HR692-119

What This Bill Does

The China Exchange Rate Transparency Act of 2025 states congressional findings that China has obligations under IMF Article IV to maintain orderly exchange-rate arrangements, avoid exchange-rate manipulation, and cooperate with IMF surveillance, and that IMF Article VIII can require China to furnish data on gold and foreign-exchange holdings, including assets held by non-official agencies. It cites Treasury's November 2022 report concluding that China provides very limited transparency about its exchange-rate mechanism, policy objectives, offshore RMB activity, foreign-exchange intervention, and broader currency-management tools.

The bill requires the Treasury Secretary to instruct the United States Executive Director at the International Monetary Fund to use the U.S. voice and vote to advocate for increased transparency from China and enhanced IMF multilateral and bilateral surveillance of Chinese exchange-rate arrangements, including indirect intervention through Chinese financial institutions or state-owned enterprises. During Article IV consultations, the U.S. Executive Director must advocate inclusion of any significant divergences between Chinese exchange-rate policies and those of other Special Drawing Rights currency issuers. During IMF governance reviews, the U.S. must push IMF members and management to consider China's performance as a responsible stakeholder when evaluating quota and voting shares. The Act sunsets 30 days after the earlier of a U.S. Governor report that China is in substantial compliance with IMF exchange-rate obligations and SDR-consistent practices, or seven years after enactment.

Who Benefits and How

U.S. manufacturers competing with Chinese imports, U.S. exporters, Treasury international-affairs staff, the United States Executive Director at the IMF, IMF surveillance staff, congressional trade overseers, currency-market analysts, and companies exposed to yuan exchange-rate policy benefit because the bill presses for more disclosure, surveillance, and governance consequences around Chinese currency management.

Who Bears the Burden and How

The People's Republic of China, Chinese financial institutions, Chinese state-owned enterprises, Chinese currency-management authorities, IMF governance officials, Treasury officials, and the U.S. IMF Executive Director bear diplomatic, reporting, surveillance, and advocacy burdens because the bill requires the United States to press for scrutiny of China's exchange-rate practices until substantial compliance or the seven-year sunset.

Key Provisions

• Finds that China has IMF obligations on orderly exchange-rate arrangements, exchange-rate manipulation, and data disclosure.
• Cites Treasury findings that China lacks transparency on exchange-rate mechanisms, policy objectives, offshore RMB activity, and foreign-exchange intervention.
• Requires the Treasury Secretary to instruct the U.S. IMF Executive Director to advocate for increased Chinese exchange-rate transparency.
• Requires advocacy for enhanced IMF surveillance of direct and indirect Chinese foreign-exchange intervention through financial institutions or state-owned enterprises.
• Requires Article IV consultations to address significant divergences from other Special Drawing Rights currency issuers.
• Requires IMF governance reviews to consider China's performance as a responsible international monetary stakeholder.
• Provides a sunset after substantial Chinese compliance or seven years after enactment.