Bank Negara Malaysia and US Treasury reaffirm commitment to avoid exchange rate manipulation and promote transparent forex policies.
KUALA LUMPUR: Bank Negara Malaysia and the United States Department of the Treasury have agreed to maintain close consultations on macroeconomic and foreign exchange matters.
Both nations reaffirmed their commitment under International Monetary Fund Articles of Agreement to avoid manipulating exchange rates for unfair competitive advantage.
They also agreed that macroprudential or capital flow measures will not target exchange rates for competitive purposes.
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Both countries pledged that government investment vehicles like pension funds invest abroad for risk-adjusted returns rather than exchange rate targeting.
The two nations concurred that foreign exchange market intervention should only address excessive volatility or disorderly movements.
Bank Negara Malaysia underscored the importance of transparent exchange rate policies in its statement.
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The central bank commits to disclose net foreign exchange purchases or sales on an aggregated basis over twelve months.
This data will be published every end-March and end-September for public transparency.
Bank Negara Malaysia will continue releasing foreign exchange reserves and forward position data monthly.
This practice aligns with the International Monetary Fund’s Data Template on International Reserves and Foreign Currency Liquidity.
Additionally, the central bank commits to share aggregated six-month foreign exchange transaction data with the US Treasury.
This confidential bilateral data sharing will occur with a three-month lag for both parties. – Bernama
