SUBCHAPTER I—CREDIT AND MONETARY EXPANSION
§5301. Buying obligations of the United States Government
(a) The President may direct the Secretary of the Treasury to make an agreement with the Federal reserve banks and the Board of Governors of the Federal Reserve System when the President decides that the foreign commerce of the United States is affected adversely because—
(1) the value of coins and currency of a foreign country compared to the present standard value of gold is depreciating;
(2) action is necessary to regulate and maintain the parity of United States coins and currency;
(3) an economic emergency requires an expansion of credit; or
(4) an expansion of credit is necessary so that the United States Government and the governments of other countries can stabilize the value of coins and currencies of a country.
(b) Under an agreement under subsection (a) of this section, the Board shall permit the banks (and the Board is authorized to permit the banks notwithstanding another law) to agree that the banks will—
(1) conduct through each entire specified period open market operations in obligations of the United States Government or corporations in which the Government is the majority stockholder; and
(2) buy directly and hold an additional $3,000,000,000 of obligations of the Government for each agreed period, unless the Secretary consents to the sale of the obligations before the end of the period.
(c) With the approval of the Secretary, the Board may require Federal reserve banks to take action the Secretary and Board consider necessary to prevent unreasonable credit expansion.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 5301(a), (b) | 31:821(less (a)(last sentence)). | May 12, 1933, ch. 25, §43(less (b)(1)(last sentence)), |
| 5301(c) | 31:821(a)(last sentence). |
In subsection (a), before clause (1), the text of 31:821(b)(matter before (1)) is omitted as obsolete because clause (1) is omitted as executed, and clause (2) is omitted as expired. The text of 31:821(b)(matter after (2)) is omitted as obsolete because silver is no longer coined. The words "in his discretion" and "several" are omitted as surplus. The words "Board of Governors of the Federal Reserve System" are substituted for "Federal Reserve Board" because of 12:241. The words "upon investigation" are omitted as surplus. In clause (1), the word "foreign" is substituted for "of any other government or governments" to eliminate unnecessary words. The words "coins and" are added for consistency. In clause (2), the words "United States coins and currency" are substituted for "currency issues of the United States" for consistency. In clause (4), the words "so that the United States Government and the governments of other countries can stabilize" are substituted for "to secure by international agreement a stabilization" for clarity. The words "at proper levels" are omitted as surplus.
In subsection (b), before clause (1), the words "(and the Board is authorized to permit the banks notwithstanding another law)" are substituted for "notwithstanding any provisions of law or rules and regulations to the contrary" for clarity. In clause (1), the words "pursuant to existing law" are omitted as surplus. The words "through each entire" are substituted for "throughout" for clarity. In clause (2), the words "in portfolio", "or periods of time Treasury bills or other" and "in an aggregate sum of" are omitted as surplus.
Statutory Notes and Related Subsidiaries
Short Title of 2021 Amendment
Short Title of 2006 Amendment
Short Title of 2004 Amendment
Short Title of 2001 Amendment
Short Title of 1998 Amendment
Short Title of 1994 Amendment
§5302. Stabilizing exchange rates and arrangements
(a)(1) The Department of the Treasury has a stabilization fund. The fund is available to carry out this section, section 18 of the Bretton Woods Agreement Act (
(2) Subject to approval by the President, the fund is under the exclusive control of the Secretary, and may not be used in a way that direct control and custody pass from the President and the Secretary. Decisions of the Secretary are final and may not be reviewed by another officer or employee of the Government.
(b) Consistent with the obligations of the Government in the International Monetary Fund on orderly exchange arrangements and a stable system of exchange rates, the Secretary or an agency designated by the Secretary, with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities the Secretary considers necessary. However, a loan or credit to a foreign entity or government of a foreign country may be made for more than 6 months in any 12-month period only if the President gives Congress a written statement that unique or emergency circumstances require the loan or credit be for more than 6 months.
(c)(1) By the 30th day after the end of each month, the Secretary shall give the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a detailed financial statement on the stabilization fund showing all agreements made or renewed, all transactions occurring during the month, and all projected liabilities.
(2) The Secretary shall report each year to the President and Congress on the operation of the fund.
(d) A repayment of any part of the first subscription payment of the Government to the International Monetary Fund, previously paid from the stabilization fund, shall be deposited in the Treasury as a miscellaneous receipt.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 5302(a) | 31:822a(b)(1). | Jan. 30, 1934, ch. 6, §10(a), (b)(1), (c), |
| 5302(b) | 31:822a(a)(1st sentence). | |
| 5302(c)(1) | 31:822a(b)(2). | Jan. 30, 1934, ch. 6, |
| 5302(c)(2) | 31:822a(a)(last sentence). | |
| 5302(d) | 31:822a(c). |
In subsection (a)(1), the words "The Department of the Treasury has a stabilization fund" are substituted for "there is appropriated, out of the receipts which are directed to be covered into the Treasury under
In subsection (b), the words "directly . . . through" and "for the account of the fund established in this section" are omitted as surplus. The words "government of a foreign country" are substituted for "foreign government" for consistency in the revised title and with other titles of the United States Code. The words "by or through such fund" are omitted as surplus.
In subsection (c)(1), the word "calendar" is omitted as surplus. The words "beginning after the effective date of this paragraph" are omitted as executed. The words "to occur" are omitted as surplus.
In subsection (d), the words "any part of the first subscription payment of the Government to the International Monetary Fund, previously paid from the stabilization fund" are substituted for 31:822a(c)(words before semicolon) and "thereof" for clarity because the payment has been made.
Editorial Notes
References in Text
The Coronavirus Economic Stabilization Act of 2020, referred to in subsec. (a)(1), is subtitle A (§§4001–4029) of title IV of div. A of
Amendments
2020—Subsec. (a)(1).
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of
Mexican Debt Disclosure
"SEC. 401. SHORT TITLE.
"This title may be cited as the 'Mexican Debt Disclosure Act of 1995'.
"SEC. 402. FINDINGS.
"The Congress finds that—
"(1) Mexico is an important neighbor and trading partner of the United States;
"(2) on January 31, 1995, the President approved a program of assistance to Mexico, in the form of swap facilities and securities guarantees in the amount of $20,000,000,000, using the exchange stabilization fund;
"(3) the program of assistance involves the participation of the Board of Governors of the Federal Reserve System, the International Monetary Fund, the Bank for International Settlements, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Bank of Canada, and several Latin American countries;
"(4) the involvement of the exchange stabilization fund and the Board of Governors of the Federal Reserve System means that United States taxpayer funds will be used in the assistance effort to Mexico;
"(5) assistance provided by the International Monetary Fund, the International Bank for Reconstruction and Development, and the Inter-American Development Bank may require additional United States contributions of taxpayer funds to those entities;
"(6) the immediate use of taxpayer funds and the potential requirement for additional future United States contributions of taxpayer funds necessitates congressional oversight of the disbursement of funds; and
"(7) the efficacy of the assistance to Mexico is contingent on the pursuit of sound economic policy by the Government of Mexico.
"SEC. 403. PRESIDENTIAL REPORTS.
"(a)
"(b)
"(1) Changes in wage, price, and credit controls in the Mexican economy.
"(2) Changes in taxation policy of the Government of Mexico.
"(3) Specific actions taken by the Government of Mexico to further privatize the economy of Mexico.
"(4) Actions taken by the Government of Mexico in the development of regulatory policy that significantly affected the performance of the Mexican economy.
"(5) Consultations concerning the program approved by the President, including advice on economic, monetary, and fiscal policy, held between the Government of Mexico and the Secretary of the Treasury (including any designee of the Secretary) and the conclusions resulting from any periodic reviews undertaken by the International Monetary Fund pursuant to the Fund's loan agreements with Mexico.
"(6) All outstanding loans, credits, and guarantees provided to the Government of Mexico, by the United States Government, including the Board of Governors of the Federal Reserve System, set forth by category of financing.
"(7) The progress the Government of Mexico has made in stabilizing the peso and establishing an independent central bank or currency board.
"(c)
"SEC. 404. REPORTS BY THE SECRETARY OF THE TREASURY.
"(a)
"(b)
"(1) The current condition of the Mexican economy.
"(2) The reserve positions of the central bank of Mexico and data relating to the functioning of Mexican monetary policy.
"(3) The amount of any funds disbursed from the exchange stabilization fund pursuant to the program of assistance to the Government of Mexico approved by the President on January 31, 1995.
"(4) The amount of any funds disbursed by the Board of Governors of the Federal Reserve System pursuant to the program of assistance referred to in paragraph (3).
"(5) Financial transactions, both inside and outside of Mexico, made during the reporting period involving funds disbursed to Mexico from the exchange stabilization fund or proceeds of Mexican Government securities guaranteed by the exchange stabilization fund.
"(6) All outstanding guarantees issued to, and short-term and medium-term currency swaps with, the Government of Mexico by the Secretary of the Treasury, set forth by category of financing.
"(7) All outstanding currency swaps with the central bank of Mexico by the Board of Governors of the Federal Reserve System and the rationale for, and any expected costs of, such transactions.
"(8) The amount of payments made by customers of Mexican petroleum companies that have been deposited in the account at the Federal Reserve Bank of New York established to ensure repayment of any payment by the United States Government, including the Board of Governors of the Federal Reserve System, in connection with any guarantee issued to, or any swap with, the Government of Mexico.
"(9) Any setoff by the Federal Reserve Bank of New York against funds in the account described in paragraph (8).
"(10) To the extent such information is available, once there has been a setoff by the Federal Reserve Bank of New York, any interruption in deliveries of petroleum products to existing customers whose payments were setoff.
"(11) The interest rates and fees charged to compensate the Secretary of the Treasury for the risk of providing financing.
"SEC. 405. TERMINATION OF REPORTING REQUIREMENTS.
"The requirements of sections 403 and 404 shall terminate on the date that the Government of Mexico has paid all obligations with respect to swap facilities and guarantees of securities made available under the program approved by the President on January 31, 1995.
"SEC. 406. PRESIDENTIAL CERTIFICATION REGARDING SWAP OF CURRENCIES TO MEXICO THROUGH EXCHANGE STABILIZATION FUND OR FEDERAL RESERVE.
"(a)
"(1) there is no projected cost (as defined in the Credit Reform Act of 1990 [probably means the Federal Credit Reform Act of 1990,
"(2) all loans, credits, guarantees, and currency swaps are adequately backed to ensure that all United States funds are repaid;
"(3) the Government of Mexico is making progress in ensuring an independent central bank or an independent currency control mechanism;
"(4) Mexico has in effect a significant economic reform effort; and
"(5) the President has provided the documents described in paragraphs (1) through (28) of House Resolution 80, adopted March 1, 1995.
"(b)
"SEC. 407. DEFINITIONS.
"For purposes of this title, the following definitions shall apply:
"(1)
"(2)
Executive Documents
Certification Regarding Use of Exchange Stabilization Fund and Federal Reserve in Relation to Economic Crisis in Mexico
Memorandum of President of the United States, June 29, 1995, 60 F.R. 35113, provided:
Memorandum for the Secretary of the Treasury
On January 31, 1995, I approved a program of assistance to Mexico, in the form of swap facilities and securities guarantees in an amount not to exceed $20 billion, using the Exchange Stabilization Fund (the "ESF program").
By virtue of the authority vested in me by the Constitution and the laws of the United States, including
(1) There is no projected cost (as defined in the Federal Credit Reform Act of 1990 [
(2) All loans, credits, guarantees, and currency swaps to Mexico from the Exchange Stabilization Fund or the Federal Reserve System are adequately backed to ensure that all United States funds are repaid.
(3) The Government of Mexico is making progress in ensuring an independent central bank.
(4) Mexico has in effect a significant economic reform effort.
(5) The Executive Branch has provided the documents requested by House Resolution 80 adopted March 1, 1995, and described in paragraphs (1) through (28) of that Resolution. All documents identified as responsive to the Resolution have been provided to the entire House of Representatives. Pursuant to the terms of the Resolution, the Executive Branch has not provided those documents as to which the Executive Branch has informed the House that it would be inconsistent with the public interest to provide the documents to the House. Pursuant to arrangements for safekeeping of classified materials in House facilities, classified documents have been provided to the House by making them available either at designated, secure House facilities or at Executive Branch facilities. Each agency, including the Federal Reserve Board, has advised the House of the procedures employed by that agency to provide the documents requested by House Resolution 80.
I have been informed that the Board of Governors of the Federal Reserve System has provided the documents requested by House Resolution 80 and described in paragraphs (1) through (28) of that Resolution.
I hereby delegate to you the reporting requirement contained in section 406 of
I also hereby delegate to you the reporting requirement contained in section 403 of
You are authorized and directed to publish this memorandum in the Federal Register.
William J. Clinton.
Prior certifications were contained in the following:
Memorandum of President of the United States, May 17, 1995, 60 F.R. 27395.
Memorandum of President of the United States, Apr. 14, 1995, 60 F.R. 19485.
§5303. Reserved coins and currencies of foreign countries
An agency may use coins and currencies of a foreign country the United States Government holds that are or may be reserved for a specific program or activity of an agency. The agency shall reimburse the Treasury from appropriations and shall replace the coins and currencies when they are needed for the program or activity for which they were reserved originally.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 5303 | 31:938. | Oct. 15, 1966, |
The word "Federal" is omitted as unnecessary because of the definition of "agency" in section 101 of the revised title. The words "coins and" and "Government" are added for consistency. The words "or set aside" and "of the Government" are omitted as surplus. The words "The agency shall reimburse . . . shall replace" are substituted for "except (1) that reimbursement shall be made . . . (2) . . . shall be replaced" for clarity. The words "applicable . . . of the agency concerned" are omitted as surplus. The words "program or activity" are substituted for "purpose" for clarity and consistency.
§5304. Regulations
With the approval of the President, the Secretary of the Treasury may prescribe regulations—
(1) to carry out
(2) the Secretary considers necessary to carry out
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 5304 | 31:822. | May 12, 1933, ch. 25, §44, |
| 31:822b. | Jan. 30, 1934, ch. 6, §11, |
Before clause (1), the words "prescribe regulations" are substituted for "make and promulgate rules and regulations" in 31:822 and "issue . . . such rules and regulations" in 31:822b for consistency. In clause (1), the words "to carry out" are substituted for "covering any action taken or to be taken by the President under" in 31:822 to eliminate unnecessary words. In clause (2), the words "or proper" in 31:822b and "the purposes of" are omitted as surplus. Reference to 31:821 is omitted as obsolete because silver is no longer coined. Reference to 31:824 is omitted as obsolete because 31:824 is executed and is not part of the revised title.