China Exchange Rate Transparency Act of 2025

The China Exchange Rate Transparency Act would require the U.S. Executive Director at the International Monetary Fund (IMF) to use America's voice and vote to advocate for increased transparency from China regarding its exchange rate policies. The bill addresses concerns that China lacks transparency in how it manages its currency and conducts foreign exchange market interventions, making it difficult for the U.S. Treasury Department to assess whether China is manipulating its currency for trade advantages.

The legislation would direct the IMF to conduct enhanced oversight of China's compliance with international commitments to maintain orderly exchange rate arrangements and avoid currency manipulation. It would also call for the IMF to examine whether China's exchange rate practices diverge significantly from those of other major economies whose currencies are used in international monetary calculations.

The bill passed the House on February 10, 2025, with overwhelming bipartisan support (388-7 votes). It is now in the Senate Committee on Foreign Relations. If enacted, the bill would remain in effect for seven years or until the U.S. Governor of the IMF reports that China has achieved substantial compliance with international exchange rate obligations and practices consistent with other major economies. Supporters argue the legislation would help protect American workers and businesses from unfair competition resulting from opaque Chinese currency practices.