H.R. 692

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 692 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
1st Session
H. R. 692

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

February 11, 2025

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.

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.

The Congress finds as follows:
(1) Under Article IV of the Articles of Agreement of the 
International Monetary Fund (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 International Monetary Fund (in this Act 
referred to as 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 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 China as a responsible stakeholder in the international 
monetary system when evaluating quota and voting shares at the 
IMF.

SEC. 4. SUNSET.

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

Passed the House of Representatives February 10, 2025.

Attest:

KEVIN F. MCCUMBER,

Clerk.