II 

118TH CONGRESS 

2D SESSION S. 4418 

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 

MAY 23, 2024 

Mr. RUBIO (for himself and Ms. BALDWIN) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘China Exchange Rate 

5 Transparency Act of 2024’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 


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1 (1) Under Article IV of the Articles of Agree2 ment of the International Monetary Fund (in this 

3 Act referred to as the ‘‘IMF’’), the People’s Repub4 lic of China has committed to orderly exchange rate 

5 arrangements, the avoidance of exchange rate ma6 nipulation, and cooperation with the IMF to ensure 

7 ‘‘firm surveillance’’ of the exchange rate policies of 

8 the People’s Republic of China. Pursuant to Article 

9 VIII of the Articles of Agreement of the IMF, the 

10 IMF may require the People’s Republic of China to 

11 furnish data on gold and foreign exchange holdings, 

12 including assets held by non-official agencies of the 

13 People’s Republic of China. 

14 (2) In its November 2022 report, entitled 

15 ‘‘Macroeconomic and Foreign Exchange Policies of 

16 Major Trading Partners of the United States’’, the 

17 Department of the Treasury concluded, ‘‘China pro18 vides very limited transparency regarding key fea19 tures of its exchange rate mechanism, including the 

20 policy objectives of its exchange rate management 

21 regime and its activities in the offshore RMB mar22 ket.’’. The Department continued: ‘‘China’s lack of 

23 transparency and use of a wide array of tools com24 plicate Treasury’s ability to assess the degree to 


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1 which official actions are designed to impact the ex2 change rate.’’. 

3 (3) In that report, the Department further 

4 noted that ‘‘China’s failure to publish foreign ex5 change intervention and broader lack of trans6 parency around key features of its exchange rate 

7 mechanism make it an outlier among major econo8 mies and warrants Treasury’s close monitoring.’’. 

9 SEC. 3. ADVOCACY FOR INCREASED EXCHANGE RATE 

10 TRANSPARENCY FROM CHINA. 

11 The Secretary of the Treasury shall instruct the 

12 United States Executive Director at the IMF to use the 

13 voice and vote of the United States to advocate for— 

14 (1) increased transparency from the People’s 

15 Republic of China and enhanced multilateral and bi16 lateral surveillance by the IMF with respect to the 

17 exchange rate arrangements of the People’s Republic 

18 of China, including regarding the validity of balance 

19 of payments data of the People’s Republic of China 

20 or any indirect foreign exchange market intervention 

21 through Chinese financial institutions or state-owned 

22 enterprises; 

23 (2) in connection with consultations with the 

24 People’s Republic of China under Article IV of the 

25 Articles of Agreement of the IMF, the inclusion of 


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1 any significant divergences by the People’s Republic 

2 of China from the exchange rate policies of other 

3 issuers of currencies used in determining the value 

4 of Special Drawing Rights; and 

5 (3) during governance reviews of the IMF, 

6 stronger consideration by IMF members and man7 agement of the performance of the People’s Republic 

8 of China as a responsible stakeholder in the inter9 national monetary system when evaluating quota 

10 and voting shares at the IMF. 

11 SEC. 4. DETERMINATION REGARDING CURRENCY MANIPU12 LATION. 

13 Not later than 90 days after the date of the enact14 ment of this Act, the Secretary of the Treasury shall de15 termine whether or not the People’s Republic of China 

16 meets the criteria to be designated a currency manipulator 

17 under section 3004(b) of the Exchange Rates and Inter18 national Economic Policy Coordination Act of 1988 (22 

19 U.S.C. 5304(b)). 

20 SEC. 5. SUNSET. 

21 This Act shall have no force or effect on and after 

22 the date that is 30 days after the earlier of— 

23 (1) the date that the United States Governor of 

24 the IMF reports to Congress that the People’s Re25 public of China— 


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1 (A) is in substantial compliance with obli2 gations of the People’s Republic of China under 

3 the Articles of Agreement of the IMF regarding 

4 orderly exchange rate arrangements; and 

5 (B) has undertaken exchange rate policies 

6 and practices consistent with those of other 

7 issuers of currencies used in determining the 

8 value of Special Drawing Rights; or 

9 (2) the date that is 7 years after the date of the 

10 enactment of this Act. 

Æ 


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