US Representative John Dingell has introduced a bill that addresses currency manipulation. Specifically, the bill would require any nations that enter into future trade agreements with the US to permit their currencies to float. Currently, a number of countries, mainly in Southeast Asia, either explicitly peg their currencies to the USD or intervene in forex markets to prevent their domestic currencies from significantly fluctuating. Dingell has argued currency manipulation is tantamount to a trade subsidy or tax break, as a nation’s goods and services are made artificially cheap by an undervalued exchange rate.  He cited China and Japan as serial currency manipulators who have hamstrung many American firms. The Detroit Free Press reports:

Dingell’s bill would apply to all countries that trade with the United States by requiring the free trading of currencies as an objective for every new trade agreement. The bill also would require the administration to report on currency manipulations to Congress and seek compensation for harmed industries.

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