[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2146 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 2146

 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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 24, 2025

    Mr. McCormick (for himself and Ms. Cortez Masto) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Foreign Relations

_______________________________________________________________________

                                 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 2025''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Under Article IV of the Articles of Agreement of the 
        International Monetary Fund, the People's Republic of China has 
        committed to orderly exchange rate arrangements, the avoidance 
        of exchange rate manipulation, and cooperation with the Fund 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 Fund, the Fund 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 [renminbi] 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, ``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 THE 
              PEOPLE'S REPUBLIC OF CHINA.

    (a) In General.--The Secretary of the Treasury shall instruct the 
United States Executive Director at the International Monetary Fund 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 Fund, 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 Fund, 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 Fund, stronger 
        consideration by members and management of the Fund of the 
        performance of the People's Republic of China as a responsible 
        stakeholder in the international monetary system when 
        evaluating quota and voting shares at the Fund.
    (b) Sunset.--The requirement under subsection (a) shall terminate 
on the date that is 30 days after the earlier of--
            (1) the date on which the United States Governor of the 
        International Monetary Fund reports to 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 Fund 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; or
            (2) the date that is 7 years after the date of the 
        enactment of this Act.
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