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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4418 Introduced in Senate (IS)]

<DOC>

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.

    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 2024''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Under Article IV of the Articles of Agreement of the 
        International Monetary Fund (in this Act referred to as the 
        ``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 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 regarding the validity of 
        balance of payments data of the People's Republic of China or 
        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 the People's Republic of China as a responsible stakeholder 
        in the international monetary system when evaluating quota and 
        voting shares at the IMF.

SEC. 4. DETERMINATION REGARDING CURRENCY MANIPULATION.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of the Treasury shall determine whether or not the 
People's Republic of China meets the criteria to be designated a 
currency manipulator under section 3004(b) of the Exchange Rates and 
International Economic Policy Coordination Act of 1988 (22 U.S.C. 
5304(b)).

SEC. 5. SUNSET.

    This Act shall have no force or effect on and after the date that 
is 30 days after the earlier of--
            (1) the date that the United States Governor of the IMF 
        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 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; or
            (2) the date that is 7 years after the date of the 
        enactment of this Act.
                                 <all>
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