[Congressional Record Volume 171, Number 133 (Friday, August 1, 2025)]
[Senate]
[Page S5233]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3449. Mr. McCORMICK submitted an amendment intended to be proposed 
by him to the bill S. 2296, to authorize appropriations for fiscal year 
2026 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle D of title XII, add the following:

     SEC. 1248. ADVOCACY FOR INCREASED EXCHANGE RATE TRANSPARENCY 
                   FROM THE PEOPLE'S REPUBLIC OF CHINA.

       (a) Findings.--Congress makes the following findings:
       (1) Under Article IV of the Articles of Agreement of the 
     International Monetary Fund, the People's Republic of China 
     has committed to orderly exchange rate arrangements, the 
     avoidance of exchange rate manipulation, and cooperation with 
     the Fund 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 Fund, the 
     Fund 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 
     [renminbi] 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, ``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.''.
       (b) Advocacy for Increased Exchange Rate Transparency From 
     the People's Republic of China.--The Secretary of the 
     Treasury shall instruct the United States Executive Director 
     at the International Monetary Fund to use the voice and vote 
     of the United States to advocate for--
       (1) increased transparency from the People's Republic of 
     China, and enhanced multilateral and bilateral surveillance 
     by the Fund, with respect to the exchange rate arrangements 
     of the People's Republic of China, including any indirect 
     foreign exchange market intervention through Chinese 
     financial institutions or state-owned enterprises;
       (2) in connection with consultations with the People's 
     Republic of China under Article IV of the Articles of 
     Agreement of the Fund, the inclusion of any significant 
     divergences by the People's Republic of China from the 
     exchange rate policies of other issuers of currencies used in 
     determining the value of Special Drawing Rights; and
       (3) during governance reviews of the Fund, stronger 
     consideration by members and management of the Fund of the 
     performance of the People's Republic of China as a 
     responsible stakeholder in the international monetary system 
     when evaluating quota and voting shares at the Fund.
       (c) Sunset.--The requirement under subsection (b) shall 
     terminate on the date that is 30 days after the earlier of--
       (1) the date on which the United States Governor of the 
     International Monetary Fund reports to Congress that the 
     People's Republic of China--
       (A) is in substantial compliance with obligations of the 
     People's Republic of China under the Articles of Agreement of 
     the Fund regarding orderly exchange rate arrangements; and
       (B) has undertaken exchange rate policies and practices 
     consistent with those of other issuers of currencies used in 
     determining the value of Special Drawing Rights; or
       (2) the date that is 7 years after the date of the 
     enactment of this Act.
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