S-4418 : Still Just a Bill

The "China Exchange Rate Transparency Act of 2024" (S. 4418) aims to increase transparency regarding the exchange rate policies of the People's Republic of China. Key provisions include:

• Requires the United States Executive Director at the International Monetary Fund (IMF) to advocate for greater transparency from China regarding its exchange rate arrangements.
• Encourages enhanced multilateral and bilateral surveillance by the IMF of China's exchange rate policies, including balance of payments data and foreign exchange market intervention.
• Calls for consideration of any significant divergences by China from the exchange rate policies of other major currencies when consulting with the People's Republic of China under Article IV of the Articles of Agreement of the IMF.
• Directs stronger consideration of China's performance as a responsible stakeholder in the international monetary system when evaluating quota and voting shares at the IMF.
• Mandates the Secretary of the Treasury to determine whether China should be designated as a currency manipulator.

The Act will sunset either 7 years after enactment or 30 days after the United States Governor of the IMF reports to Congress that the People's Republic of China is in substantial compliance with obligations regarding orderly exchange rate arrangements and consistent exchange rate policies.