The United States Department of the Treasury and Bank Negara Malaysia have agreed to maintain ongoing discussions regarding macroeconomic issues and foreign exchange policy. Both countries confirmed their commitment under the International Monetary Fund (IMF) Articles of Agreement to avoid manipulating exchange rates or the international monetary system for balance of payments adjustment or competitive advantage.
According to a joint statement, "any macroprudential or capital flow measures will not target exchange rates for competitive purposes; other government investment vehicles such as pension funds invest abroad for risk-adjusted return and diversification purposes, and not to target the exchange rate for competitive purposes; and in cases when intervention in foreign exchange markets may be considered, it should be reserved for combatting excess volatility and disorderly movements in exchange rates, with the expectation that this tool would be considered equally appropriate for addressing excessively volatile or disorderly depreciation or appreciation."
The two institutions also emphasized the need for transparent policies on exchange rates. Bank Negara Malaysia has committed to publicly disclose aggregated net purchases or sales of foreign currency over a 12-month period every six months, as well as monthly updates on reserves data and forward positions following IMF guidelines.
Additionally, as part of continued cooperation, Bank Negara Malaysia will provide the U.S. Treasury with bilateral disclosures of net foreign currency transactions aggregated over six months with a three-month delay. This information will remain confidential unless Bank Negara Malaysia agrees otherwise.
