IIB 

118TH CONGRESS 

2D SESSION H. R. 839 

IN THE SENATE OF THE UNITED STATES 

JANUARY 16, 2024 

Received; read twice and referred to the Committee on Foreign Relations 

AN ACT 

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, 

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1 SECTION 1. SHORT TITLE. 

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

3 Transparency Act of 2023’’. 

4 SEC. 2. FINDINGS. 

5 The Congress finds as follows: 

6 (1) Under Article IV of the Articles of Agree7 ment of the International Monetary Fund (IMF), 

8 the People’s Republic of China has committed to or9 derly exchange rate arrangements, the avoidance of 

10 exchange rate manipulation, and cooperation with 

11 the IMF to ensure ‘‘firm surveillance’’ of the ex12 change rate policies of the People’s Republic of 

13 China. Pursuant to Article VIII of the Articles of 

14 Agreement of the IMF, the IMF may require the 

15 People’s Republic of China to furnish data on gold 

16 and foreign exchange holdings, including assets held 

17 by non-official agencies of the People’s Republic of 

18 China. 

19 (2) In its November 2022 report, entitled 

20 ‘‘Macroeconomic and Foreign Exchange Policies of 

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

22 Department of the Treasury concluded, ‘‘China pro23 vides very limited transparency regarding key fea24 tures of its exchange rate mechanism, including the 

25 policy objectives of its exchange rate management 

26 regime and its activities in the offshore RMB marVerDate Sep 11 2014 00:45 Jan 17, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H839.RFS H839
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1 ket.’’. The Department continued: ‘‘China’s lack of 

2 transparency and use of a wide array of tools com3 plicate Treasury’s ability to assess the degree to 

4 which official actions are designed to impact the ex5 change rate.’’. 

6 (3) In that report, the Department further 

7 noted that ‘‘China’s failure to publish foreign ex8 change intervention and broader lack of trans9 parency around key features of its exchange rate 

10 mechanism make it an outlier among major econo11 mies and warrants Treasury’s close monitoring.’’. 

12 SEC. 3. ADVOCACY FOR INCREASED EXCHANGE RATE 

13 TRANSPARENCY FROM CHINA. 

14 The Secretary of the Treasury shall instruct the 

15 United States Executive Director at the International 

16 Monetary Fund (in this Act referred to as the ‘‘IMF’’) 

17 to use the voice and vote of the United States to advocate 

18 for— 

19 (1) increased transparency from the People’s 

20 Republic of China, and enhanced multilateral and bi21 lateral surveillance by the IMF, with respect to the 

22 exchange rate arrangements of the People’s Republic 

23 of China, including any indirect foreign exchange 

24 market intervention through Chinese financial insti25 tutions or state-owned enterprises; 

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1 (2) in connection with consultations with the 

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

3 Articles of Agreement of the IMF, the inclusion of 

4 any significant divergences by the People’s Republic 

5 of China from the exchange rate policies of other 

6 issuers of currencies used in determining the value 

7 of Special Drawing Rights; and 

8 (3) during governance reviews of the IMF, 

9 stronger consideration by IMF members and man10 agement of the performance of China as a respon11 sible stakeholder in the international monetary sys12 tem when evaluating quota and voting shares at the 

13 IMF. 

14 SEC. 4. SUNSET. 

15 This Act shall have no force or effect on or after the 

16 date that is 30 days after the earlier of— 

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

18 the IMF reports to the Congress that the People’s 

19 Republic of China— 

20 (A) is in substantial compliance with obli21 gations of the People’s Republic of China under 

22 the Articles of Agreement of the IMF regarding 

23 orderly exchange rate arrangements; and 

24 (B) has undertaken exchange rate policies 

25 and practices consistent with those of other 

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1 issuers of currencies used in determining the 

2 value of Special Drawing Rights; and 

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

4 enactment of this Act. 

Passed the House of Representatives January 12, 

2024. 

Attest: KEVIN F. MCCUMBER, 

Clerk.