economic institutions, to en18 sure that the rate of exchange of the currencies of 

19 the major trading nations and the United States dol20 lar— 

21 ‘‘(A) reflect economic fundamentals and 

22 market forces; and 

23 ‘‘(B) contribute to the growth and balance 

24 of the international economy; and 


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1 ‘‘(6) the United States should take all appro2 priate and necessary measures to ensure that the 

3 major trading partners of the United States are not 

4 engaged in hidden or unfair subsidies through man5 agement of their currency or international exchange 

6 rates.’’. 

7 SEC. 102. FAIR CURRENCY. 

8 (a) IN GENERAL.—Section 3004(b) of the Exchange 

9 Rates and International Economic Policy Coordination 

10 Act of 1988 (22 U.S.C. 5304(b)) is amended to read as 

11 follows: 

12 ‘‘(b) BILATERAL NEGOTIATIONS.— 

13 ‘‘(1) ANALYSIS.—The Secretary of the Treas14 ury shall analyze on an annual basis the exchange 

15 rate policies of foreign countries, in consultation 

16 with the International Monetary Fund, and consider 

17 whether any country, regardless of intent, manipu18 lates the rate of exchange between its currency and 

19 the United States dollar in a manner that— 

20 ‘‘(A) prevents effective balance of pay21 ments adjustments; 

22 ‘‘(B) gains an unfair competitive advan23 tage in international trade; or 

24 ‘‘(C) results in an accumulation of sub25 stantial dollar currency reserves. 


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1 ‘‘(2) DETERMINATION.—The Secretary shall 

2 make an affirmative determination that a country is 

3 manipulating its currency and take the action de4 scribed in paragraphs (3), (4), and (5) with respect 

5 to any country the Secretary considers is manipu6 lating its currency as described in paragraph (1), if 

7 that country— 

8 ‘‘(A) has a material global current account 

9 surplus; 

10 ‘‘(B) has significant bilateral trade sur11 pluses with the United States; and 

12 ‘‘(C) has engaged in prolonged one-way 

13 intervention in the currency markets. 

14 ‘‘(3) ACTION.— 

15 ‘‘(A) IN GENERAL.—In the case of any 

16 country with respect to which the Secretary 

17 makes an affirmative determination under para18 graph (2), the Secretary shall, not later than 30 

19 days after the determination is made, establish 

20 a plan of action to remedy the currency manip21 ulation, and submit a report regarding that 

22 plan, to the Committee on Banking, Housing, 

23 and Urban Affairs of the Senate and the Com24 mittee on Financial Services of the House of 

25 Representatives. 


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1 ‘‘(B) BENCHMARKS.—The report described 

2 in subparagraph (A) shall include specific 

3 benchmarks and timeframes for correcting the 

4 currency manipulation. 

5 ‘‘(4) INITIAL NEGOTIATIONS.—The Secretary 

6 shall initiate, on an expedited basis, bilateral nego7 tiations with each country with respect to which an 

8 affirmative determination is made under paragraph 

9 (2) for the purpose of ensuring that the country reg10 ularly and promptly adjusts the rate of exchange be11 tween its currency and the United States dollar to 

12 permit effective balance of payment adjustments and 

13 to eliminate the unfair competitive advantage. 

14 ‘‘(5) COORDINATION WITH THE INTER15 NATIONAL MONETARY FUND.—The Secretary, within 

16 30 days of the determination made under paragraph 

17 (2), shall instruct the Executive Director to the 

18 International Monetary Fund to use the voice and 

19 vote of the United States, including requesting con20 sultations under Article IV of the Articles of Agree21 ment of the International Monetary Fund, for the 

22 purpose of ensuring that each country with respect 

23 to which an affirmative determination is made under 

24 paragraph (2) regularly and promptly adjusts the 

25 rate of exchange between its currency and the 


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1 United States dollar to permit effective balance of 

2 payments adjustments and to eliminate the unfair 

3 competitive advantage in trade. 

4 ‘‘(6) FOLLOW-UP REPORT.—Not later than 300 

5 days after an affirmative determination is made 

6 under paragraph (2), if the country with respect to 

7 which the affirmative determination is made con8 tinues to manipulate the rate of exchange between 

9 its currency and the United States dollar and the 

10 benchmarks in the report required under paragraph 

11 (3) have not been met, the Secretary shall initiate 

12 action pursuant to the Understanding on Rules and 

13 Procedures Governing the Settlement of Disputes 

14 annexed to the WTO Agreement to address the 

15 country’s currency manipulation and violations of 

16 the country’s obligations under article XV of GATT 

17 1994. 

18 ‘‘(7) EXCEPTION.—The Secretary is not re19 quired to initiate action in any case in which the 

20 President determines that the action will have a seri21 ous detrimental impact on the vital economic and se22 curity interests of the United States. If the Presi23 dent makes a determination under the preceding 

24 sentence, the President shall inform the chairman 

25 and the ranking minority member of the Committee 


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1 on Banking, Housing, and Urban Affairs of the Sen2 ate and of the Committee on Financial Services of 

3 the House of Representatives of the President’s de4 termination.’’. 

5 (b) DEFINITIONS.—Section 3006 of the Exchange 

6 Rates and International Economic Coordination Act of 

7 1988 (22 U.S.C. 5306) is amended by adding at the end 

8 the following: 

9 ‘‘(3) GATT 1994.—The term ‘GATT 1994’ has 

10 the meaning given such term in section 2(1)(B) of 

11 the Uruguay Round Agreements Act (19 U.S.C. 

12 3501(1)(B)). 

13 ‘‘(4) WTO AGREEMENT.—The term ‘WTO 

14 Agreement’ means the Agreement Establishing the 

15 World Trade Organization entered into on April 15, 

16 1994.’’. 

17 SEC. 103. REPORTING REQUIREMENTS. 

18 Section 3005 of the Exchange Rates and Inter19 national Economic Policy Coordination Act of 1988 (22 

20 U.S.C. 5305) is amended— 

21 (1) in subsection (a)— 

22 (A) by striking ‘‘In furtherance’’ and in23 serting the following: 

24 ‘‘(1) IN GENERAL.—In furtherance’’; and 

25 (B) by striking the last sentence; and 


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1 (2) by adding at the end the following: 

2 ‘‘(2) APPEARANCES BEFORE THE CONGRESS.— 

3 The Secretary shall appear before the Congress at 

4 semi-annual hearings to provide testimony on the re5 ports referred to in paragraph (1)— 

6 ‘‘(A) before the Committee on Banking, 

7 Housing and Urban Affairs of the Senate on or 

8 about October 15 of each even numbered cal9 endar year and on or about April 15 of each 

10 odd numbered calendar year; 

11 ‘‘(B) before the Committee on Financial 

12 Services of the House of Representatives on or 

13 about April 15 of each even numbered calendar 

14 year and on or about October 15 of each odd 

15 numbered calendar year; and 

16 ‘‘(C) before either Committee referred to in 

17 subparagraph (A) or (B), upon request of the 

18 Chairman, following the scheduled appearance 

19 of the Secretary before the other Committee.’’. 

20 SEC. 104. CONGRESSIONAL DETERMINATION OF CURRENCY 

21 MANIPULATION. 

22 The Exchange Rates and International Economic 

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

24 is amended by inserting after section 3004 the following: 


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1 ‘‘SEC. 3004A. ACTION BASED ON COMMITTEE RESOLUTION. 

2 ‘‘(a) IN GENERAL.—In this section, the term ‘joint 

3 resolution’ means only a joint resolution introduced in the 

4 period beginning on the date on which the report referred 

5 to section 3004(b)(3) of the Exchange Rates and Inter6 national Economic Policy Coordination Act of 1988 is re7 ceived by the Committee on Banking, Housing and Urban 

8 Affairs of the Senate or the Committee on Financial Serv9 ices of the House of Representatives and ending 60 days 

10 thereafter (excluding days either House of Congress is ad11 journed for more than 3 days during a session of Con12 gress), the matter after the resolving clause of which is 

13 as follows: ‘That Congress disapproves of the determina14 tion of the Secretary of the Treasury relating to the find15 ing of currency manipulation as described in section 

16 3004(b) of the Exchange Rates and International Eco17 nomic Policy Coordination Act of 1988 in the report relat18 ing to llllllll, submitted on 

19 lllllllllll.’, with the first blank space 

20 being filled with the name of the country (or countries) 

21 to which the determination relates and the second blank 

22 space being filled with the date the report was submitted. 

23 ‘‘(b) PROCEDURES FOR CONSIDERING RESOLU24 TIONS.— 

25 ‘‘(1) ORIGINAL RESOLUTIONS.—Resolutions of 

26 disapproval shall be original resolutions, which— 


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1 ‘‘(A) in the House of Representatives shall 

2 originate from the Committee on Financial 

3 Services and, in addition, be referred to the 

4 Committee on Rules; and 

5 ‘‘(B) in the Senate shall originate from the 

6 Committee on Banking, Housing, and Urban 

7 Affairs. 

8 ‘‘(2) FLOOR CONSIDERATION.— 

9 ‘‘(A) IN GENERAL.—Except as otherwise 

10 provided in this section, the provisions of sub11 sections (d) through (f) of section 152 of the 

12 Trade Act of 1974 (19 U.S.C. 2192(d) through 

13 (f)) (relating to floor consideration of certain 

14 resolutions in the House and Senate) apply to 

15 a joint resolution of disapproval under this sec16 tion to the same extent as such subsections 

17 apply to joint resolutions under such section 

18 152. 

19 ‘‘(B) MODIFICATION OF SECTION 152.— 

20 Section 152(f) of the Trade Act of 1974 shall 

21 be applied— 

22 ‘‘(i) by substituting ‘described in sec23 tion 3004A of the Exchange Rates and 

24 International Economic Policy Coordina25 tion Act of 1988’ for ‘described in section 


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1 152 or 153(a), whichever is applicable,’ in 

2 paragraph (2); and 

3 ‘‘(ii) by substituting ‘a joint resolution 

4 described in section 3004A of the Ex5 change Rates and International Economic 

6 Policy Coordination Act of 1988’ for ‘a 

7 joint resolution described in subsection 

8 (a)(2)(B)’ in paragraph (3). 

9 ‘‘(c) RULES OF HOUSE OF REPRESENTATIVES AND

10 SENATE.—This section is enacted by the Congress— 

11 ‘‘(1) as an exercise of the rulemaking power of 

12 the House of Representatives and the Senate, re13 spectively, and as such are deemed a part of the 

14 rules of each House, respectively, and such proce15 dures supersede other rules only to the extent that 

16 they are inconsistent with such other rules; and 

17 ‘‘(2) with the full recognition of the constitu18 tional right of either House to change the rules (so 

19 far as relating to the procedures of that House) at 

20 any time, in the same manner, and to the same ex21 tent as any other rule of that House.’’. 


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1 TITLE II—FINANCIAL REPORTS 

2 ACT OF 1988 

3 SEC. 201. SHORT TITLE. 

4 This title may be cited as the ‘‘Promoting Market Ac5 cess for Financial Services Act’’. 

6 SEC. 202. REPORT ON FOREIGN TREATMENT OF UNITED 

7 STATES FINANCIAL INSTITUTIONS. 

8 The Financial Reports Act of 1988 (22 U.S.C. 5351 

9 et seq.) is amended— 

10 (1) in section 3602— 

11 (A) by striking ‘‘QUADRENNIAL’’ and in12 serting ‘‘ANNUAL’’ in the heading; 

13 (B) by striking ‘‘not less frequently than 

14 every 4 years, beginning December 1, 1990’’ 

15 and inserting ‘‘beginning July 1, 2008, and an16 nually thereafter,’’; and 

17 (C) by striking ‘‘to the Congress’’ and in18 serting ‘‘to the Committee on Banking, Hous19 ing, and Urban Affairs of the Senate and the 

20 Committee on Financial Services of the House 

21 of Representatives’’; 

22 (2) in section 3603— 

23 (A) by redesignating subsections (b), (c), 

24 and (d) as subsections (c), (d), and (e), respec25 tively; and 


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1 (B) by inserting after subsection (a), the 

2 following: 

3 ‘‘(b) REPORT ON SED.—The Secretary shall include 

4 in the initial report required under section 3602 a sum5 mary of the results of the most recent US–China Strategic 

6 Economic Dialogue (SED) and the results of the SED as 

7 it relates to promoting market access for financial institu8 tions. The reports required under section 3602 shall in9 clude a progress report on the implementation of any 

10 agreements resulting from the SED, a description of the 

11 remaining challenges, if any, in improving market access 

12 for financial institutions, and a plan, including bench13 marks and timeframes, for dealing with the remaining 

14 challenges. Each report shall specifically address issues re15 garding— 

16 ‘‘(1) foreign investment rules; 

17 ‘‘(2) the problems of a dual-share stock market; 

18 ‘‘(3) the openness of the derivatives market; 

19 ‘‘(4) restrictions on foreign bank branching; 

20 ‘‘(5) the ability to offer insurance (including in21 novative products); and 

22 ‘‘(6) regulatory and procedural transparency.’’. 

Æ 


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