Senators Dave McCormick (R-PA) and Catherine Cortez Masto (D-NV) have introduced the China Exchange Rate Transparency (CERT) Act, aimed at increasing transparency in China’s exchange rate practices through the International Monetary Fund (IMF).
The legislation directs the U.S. Executive Director at the IMF to advocate for greater transparency in China’s exchange rate arrangements and calls for stricter IMF oversight of China’s compliance with its obligations under the IMF’s Articles of Agreement. These obligations include maintaining orderly exchange rate arrangements and avoiding manipulation.
The U.S. Department of the Treasury’s recent report noted that China lacks transparency in its exchange rate policies compared to other major trading partners, raising concerns amid growing external imbalances.
The CERT Act is the Senate companion to H.R. 692, introduced by Rep. Dan Meuser (R-PA).
