China Exchange Rate Transparency Act of 2023
This bill requires the U.S. Executive Director at the International Monetary Fund (IMF) to use the voice and vote of the United States to advocate for increased exchange rate transparency from China.
Some areas of focus for this advocacy are (1) Chinese exchange rate arrangements, including any indirect foreign exchange market intervention through Chinese financial institutions or state-owned enterprises; (2) enhanced multilateral and bilateral surveillance by the IMF; and (3) stronger consideration of China's performance as a responsible stakeholder in the international monetary system when evaluating quota and voting shares at the IMF.
The requirements of the bill expire seven years and 30 days after the date of the bill's enactment or earlier if China meets certain conditions regarding its exchange rate policies.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 839 Introduced in House (IH)]
<DOC>
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.
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 2023''.
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 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) compliance by the People's Republic of China with
information requests from the IMF regarding the exchange rate
policies and holdings of the People's Republic of China,
consistent with the Articles of Agreement of the IMF;
(3) in connection with consultations with the People's
Republic of China under Article IV of the Articles of Agreement
of the IMF, the publication 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
(4) during governance reviews of the IMF, stronger
consideration by IMF members and management of non-transparent
exchange rate policies undertaken by the People's Republic of
China 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
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.
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Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 36 - 0.
Reported (Amended) by the Committee on Financial Services. H. Rept. 118-291.
Reported (Amended) by the Committee on Financial Services. H. Rept. 118-291.
Placed on the Union Calendar, Calendar No. 235.
Mr. McHenry moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H35-37)
DEBATE - The House proceeded with forty minutes of debate on H.R. 839.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
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Considered as unfinished business. (consideration: CR H124)
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 379 - 1 (Roll no. 9). (text: 1/10/2024 CR H35)
Roll Call #9 (House)On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 379 - 1 (Roll no. 9). (text: 1/10/2024 CR H35)
Roll Call #9 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Foreign Relations.