Exchange Rate Adjustment Act of 1987

Summary

Exchange Rate Adjustment Act of 1987 - Requires the Secretary of the Treasury and the Chairman of the Federal Reserve Board to establish a Strategic Foreign Currency Reserve consisting of the currencies of the major U.S. trading partners. Requires the Secretary and the Chairman to exchange not less than $30,000,000,000 for the currencies of such countries within three years from the date of enactment of this Act. Imposes certain conditions on the purchase of such currencies. Provides that the Secretary and the Chairman: (1) shall use foreign currencies in the Strategic Foreign Currency Reserve to purchase dollars in order to prevent sudden drops in the price of the dollar; (2) shall coordinate such purchases whenever possible with the central banks of the Group of Ten; and (3) may take action to offset any effect of such purchases on the domestic money supply. Directs the President to enter into expedited negotiations with countries which tie their currencies to the U.S. dollar to ensure that those countries regularly adjust the exchange rate to reflect underlying economic fundamentals. Requires the President to report to the Congress on such negotiations within 90 days of enactment of this Act. Requires the Secretary and the Chairman to: (1) develop an index of exchange rate movements for the the U.S. dollar which reflects changes in the dollar's value and which can be reported on a daily basis; and (2) report to the Congress on such index within 90 days of enactment of this Act.

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1 official file

• Introduced in Senate

  summary · EN · 6 January 1987

  Open at official source

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