
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-115 Section 529]
[CITE: 22USC2362]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
          SUBCHAPTER III--GENERAL AND ADMINISTRATIVE PROVISIONS
 
                       Part I--General Provisions
 
Sec. 2362. Use of foreign currencies


(a) Currencies received in payment for nonmilitary assistance; foreign 
        obligations

    Except as otherwise provided in this chapter or other Acts, foreign 
currencies received either (1) as a result of the furnishing of 
nonmilitary assistance under the Mutual Security Act of 1954, as 
amended, or any Act repealed thereby, and unobligated on September 3, 
1961, or (2) on or after September 4, 1961, as a result of the 
furnishing of nonmilitary assistance under the Mutual Security Act of 
1954, as amended, or any Act repealed thereby, or (3) as a result of the 
furnishing of assistance under subchapter I of this chapter, which are 
in excess of amounts reserved under authority of section 2455(d) of this 
title or any other Act relating to educational and cultural exchanges, 
may be sold by the Secretary of the Treasury to agencies of the United 
States Government for payment of their obligations outside the United 
States, and the United States dollars received as reimbursement shall be 
deposited into miscellaneous receipts of the Treasury. Foreign 
currencies so received which are in excess of the amounts so reserved 
and of the requirements of the United States Government in payment of 
its obligations outside the United States, as such requirements may be 
determined from time to time by the President, shall be available for 
the authorized purposes of subchapter I of this chapter in such amounts 
as may be specified from time to time in appropriation Acts.

(b) United States operations abroad; excess foreign currencies

    Any Act of the Congress making appropriations to carry out programs 
under this chapter or any other Act for United States operations abroad 
is hereby authorized to provide for the utilization of United States-
owned excess foreign currencies to carry out any such operations 
authorized by law.
    As used in this subsection, the term ``excess foreign currencies'' 
means foreign currencies or credits owned by or owed to the United 
States which are, under applicable agreements with the foreign country 
concerned, available for the use of the United States Government and are 
determined by the President to be excess to the normal requirements of 
departments and agencies of the United States for such currencies or 
credits and are not prohibited from use under this subsection by an 
agreement entered into with the foreign country concerned.
    The President shall take all appropriate steps to assure that, to 
the maximum extent possible, United States-owned foreign currencies are 
utilized in lieu of dollars. Dollar funds made available pursuant to 
this chapter shall not be expended for goods and services when United 
States-owned foreign currencies are available for such purposes unless 
the administrative official approving the voucher certifies as to the 
reason for the use of dollars in each case.

(c) Voluntary family planning programs; limitation

    In addition to funds otherwise available, excess foreign currencies, 
as defined in subsection (b) of this section, may be made available to 
friendly foreign governments and to private, nonprofit United States 
organizations to carry out voluntary family planning programs in 
countries which request such assistance. No such program shall be 
assisted unless the President has received assurances that in the 
administration of such program the recipient will take reasonable 
precautions to insure that no person receives any family planning 
assistance or supplies unless he desires such services. The excess 
foreign currencies made available under this subsection shall not, in 
any one year, exceed 5 per centum of the aggregate of all excess foreign 
currencies. As used in this subsection, the term ``voluntary family 
planning program'' includes, but is not limited to, demographic studies, 
medical and psychological research, personnel training, the construction 
and staffing of clinics and rural health centers, specialized training 
of doctors and paramedical personnel, the manufacture of medical 
supplies, and the dissemination of family planning information, medical 
assistance, and supplies to individuals who desire such assistance.

(d) Reciprocal release of dollar value equivalents

    In furnishing assistance under this chapter to the government of any 
country in which the United States owns excess foreign currencies as 
defined in subsection (b) of this section, except those currencies 
generated under the Agricultural Trade Development and Assistance Act of 
1954, as amended [7 U.S.C. 1691 et seq.], the President shall endeavor 
to obtain from the recipient country an agreement for the release, on 
such terms and conditions as the President shall determine, of an amount 
of such currencies up to the equivalent of the dollar value of 
assistance furnished by the United States for programs as may be 
mutually agreed upon by the recipient country and the United States to 
carry out the purposes for which new funds authorized by this chapter 
would themselves be available.

(Pub. L. 87-195, pt. III, Sec. 612, Sept. 4, 1961, 75 Stat. 443; Pub. L. 
88-205, pt. III, Sec. 301(d), Dec. 16, 1963, 77 Stat. 385; Pub. L. 88-
633, pt. III, Sec. 301(c), Oct. 7, 1964, 78 Stat. 1012; Pub. L. 88-638, 
Sec. 2(1), Oct. 8, 1964, 78 Stat. 1037; Pub. L. 89-171, pt. III, 
Sec. 301(b), Sept. 6, 1965, 79 Stat. 659; Pub. L. 89-583, pt. III, 
Sec. 301(e), Sept. 19, 1966, 80 Stat. 805; Pub. L. 91-175, pt. III, 
Sec. 302, Dec. 30, 1969, 83 Stat. 820.)

                       References in Text

    This chapter, referred to in subsecs. (a), (b), and (d), was in the 
original ``this Act'', meaning Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 
424, as amended, known as the Foreign Assistance Act of 1961. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 2151 of this title and Tables.
    The Mutual Security Act of 1954, referred to in subsec. (a), is act 
Aug. 26, 1954, ch. 937, 68 Stat. 832, as amended by acts July 8, 1955, 
ch. 301, 69 Stat. 283; July 18, 1956, ch. 627, Secs. 2 to 11, 70 Stat. 
555; Aug. 14, 1957, Pub. L. 85-141, 71 Stat. 355; June 30, 1958, Pub. L. 
85-477, ch. 1, Secs. 101 to 103, ch. II, Secs. 201 to 205, ch. III, 
Sec. 301, ch. IV, Sec. 401, ch. V, Sec. 501, 72 Stat. 261; July 24, 
1959, Pub. L. 86-108, Sec. 2, ch. 1, Sec. 101, ch. II, Secs. 201 to 
205(a) to (i), (k) to (n), ch. III, Sec. 301, ch. IV, Sec. 401(a) to 
(k), (m), 73 Stat. 246; May 14, 1960, Pub. L. 86-472, ch. I to V, 74 
Stat. 134, which was principally classified to chapter 24 (Sec. 1750 et 
seq.) of this title and which was repealed by act July 18, 1956, ch. 
627, Sec. 8(m), 70 Stat. 559, Pub. L. 85-141, Secs. 2(e), 3, 4(b), 
11(d), Aug. 14, 1957, 71 Stat. 356, Pub. L. 86-108, ch. II, 
Secs. 205(j), ch. IV, 401(1), July 24, 1959, 73 Stat. 250, Pub. L. 86-
472, ch. II, Secs. 203(d), 204(k), May 14, 1960, 74 Stat. 138, Pub. L. 
87-195, pt. III, Sec. 642(a)(2), Sept. 4, 1961, 75 Stat. 460, Pub. L. 
94-329, title II, Sec. 212(b)(1), June 30, 1976, 90 Stat. 745, Pub. L. 
104-127, title II, Sec. 228, Apr. 4, 1996, 110 Stat. 963, except for 
sections 1754, 1783, 1796, 1853, 1928, and 1937 of this title. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 1754 of this title and Tables.
    The Agricultural Trade Development and Assistance Act of 1954, as 
amended, referred to in subsec. (d), is act July 10, 1954, ch. 469, 68 
Stat. 454, as amended, which is classified principally to chapter 41 
(Sec. 1691 et seq.) of Title 7, Agriculture. For complete classification 
of this Act to the Code, see Short Title note set out under section 1691 
of Title 7 and Tables.


References to Subchapter I Deemed To Include Certain Parts of Subchapter 
                                   II

    References to subchapter I of this chapter are deemed to include 
parts IV (Sec. 2346 et seq.), VI (Sec. 2348 et seq.), and VIII 
(Sec. 2349aa et seq.) of subchapter II of this chapter, and references 
to subchapter II are deemed to exclude such parts. See section 202(b) of 
Pub. L. 92-226, set out as a note under section 2346 of this title, and 
sections 2348c and 2349aa-5 of this title.


                               Amendments

    1969--Subsec. (d). Pub. L. 91-175 added subsec. (d).
    1966--Subsec. (c). Pub. L. 89-583 added subsec. (c).
    1965--Subsecs. (b), (c). Pub. L. 89-171 redesignated subsec. (c) as 
(b) and prohibited dollar funds made available pursuant to this chapter 
from being expended for goods and services when United States-owned 
foreign currencies are available for such purposes unless the 
administrative official approving the voucher certifies as to the reason 
for the use of dollars in each case.
    1964--Subsec. (b). Pub. L. 88-638 redesignated subsec. (b), as added 
by Pub. L. 88-205, as subsec. (t) of section 1704 of Title 7, 
Agriculture.
    Subsec. (c). Pub. L. 88-633 added subsec. (c).
    1963--Pub. L. 88-205 designated existing provisions as subsec. (a) 
and added subsec. (b).

                         Delegation of Functions

    For delegation of functions of President under this section, see Ex. 
Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a 
note under section 2381 of this title.


        Separate Accounts for Local Currencies and Cash Transfers

    Pub. L. 106-429, Sec. 101(a) [title V, Sec. 532], Nov. 6, 2000, 114 
Stat. 1900, 1900A-32, provided that:
    ``(a) Separate Accounts for Local Currencies.--(1) If assistance is 
furnished to the government of a foreign country under chapters 1 and 10 
of part I [22 U.S.C. 2151 et seq., 2293 et seq.] or chapter 4 of part II 
[22 U.S.C. 2346 et seq.] of the Foreign Assistance Act of 1961 under 
agreements which result in the generation of local currencies of that 
country, the Administrator of the Agency for International Development 
shall--
        ``(A) require that local currencies be deposited in a separate 
    account established by that government;
        ``(B) enter into an agreement with that government which sets 
    forth--
            ``(i) the amount of the local currencies to be generated; 
        and
            ``(ii) the terms and conditions under which the currencies 
        so deposited may be utilized, consistent with this section; and
        ``(C) establish by agreement with that government the 
    responsibilities of the Agency for International Development and 
    that government to monitor and account for deposits into and 
    disbursements from the separate account.
    ``(2) Uses of Local Currencies.--As may be agreed upon with the 
foreign government, local currencies deposited in a separate account 
pursuant to subsection (a), or an equivalent amount of local currencies, 
shall be used only--
        ``(A) to carry out chapter 1 or 10 of part I or chapter 4 of 
    part II (as the case may be), for such purposes as--
            ``(i) project and sector assistance activities; or
            ``(ii) debt and deficit financing; or
        ``(B) for the administrative requirements of the United States 
    Government.
    ``(3) Programming Accountability.--The Agency for International 
Development shall take all necessary steps to ensure that the equivalent 
of the local currencies disbursed pursuant to subsection (a)(2)(A) from 
the separate account established pursuant to subsection (a)(1) are used 
for the purposes agreed upon pursuant to subsection (a)(2).
    ``(4) Termination of Assistance Programs.--Upon termination of 
assistance to a country under chapter 1 or 10 of part I or chapter 4 of 
part II (as the case may be), any unencumbered balances of funds which 
remain in a separate account established pursuant to subsection (a) 
shall be disposed of for such purposes as may be agreed to by the 
government of that country and the United States Government.
    ``(5) Reporting Requirement.--The Administrator of the Agency for 
International Development shall report on an annual basis as part of the 
justification documents submitted to the Committees on Appropriations on 
the use of local currencies for the administrative requirements of the 
United States Government as authorized in subsection (a)(2)(B), and such 
report shall include the amount of local currency (and United States 
dollar equivalent) used and/or to be used for such purpose in each 
applicable country.
    ``(b) Separate Accounts for Cash Transfers.--(1) If assistance is 
made available to the government of a foreign country, under chapter 1 
or 10 of part I [22 U.S.C. 2151 et seq., 2293 et seq.] or chapter 4 of 
part II [22 U.S.C. 2346 et seq.] of the Foreign Assistance Act of 1961, 
as cash transfer assistance or as nonproject sector assistance, that 
country shall be required to maintain such funds in a separate account 
and not commingle them with any other funds.
    ``(2) Applicability of Other Provisions of Law.--Such funds may be 
obligated and expended notwithstanding provisions of law which are 
inconsistent with the nature of this assistance including provisions 
which are referenced in the Joint Explanatory Statement of the Committee 
of Conference accompanying House Joint Resolution 648 (House Report No. 
98-1159).
    ``(3) Notification.--At least 15 days prior to obligating any such 
cash transfer or nonproject sector assistance, the President shall 
submit a notification through the regular notification procedures of the 
Committees on Appropriations, which shall include a detailed description 
of how the funds proposed to be made available will be used, with a 
discussion of the United States interests that will be served by the 
assistance (including, as appropriate, a description of the economic 
policy reforms that will be promoted by such assistance).
    ``(4) Exemption.--Nonproject sector assistance funds may be exempt 
from the requirements of subsection (b)(1) only through the notification 
procedures of the Committees on Appropriations.''
    Similar provisions were contained in the following prior 
appropriation acts:
    Pub. L. 106-113, div. B, Sec. 1000(a)(2) [title V, Sec. 532], Nov. 
29, 1999, 113 Stat. 1535, 1501A-91.
    Pub. L. 105-277, div. A, Sec. 101(d) [title V, Sec. 533], Oct. 21, 
1998, 112 Stat. 2681-150, 2681-179.
    Pub. L. 105-118, title V, Sec. 532, Nov. 26, 1997, 111 Stat. 2414.
    Pub. L. 104-208, div. A, title I, Sec. 101(c) [title V, Sec. 531], 
Sept. 30, 1996, 110 Stat. 3009-121, 3009-150.
    Pub. L. 104-107, title V, Sec. 532, Feb. 12, 1996, 108 Stat. 732.
    Pub. L. 103-306, title V, Sec. 536, Aug. 23, 1994, 108 Stat. 1637.
    Pub. L. 103-87, title V, Sec. 537, Sept. 30, 1993, 107 Stat. 955.
    Pub. L. 102-391, title V, Sec. 571, Oct. 6, 1992, 106 Stat. 1681.
    Pub. L. 101-513, title V, Sec. 575, Nov. 5, 1990, 104 Stat. 2042.
    Pub. L. 101-167, title II, title V, Sec. 592, Nov. 21, 1989, 103 
Stat. 1207, 1253.
    Pub. L. 100-461, title II, Oct. 1, 1988, 102 Stat. 2268-12.
    Pub. L. 100-202, Sec. 101(e) [title II], Dec. 22, 1987, 101 Stat. 
1329-131, 1329-143.
    Pub. L. 99-500, Sec. 101(f) [title II], Oct. 18, 1986, 100 Stat. 
1783-213, 1783-221, and Pub. L. 99-591, Sec. 101(f) [title II], Oct. 30, 
1986, 100 Stat. 3341-214, 3341-221.

                  Section Referred to in Other Sections

    This section is referred to in section 1754 of this title.
