U.S. House Approves Legislation To Address Currency Manipulation

The U.S. House of Representatives recently approved a piece of legislation introduced by Rep. Dan Meuser (R-Penn.) that would address currency manipulation by the Chinese government. The final vote in support of the bill, 388-7, was overwhelmingly bipartisan.

Specifically, the China Exchange Rate Transparency (CERT) Act, directs the United States Executive Director at the International Monetary Fund (IMF) to advocate for enhanced transparency in China’s exchange rate arrangements. The legislation also calls for stricter IMF oversight of China’s compliance with its commitments under the IMF’s Articles of Agreement, including orderly exchange rate arrangements and the avoidance of manipulation.

“China’s long-standing disregard for financial transparency and its manipulation of foreign exchange markets have tilted the playing field against U.S. businesses and disrupted global economic norms,” Rep. Meuser said. “This legislation demands accountability and insists on adherence to international standards of transparency and fairness.” Read more about the bill at this link.

Unfortunately, a similar bill has not yet been introduced in the U.S. Senate. Stay tuned to Connecting the Dots to see if companion legislation emerges and is voted on by the Senate.

In related news: Reuters reported the Trump administration “is looking beyond tariffs and non-tariff barriers to examine currency manipulation.” Indeed, Treasury Secretary Scott Bessent noted, “The U.S. has a strong dollar policy, but because we have a strong dollar policy, it doesn’t mean that other countries get to have a weak currency policy.”