Sen. Katie Britt, R-Ala., a member of the Senate Committee on Banking, Housing, and Urban Affairs, recently joined U.S. Senators Ted Budd (R-N.C), Joe Manchin, D-W.Va., and a group of colleagues in introducing the Chinese Currency Accountability Act, legislation that would require the U.S. Secretary of the Treasury to oppose any future International Monetary Fund (IMF) elevations of China’s official currency, unless the Chinese Communist Party undertakes significant economic reforms.
In 2016, the Chinese renminbi was elevated by the IMF to their elite currency basket, which places it alongside the American dollar, the European Union’s euro, the British pound, and the Japanese yen in determining the value of the IMF’s Special Drawing Rights (SDR). A second elevation in 2022 placed the renminbi as the IMF’s third most prominent currency, behind only the dollar and the euro. These two elevations occurred despite the fact that China has no independent central bank and some of the least transparent monetary policies in the world.
The Chinese Currency Accountability Act will require the Treasury Secretary to formally oppose any future actions that the IMF takes to further elevate China’s currency unless they undertake substantial economic overhauls.
“Time and time again, the Chinese Communist Party has shown that they’re not willing to play by the rules that govern international commerce. Given the CCP’s continued malfeasance on the world stage, the Treasury Department should not allow the IMF to further legitimize and strengthen Chinese currency in international financial markets. That’s why we’re introducing this critical legislation to protect American economic and national security,” said Senator Katie Britt.
In addition to Senators Britt, Budd, and Manchin, co-sponsors of the bill include Senate Republican Conference Chair John Barrasso, R-Wyo., and U.S. Senators Mike Braun, R-Ind., and Joni Ernst, R-Iowa. Congressman Warren Davidson, OH-08, has filed a companion bill in the U.S. House of Representatives.
