Bill · H.R. 386· House(119-HR-386)
Chinese Currency Accountability Act of 2025
- Introduced
- 1/14/2025
- Last activity
- 2/11/2025 — Received in the Senate and Read twice and referred to the Committee on Foreign Relations.
- Sponsored by
- Warren Davidson
- Cosponsors
- - 1 - 0
- Introduced
- Passed House
- In Senate committee
What this bill would do
This bill, known as the "Chinese Currency Accountability Act of 2025," directs the Secretary of the Treasury to instruct U.S. officials at the International Monetary Fund to oppose increasing the weight of the Chinese renminbi in the Special Drawing Rights basket.
The opposition is required unless the Secretary provides a written report to specific House and Senate committees.
This report must certify that China is meeting its obligations under the Fund's Articles of Agreement.
Additionally, the report must certify that China has not been found to have manipulated its currency in the preceding 12 months.
Finally, the report must confirm China adheres to the rules of the Paris Club and the OECD Arrangement on Officially Supported Export Credits.
The mandates in this act expire 10 years after its enactment.
Yes
Does this make trade with other countries easier?+2
The bill seeks to prevent unfair economic advantages by requiring certification that China has not manipulated its currency.
Would high-income households be better off under this?+1
By targeting currency manipulation, the bill aims to maintain more predictable international financial markets.
Would business owners be better off under this?+1
Ensuring a level playing field regarding currency manipulation may benefit domestic businesses competing globally.
The opposite
Does this strengthen ties with allied countries?-1
The mandate to oppose a specific currency weight increase may create friction in international financial negotiations.
Who it would affect, and how
Potential Positive Impacts for People
-
Ensuring Currency Integrity: By requiring the Secretary of the Treasury to verify that the People's Republic of China has not manipulated its currency in the last 12 months, the bill aims to prevent the weighting of the Special Drawing Rights basket based on unreliable or manipulated currency values (Section 2).
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Holding Foreign Nations to Global Standards: The bill requires certification that China is in compliance with its obligations under Article VIII of the Articles of Agreement of the Fund, which ensures that international financial standards are being met before increasing the renminbi's weight (Section 2).
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Promoting Global Financial Rules: The requirement for China to adhere to the rules and principles of the Paris Club and the OECD Arrangement on Officially Supported Export Credits aims to ensure that the Chinese currency's role in the global economy is backed by established international credit rules (Section 2).
Potential Negative Impacts for People
-
Restrictions on International Monetary Policy: The mandate forces U.S. officials to oppose increases to the renminbi's weight in the Special Drawing Rights basket unless very specific conditions are met, which could limit the flexibility of the U.S. voice at the International Monetary Fund (Section 2).
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Potential for Timed Expiration: The provisions in the act will lose all legal force 10 years after the date it is enacted, meaning any accountability measures established by this bill would cease to exist after that period (Section 3).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+1Good For High Income Households+1
- National Security And Foreign Policy
- Improves International Trade+2Improves International Alliances-1
- 2/11/2025
- Received in the Senate and Read twice and referred to the Committee on Foreign Relations.
- 2/10/2025
- Motion to reconsider laid on the table Agreed to without objection.
- Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H595)
- On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H595)
- DEBATE - The House proceeded with forty minutes of debate on H.R. 386.
- Considered under suspension of the rules. (consideration: CR H595-596)
- Mr. Hill (AR) moved to suspend the rules and pass the bill.
- 2/7/2025
- 1 Cosponsor added.
- 1/14/2025
- Referred to the House Committee on Financial Services.
- Introduced in House
Daniel MeuserRepublican · Pennsylvania