Bill > S2146

This bill aims to increase transparency and accountability regarding China's exchange rate policies by directing the United States Executive Director at the International Monetary Fund (IMF) to advocate for several specific actions. These include pushing for enhanced multilateral and bilateral surveillance of China's exchange rate arrangements, including any indirect foreign exchange market interventions through Chinese financial institutions or state-owned enterprises. The bill requires the Treasury Secretary to instruct the U.S. Executive Director to advocate for inclusion of any significant divergences in China's exchange rate policies during IMF consultations, consider China's performance as a responsible stakeholder during IMF governance reviews, and seek increased transparency about how China uses Hong Kong's financial system to influence exchange rates. The legislation mandates annual reports to Congress detailing the specific actions taken and China's compliance with IMF transparency requirements. The bill will automatically terminate either when the U.S. Governor of the IMF reports that China is substantially complying with IMF exchange rate obligations or after seven years, whichever comes first. The bill's context is rooted in the Treasury Department's 2022 findings that China provides very limited transparency about its exchange rate mechanisms, which complicates assessments of its monetary policies.

Government Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2146/all-info