WASHINGTON, D.C. — Senators Dave McCormick (R-PA) and Catherine Cortez Masto (D-NV) have introduced the China Exchange Rate Transparency (CERT) Act, a bipartisan bill aimed at demanding greater transparency and stricter oversight of China’s exchange rate arrangements at the International Monetary Fund (IMF).
The bill, which is a Senate companion to H.R. 692 introduced by Representative Dan Meuser (R-PA), seeks to hold China accountable for its currency policies, which critics say have given the country an unfair advantage in global markets. It directs the U.S. Executive Director at the IMF to push for enhanced transparency and stronger monitoring of the People’s Republic of China’s (PRC) adherence to its commitments under the IMF’s Articles of Agreement.
China, under Article IV of the IMF’s fundamental framework, is obligated to maintain orderly exchange rate arrangements, avoid currency manipulation, and cooperate with IMF surveillance of its exchange rate policies. However, the U.S. Department of the Treasury’s recent report on major trading partners pointed to China’s “lack of transparency” in its currency practices, raising concerns over the country’s commitment to global economic standards.
“China’s currency manipulation and secrecy are further examples of the CCP putting American businesses at a disadvantage in the global economy,” Senator McCormick said. “We need more transparency and stricter oversight of China’s economic commitments. That’s why I’m proud to partner with Senator Cortez Masto and fellow Pennsylvanian Rep. Dan Meuser on this legislation to stand up to China’s economic malpractice.”
Senator Cortez Masto emphasized the broader implications of China’s practices, stating, “As we work and trade with countries all around the world, it’s critical that every nation follows the same rules that make our global system fair. I will continue to push for Communist China to be held accountable for unfair trade practices, like currency manipulation, which take advantage of the rest of the world.”
The CERT Act represents a notable bipartisan effort in addressing longstanding concerns about China’s economic behavior and ensuring a level playing field for U.S. businesses and global stakeholders. By calling for stricter IMF oversight, the bill underscores the importance of transparency in global trade and financial systems.
Lawmakers backing the bill hope it will apply needed pressure on international organizations and ensure China adheres to its commitments, preventing economic imbalances that affect the global economy.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.