I 

118TH CONGRESS 

1ST SESSION H. R. 839 

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 HOUSE OF REPRESENTATIVES 

FEBRUARY 6, 2023 

Mr. MEUSER (for himself, Mr. DONALDS, and Mr. LOUDERMILK) 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. 

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 2023’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds as follows: 


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1 (1) Under Article IV of the Articles of Agree2 ment of the International Monetary Fund (IMF), 

3 the People’s Republic of China has committed to or4 derly exchange rate arrangements, the avoidance of 

5 exchange rate manipulation, and cooperation with 

6 the IMF to ensure ‘‘firm surveillance’’ of the ex7 change rate policies of the People’s Republic of 

8 China. Pursuant to Article VIII of the Articles of 

9 Agreement of the IMF, the IMF may require the 

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

11 and foreign exchange holdings, including assets held 

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

13 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 International 

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

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

15 for— 

16 (1) increased transparency from the People’s 

17 Republic of China with respect to the exchange rate 

18 arrangements of the People’s Republic of China, in19 cluding any indirect foreign exchange market inter20 vention through Chinese financial institutions or 

21 State-owned enterprises; 

22 (2) compliance by the People’s Republic of 

23 China with information requests from the IMF re24 garding the exchange rate policies and holdings of 


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1 the People’s Republic of China, consistent with the 

2 Articles of Agreement of the IMF; 

3 (3) in connection with consultations with the 

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

5 Articles of Agreement of the IMF, the publication of 

6 any significant divergences by the People’s Republic 

7 of China from the exchange rate policies of other 

8 issuers of currencies used in determining the value 

9 of Special Drawing Rights; and 

10 (4) during governance reviews of the IMF, 

11 stronger consideration by IMF members and man12 agement of non-transparent exchange rate policies 

13 undertaken by the People’s Republic of China when 

14 evaluating quota and voting shares at the IMF. 

15 SEC. 4. SUNSET. 

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

17 date that is 30 days after the earlier of— 

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

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

20 Republic of China— 

21 (A) is in substantial compliance with obli22 gations of the People’s Republic of China under 

23 the Articles of Agreement of the IMF regarding 

24 orderly exchange rate arrangements; and 


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1 (B) has undertaken exchange rate policies 

2 consistent with those of other issuers of cur3 rencies used in determining the value of Special 

4 Drawing Rights; and 

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

6 enactment of this Act. 

Æ 


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