S.Amdt. 3449

SA 3449, submitted by Mr. McCormick, aims to add a new section (SEC. 1248) to bill S. 2296. The purpose of this addition is to push for more transparency regarding the exchange rate policies of the People's Republic of China.

The amendment adds the following:

• Findings: It notes that China committed to orderly exchange rate arrangements and avoiding manipulation under International Monetary Fund (IMF) agreements. It also cites a November 2022 Treasury report stating that China provides very limited transparency regarding its exchange rate mechanism and is an outlier among major economies.

• Required Actions: The Secretary of the Treasury must tell the U.S. Executive Director at the IMF to use the U.S. voice and vote to advocate for:

  • Increased transparency and better surveillance of China's exchange rate arrangements, including indirect interventions through state-owned enterprises or financial institutions.
  • Including any significant divergences in China's policies compared to other currencies used for Special Drawing Rights during IMF consultations.
  • Considering China's performance as a responsible stakeholder in the international monetary system when the IMF evaluates voting shares and quotas.

• Sunset Provision: These requirements end 30 days after the earlier of two dates: seven years after the Act is passed, or when the U.S. Governor of the IMF reports that China is in substantial compliance with its IMF obligations and its policies are consistent with other Special Drawing Rights currency issuers.