Senators Dave McCormick (R-PA) and Catherine Cortez Masto (D-NV) have introduced the China Exchange Rate Transparency (CERT) Act, which seeks to improve transparency in China’s exchange rate practices at the International Monetary Fund (IMF).
“China’s currency manipulation and secrecy are further examples of the CCP putting American businesses at a disadvantage in the global economy,” Senator McCormick said. “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.”
“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.”
The legislation responds to concerns raised by a recent U.S. Department of Treasury report, which highlighted that among major trading partners, China lacks transparency regarding its exchange rate policies. The report stated that these practices create significant effects on other economies.
If enacted, the CERT Act would instruct the U.S. Executive Director at the IMF to advocate for greater transparency from China about its exchange rate arrangements. It would also call for increased IMF oversight of China’s adherence to its obligations under Article IV of the IMF Articles of Agreement—specifically relating to maintaining orderly exchange rates and avoiding manipulation.
The Senate bill is a companion measure to H.R. 692, previously introduced in the House by Representative Dan Meuser (R-PA).
