Sec. 4. Identification of fundamentally misaligned currencies
221 words·~1 min read·
/bill/113/s/1114/is/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary shall analyze on a semiannual basis the prevailing real effective exchange rates of foreign currencies. With respect to the currencies of countries that have significant bilateral trade flows with the United States, and currencies that are otherwise significant to the operation, stability, or orderly development of regional or global capital markets, the Secretary shall determine whether any such currency is in fundamental misalignment and shall designate such currency as a fundamentally misaligned currency. The Secretary shall designate a currency identified under paragraph
(2)for priority action if the country that issues such currency is— engaging in protracted large-scale intervention in the currency exchange market, particularly if accompanied by partial or full sterilization; engaging in excessive and prolonged official or quasi-official accumulation of foreign exchange reserves and other foreign assets, for balance of payments purposes; introducing or substantially modifying for balance of payments purposes a restriction on, or incentive for, the inflow or outflow of capital, that is inconsistent with the goal of achieving full currency convertibility; or pursuing any other policy or action that, in the view of the Secretary, warrants designation for priority action. The Secretary shall include a list of any foreign currency designated under paragraph
(2)or
(3)of subsection
(a)and the data and reasoning underlying such designations in each report required by section 3.