[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 270 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
S. RES. 270

Expressing the sense of the Senate that the International Monetary Fund 
 should investigate whether China is manipulating the rate of exchange 
         between the Chinese yuan and the United States dollar.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 6, 2005

  Mr. Bayh (for himself, Ms. Stabenow, and Mr. Schumer) submitted the 
 following resolution; which was referred to the Committee on Foreign 
                               Relations

_______________________________________________________________________

                               RESOLUTION


 
Expressing the sense of the Senate that the International Monetary Fund 
 should investigate whether China is manipulating the rate of exchange 
         between the Chinese yuan and the United States dollar.

Whereas the global current account deficit of the United States has already 
        reached almost $800,000,000,000 and is growing rapidly;
Whereas the global current account surplus of the People's Republic of China is 
        likely to reach $150,000,000,000 and is also growing very rapidly;
Whereas China has intervened massively in the exchange markets to artificially 
        block appreciation of China's currency;
Whereas China has been increasing its competitiveness by riding the dollar down 
        against other currencies, therefore achieving a trade-weighted 
        depreciation of about 10 percent over the past 3 years;
Whereas it is the responsibility of the International Monetary Fund to take the 
        lead in promoting correction of such huge, costly, and potentially 
        destabilizing imbalances in the world economy;
Whereas the International Monetary Fund's Articles of Agreement enjoin member 
        countries to ``avoid manipulating exchange rates or the international 
        monetary system in order to prevent effective balance-of-payments 
        adjustments or to gain unfair competitive advantage over other member 
        countries'';
Whereas the International Monetary Fund has identified ``protracted, large-scale 
        interventions in one direction in the exchange markets'' as indicating a 
        need for International Monetary Fund discussion with the offending 
        country; and
Whereas the People's Republic of China has engaged in such manipulation and 
        intervention: Now, therefore, be it
    Resolved, That it is the sense of the Senate that the President 
should instruct the United States Executive Director to the 
International Monetary Fund to bring a general complaint under the 
International Monetary Fund's Articles of Agreement against the 
People's Republic of China for not complying with Article IV of the 
Articles of Agreement and manipulating the rate of exchange of its 
currency against other currencies to gain an unfair trade advantage and 
to prevent effective balance of payment adjustments.
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