[Congressional Record Volume 160, Number 74 (Thursday, May 15, 2014)]
[Senate]
[Pages S3078-S3079]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SENATE RESOLUTION 448--EXPRESSING THE SENSE OF THE SENATE ON THE POLICY 
   OF THE UNITED STATES REGARDING STABILIZING THE CURRENCY OF UKRAINE

  Mr. RUBIO (for himself and Mr. Cruz) submitted the following 
resolution; which was referred to the Committee on Foreign Relations:

                              S. Res. 448

       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;

[[Page S3079]]

       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.

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