I
103D CONGRESS
2D SESSION
H. R. 4502
To include additional exchange rate policy information in reports required
to be made by the Board of Governors of the Federal Reserve System
and the Secretary of the Treasury to the Congress, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
MAY 26, 1994
Mr. GONZALEZ (for himself, Mr. FRANK of Massachusetts, Mr. KANJORSKI,
and Mr. HINCHEY) introduced the following bill; which was referred to
the Committee on Banking, Finance and Urban Affairs
A BILL
To include additional exchange rate policy information in
reports required to be made by the Board of Governors
of the Federal Reserve System and the Secretary of
the Treasury to the Congress, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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 FED-
ERAL 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 GEN-
ERAL.—The Board of Governors of the Federal Re-
serve System’’; and
(2) by adding at the end the following new sub-
sections:
‘‘(b) PRESENTATION
OF REPORTS
TO
THE CON-
GRESS.—
‘‘(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 Fed-
eral Reserve System shall appear before the Com-
mittee 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 re-
quired under subsection (a).
‘‘(2) APPEARANCE WITH SECRETARY OF THE
TREASURY.—The Chairman of the Board of Gov-
ernors 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 con-
tain 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 pol-
icy will have on the exchange rate; and
‘‘(2) the current and anticipated impact of the
exchange rate and any anticipated change in the ex-
change 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 ef-
fect 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 para-
graph (1);
‘‘(B) all conditions of any swap agreement
or currency transaction referred to in para-
graph (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 COMPETI-
TIVENESS ACT OF 1988.
Section 3005 of the Omnibus Trade and Competitive-
ness 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 sub-
section (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 redes-
ignated) 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 affect-
ing 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, employ-
ment, production, inflation, wages, and
economic growth;
‘‘(ii) the current account and the fi-
nancial 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 ef-
fect with any foreign entity;
‘‘(B) any change since the preceding report
in any inventory of currencies under the Sec-
retary’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 follow-
ing new subsections:
‘‘(c) CHANGES IN POLICY.—
‘‘(1) IN GENERAL.—This section shall not be
construed as requiring the plans disclosed in any re-
port under subsection (a) to be carried out by the
Secretary after such report is submitted to the Con-
gress 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 Sec-
retary makes any determination described in para-
graph (1) with respect to any plans and objectives,
the Secretary shall include in the next report under
subsection (a) after such determination an expla-
nation for any revision or deviation from the plan or
objective.
‘‘(d) REPORTS
ON INTERVENTIONS.—If the Sec-
retary 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 sub-
section (b).
‘‘(f) APPEARANCE BEFORE CONGRESSIONAL COM-
MITTEES WITH THE CHAIRMAN OF THE FEDERAL RE-
SERVE 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 invi-
tation of the chairman of each such committee, to present
the report required under this section and answer ques-
tions 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 com-
mittees pursuant to section 2A(b) of the Federal Reserve
Act.’’.
Æ