InSeptember2010，HouseofRepresentativesofUnitedStatespassedCurrencyReformfor Fair TradeActwhichis characterizedas imposingcurrencyexchange-ratepolicyintointernationaltrade bystipulatingthat “fundamentallyundervaluedcurrency”consititutes “exportsubsidies”.The Act，however，violates internationallawinthreeaspects. First，its characterizedmeasureis inconsistent withIMFAgreementandWTOAgreementonjurisdictionmatters；second，UnitedStates has norightto unilaterallydetermineexchangerateundervaluationofothercountries；third，accordingtostandards pro-videdby SCMAgreement，fundamentallyundervaluedcurrencydoes notcontainfeatures ofexportsubsidies. For China，itis advisedtoinsistexchangerateis of national sovereignty，exploreways toalleviateex-change-ratepressurefromtheUnited States，andresorttoWTOdisputesettlementbodywhennecessary.