Senators Dave McCormick and Catherine Cortez Masto have introduced the China Exchange Rate Transparency (CERT) Act, aimed at increasing transparency in China’s exchange rate arrangements at the International Monetary Fund (IMF). The legislation seeks to address concerns about China’s currency practices.
“China’s currency manipulation and secrecy are further examples of the CCP putting American businesses at a disadvantage in the global economy,” stated Senator McCormick. He emphasized the need for more transparency and oversight of China’s economic commitments, expressing pride in collaborating with Senator Cortez Masto and Representative Dan Meuser on this initiative.
Senator Cortez Masto highlighted the importance of fair trade practices globally. “As we work and trade with countries all around the world, it’s critical that every nation follows the same rules that make our global system fair,” she said. She pledged to continue advocating for accountability regarding unfair trade practices by China.
The People’s Republic of China has obligations under Article IV of the IMF’s Articles of Agreement to maintain orderly exchange rate arrangements and avoid manipulation. However, a recent report from the Department of the Treasury noted a lack of transparency in China’s exchange rate policies, raising concerns about its commitment to transparency amid rising external imbalances affecting other nations.
The proposed bill would instruct the U.S. Executive Director at the IMF to push for greater transparency in China’s exchange rate policies and call for stricter oversight by the IMF on China’s adherence to its commitments under their Articles of Agreement.
This Senate bill complements H.R. 692, introduced by Representative Dan Meuser.
