Findings

The Congress finds as follows: (1) Under Article IV of the Articles of Agreement of the International Monetary Fund (IMF), the People’s Republic of China has committed to orderly exchange rate arrangements, the avoidance of exchange rate manipulation, and cooperation with the IMF to ensure firm surveillance of the exchange rate policies of the People’s Republic of China. Pursuant to Article VIII of the Articles of Agreement of the IMF, the IMF may require the People’s Republic of China to furnish data on gold and foreign exchange holdings, including assets held by non-official agencies of the People’s Republic of China. (2) In its November 2022 report, entitled Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, the Department of the Treasury concluded, China provides very limited transparency regarding key features of its exchange rate mechanism, including the policy objectives of its exchange rate management regime and its activities in the offshore RMB market.. The Department continued: China’s lack of transparency and use of a wide array of tools complicate Treasury’s ability to assess the degree to which official actions are designed to impact the exchange rate.. (3) In that report, the Department further noted that China’s failure to publish foreign exchange intervention and broader lack of transparency around key features of its exchange rate mechanism make it an outlier among major economies and warrants Treasury’s close monitoring..

The Congress finds as follows: (1) Under Article IV of the Articles of Agreement of the International Monetary Fund (IMF), the People’s Republic of China has committed to orderly exchange rate arrangements, the avoidance of exchange rate manipulation, and cooperation with the IMF to ensure firm surveillance of the exchange rate policies of the People’s Republic of China. Pursuant to Article VIII of the Articles of Agreement of the IMF, the IMF may require the People’s Republic of China to furnish data on gold and foreign exchange holdings, including assets held by non-official agencies of the People’s Republic of China. (2) In its November 2022 report, entitled Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, the Department of the Treasury concluded, China provides very limited transparency regarding key features of its exchange rate mechanism, including the policy objectives of its exchange rate management regime and its activities in the offshore RMB market.. The Department continued: China’s lack of transparency and use of a wide array of tools complicate Treasury’s ability to assess the degree to which official actions are designed to impact the exchange rate.. (3) In that report, the Department further noted that China’s failure to publish foreign exchange intervention and broader lack of transparency around key features of its exchange rate mechanism make it an outlier among major economies and warrants Treasury’s close monitoring..