Press Releases

LITTLE ROCK, AR  – Rep. French Hill (AR-02) and Rep. Jim Himes (CT-04) today announced the introduction of the bipartisan H.R. 3506, the 21^st Century Dollar Act. This legislation would require the Department of Treasury, in coordination with the Federal Reserve, to implement a strategy for the dollar to ensure it be maintained as the primary global reserve currency.

“The purpose of this bill is to ensure the U.S. dollar remains the world’s reserve currency, as it has been since World War II,” said Rep. Hill. “This is good for American companies and workers as well as U.S. global influence. I am proud to work with my good friend and colleague, Chairman Himes, on this effort — especially timely now as China seeks to spread its influence around the world through predatory lending practices like its Belt and Road Initiative. Congress and policy makers need to understand the risks posed to the dollar, especially as it relates to China’s renminbi, to ensure the safety and preeminence of the dollar.”

“I’m pleased to introduce this bill with Congressman French Hill, my former Ranking Member on the Subcommittee on National Security, International Development and Monetary Policy on the Financial Services Committee. The 21^st Century Currency Act is a smart, bipartisan bill to ensure the US dollar continues as the world’s foremost reserve currency. Maintaining the dollar’s status serves as an important geopolitical tool in our diplomatic toolbox,” said Rep. Himes.

Background:

A reserve currency is held by central banks around the world in large quantities and is used to conduct international trade and financial transactions. This legislation outlines that the dollar calls for:

• Deep, open, and transparent financial markets;
• Continuous improvements to domestic and international payment methods that facilitate dollar transactions;
• Sound macroeconomic governance and rules-based system of international trade; and
• Clear and realistic objectives in the deployment of financial restrictions arising from national security considerations.

The legislation requires that Treasury and the Federal Reserve create a policy that is reflective of these ideals and submit a report to Congress. The bill also requires reporting on any risks to the dollar posed by the internationalization of the renminbi – China’s official currency.