Washington, D.C. – Today, U.S. Senator Catherine Cortez Masto (D-Nev.) and Dave McCormick (R-Penn.) introduced the China Exchange Rate Transparency (CERT) Act, which would direct the U.S. Executive Director at the IMF to advocate for enhanced transparency in China’s exchange rate arrangements at the International Monetary Fund (IMF). The bill also calls for stricter oversight of China’s compliance with its commitments under the IMF’s Articles of Agreement which prohibit countries from manipulating currencies.
“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,” said Senator Cortez Masto. “I will continue to push for Communist China to be held accountable for unfair trade practices, like currency manipulation, which take advantage of the rest of the world.”
“China’s currency manipulation and secrecy are further examples of the CCP putting American businesses at a disadvantage in the global economy,” said Senator McCormick. “We need more transparency and stricter oversight of China’s economic commitments. That’s why I’m proud to partner with Senator Cortez Masto and fellow Pennsylvanian Rep. Dan Meuser on this legislation to stand up to China’s economic malpractice.”
Under Article IV of the Articles of Agreement of the International Monetary Fund, the People’s Republic of China (PRC) has committed to orderly exchange rate arrangements, the avoidance of exchange rate manipulation, and cooperation with the Fund to ensure ‘‘firm surveillance’’ of PRC exchange rate policies. However, according to the Department of the Treasury’s most recent report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, “China stands out among our major trading partners in its lack of transparency around its exchange rate policies and practices.” When any country artificially lowers the value of their currency, it allows them to sell to more countries than other nations who are trying follow the rules, gaining an unfair trade advantage.
Read the full bill here. The House companion bill, H.R. 692, was introduced by Rep. Dan Meuser (R-Penn.-09) and passed the House of Representatives on February 10.
Senator Cortez Masto has led efforts in Congress to stand up to the Chinese Communist Party’s influence and protect the American national and economic security. She introduced the PASS Act to ban individuals and entities controlled by China, Russia, Iran, and North Korea from purchasing agricultural land and businesses located near U.S. military installations or sensitive sites and the Strengthening Exports Against China Act, which would incentivize economic growth by eliminating barriers for American businesses competing directly with China in emerging industries like artificial intelligence and semiconductors. She’s also introduced the Pacific Partnership Act to strengthen the United States’ strategic partnerships with Pacific Island nations, support sustainable development, and combat the increasing Chinese aggression in the region.
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