I
119THCONGRESS
1
STSESSION H. R. 692
To require the United States Executive Director at the International Mone-
tary Fund to advocate for increased transparency with respect to ex-
change rate policies of the People’s Republic of China, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY23, 2025
Mr. M
EUSER(for himself, Mr. LOUDERMILK, Ms. LEEof Nevada, Ms. DELA
C
RUZ, Mr. MOOLENAAR, and Mr. MESSMER) introduced the following bill;
which was referred to the Committee on Financial Services
A BILL
To require the United States Executive Director at the Inter-
national Monetary Fund to advocate for increased trans-
parency with respect to exchange rate policies of the
People’s Republic of China, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘China Exchange Rate 4
Transparency Act of 2023’’. 5
SEC. 2. FINDINGS. 6
The Congress finds as follows: 7
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(1) Under Article IV of the Articles of Agree-1
ment of the International Monetary Fund (IMF), 2
the People’s Republic of China has committed to or-3
derly exchange rate arrangements, the avoidance of 4
exchange rate manipulation, and cooperation with 5
the IMF to ensure ‘‘firm surveillance’’ of the ex-6
change rate policies of the People’s Republic of 7
China. Pursuant to Article VIII of the Articles of 8
Agreement of the IMF, the IMF may require the 9
People’s Republic of China to furnish data on gold 10
and foreign exchange holdings, including assets held 11
by non-official agencies of the People’s Republic of 12
China. 13
(2) In its November 2022 report, entitled 14
‘‘Macroeconomic and Foreign Exchange Policies of 15
Major Trading Partners of the United States’’, the 16
Department of the Treasury concluded, ‘‘China pro-17
vides very limited transparency regarding key fea-18
tures of its exchange rate mechanism, including the 19
policy objectives of its exchange rate management 20
regime and its activities in the offshore RMB mar-21
ket.’’. The Department continued: ‘‘China’s lack of 22
transparency and use of a wide array of tools com-23
plicate Treasury’s ability to assess the degree to 24
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which official actions are designed to impact the ex-1
change rate.’’. 2
(3) In that report, the Department further 3
noted that ‘‘China’s failure to publish foreign ex-4
change intervention and broader lack of trans-5
parency around key features of its exchange rate 6
mechanism make it an outlier among major econo-7
mies and warrants Treasury’s close monitoring.’’. 8
SEC. 3. ADVOCACY FOR INCREASED EXCHANGE RATE 9
TRANSPARENCY FROM CHINA. 10
The Secretary of the Treasury shall instruct the 11
United States Executive Director at the International 12
Monetary Fund (in this Act referred to as the ‘‘IMF’’) 13
to use the voice and vote of the United States to advocate 14
for— 15
(1) increased transparency from the People’s 16
Republic of China, and enhanced multilateral and bi-17
lateral surveillance by the IMF, with respect to the 18
exchange rate arrangements of the People’s Republic 19
of China, including any indirect foreign exchange 20
market intervention through Chinese financial insti-21
tutions or state-owned enterprises; 22
(2) in connection with consultations with the 23
People’s Republic of China under Article IV of the 24
Articles of Agreement of the IMF, the inclusion of 25
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any significant divergences by the People’s Republic 1
of China from the exchange rate policies of other 2
issuers of currencies used in determining the value 3
of Special Drawing Rights; and 4
(3) during governance reviews of the IMF, 5
stronger consideration by IMF members and man-6
agement of the performance of China as a respon-7
sible stakeholder in the international monetary sys-8
tem when evaluating quota and voting shares at the 9
IMF. 10
SEC. 4. SUNSET. 11
This Act shall have no force or effect on or after the 12
date that is 30 days after the earlier of— 13
(1) the date that the United States Governor of 14
the IMF reports to the Congress that the People’s 15
Republic of China— 16
(A) is in substantial compliance with obli-17
gations of the People’s Republic of China under 18
the Articles of Agreement of the IMF regarding 19
orderly exchange rate arrangements; and 20
(B) has undertaken exchange rate policies 21
and practices consistent with those of other 22
issuers of currencies used in determining the 23
value of Special Drawing Rights; and 24
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(2) the date that is 7 years after the date of the 1
enactment of this Act. 2
Æ
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