US-Thai-Malaysia Currency Exchange Transparency Agreement

Strategic Agreement from the U.S. Department of the Treasury

The U.S. Department of the Treasury announced that it has signed an important foreign exchange transparency agreement with the Bank of Thailand and the Bank Negara Malaysia. This agreement aims to strengthen consultations on macroeconomic issues and foreign exchange policies.

Commitment to the IMF Agreement

The statement emphasized that the parties have renewed their commitments under the framework of the International Monetary Fund (IMF). The three countries agreed to refrain from manipulating exchange rates or the international monetary system.

Competitive Foreign Exchange Policies and Market Intervention

The parties stated that they will not target exchange rates for competitive purposes and will only intervene in the markets in cases of excessive volatility. This aims to reduce fluctuations in the markets.

Transparency in Foreign Exchange Policy

The importance of transparency in foreign exchange policies was emphasized, and it was reported that the U.S. Department of the Treasury and the Bank of Thailand have agreed to share data on foreign exchange interventions at least every six months, with a three-month delay. Additionally, data on foreign exchange reserves and forward positions will be disclosed regularly every month.

Malaysia's Commitment

The Bank Negara Malaysia has committed to publicly disclose net trading activities in the foreign exchange market on a twelve-month cumulative basis in March and September of each year.