[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 692 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 692
To require the United States Executive Director at the International
Monetary Fund to advocate for increased transparency with respect to
exchange rate policies of the People's Republic of China, and for other
purposes.
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IN THE HOUSE OF REPRESENTATIVES
January 23, 2025
Mr. Meuser (for himself, Mr. Loudermilk, Ms. Lee of Nevada, Ms. De La
Cruz, 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 International
Monetary Fund to advocate for increased transparency 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``China Exchange Rate Transparency Act
of 2023''.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) Under Article IV of the Articles of Agreement of the
International Monetary Fund (IMF), the People's Republic of
China has committed to orderly exchange rate arrangements, the
avoidance of exchange rate manipulation, and cooperation with
the IMF to ensure ``firm surveillance'' of the exchange rate
policies of the People's Republic of China. Pursuant to Article
VIII of the Articles of Agreement of the IMF, the IMF may
require the People's Republic of China to furnish data on gold
and foreign exchange holdings, including assets held by non-
official agencies of the People's Republic of China.
(2) In its November 2022 report, entitled ``Macroeconomic
and Foreign Exchange Policies of Major Trading Partners of the
United States'', the Department of the Treasury concluded,
``China provides very limited transparency regarding key
features of its exchange rate mechanism, including the policy
objectives of its exchange rate management regime and its
activities in the offshore RMB market.''. The Department
continued: ``China's lack of transparency and use of a wide
array of tools complicate Treasury's ability to assess the
degree to which official actions are designed to impact the
exchange rate.''.
(3) In that report, the Department further noted that
``China's failure to publish foreign exchange intervention and
broader lack of transparency around key features of its
exchange rate mechanism make it an outlier among major
economies and warrants Treasury's close monitoring.''.
SEC. 3. ADVOCACY FOR INCREASED EXCHANGE RATE TRANSPARENCY FROM CHINA.
The Secretary of the Treasury shall instruct the United States
Executive Director at the International Monetary Fund (in this Act
referred to as the ``IMF'') to use the voice and vote of the United
States to advocate for--
(1) increased transparency from the People's Republic of
China, and enhanced multilateral and bilateral surveillance by
the IMF, with respect to the exchange rate arrangements of the
People's Republic of China, including any indirect foreign
exchange market intervention through Chinese financial
institutions or state-owned enterprises;
(2) in connection with consultations with the People's
Republic of China under Article IV of the Articles of Agreement
of the IMF, the inclusion of any significant divergences by the
People's Republic of China from the exchange rate policies of
other issuers of currencies used in determining the value of
Special Drawing Rights; and
(3) during governance reviews of the IMF, stronger
consideration by IMF members and management of the performance
of China as a responsible stakeholder in the international
monetary system when evaluating quota and voting shares at the
IMF.
SEC. 4. SUNSET.
This Act shall have no force or effect on or after the date that is
30 days after the earlier of--
(1) the date that the United States Governor of the IMF
reports to the Congress that the People's Republic of China--
(A) is in substantial compliance with obligations
of the People's Republic of China under the Articles of
Agreement of the IMF regarding orderly exchange rate
arrangements; and
(B) has undertaken exchange rate policies and
practices consistent with those of other issuers of
currencies used in determining the value of Special
Drawing Rights; and
(2) the date that is 7 years after the date of the
enactment of this Act.
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