Amends the Exchange Rates and International Economic Policy Coordination Act of 1988 with respect to the conditions for required actions by the Secretary of the Treasury to initate expedited negotiations for exchange rate adjustments by a foreign country the Secretary considers to be manipulating the rate of exchange between its currency and the U.S. dollar in order to prevent effective balance of payments adjustments or gain unfair competitive advantage in international trade.
Repeals the requirement that such a country have a material global account surplus as well as a significant bilateral trade surplus with the United States. (Thus requires only that it have a significant bilateral trade surplus with the United States; that is, the Secretary is required to take action to initiate exchange rate adjustment negotiations with any country that has a significant bilateral trade surplus with the United States, regardless of its material global account status.)
Requires the Secretary's annual report to specified congressional committees to contain a detailed explanation of the test used to determine if a country is manipulating the rate of exchange between its currency and the dollar for such purposes.