KUALA LUMPUR: Bank Negara Malaysia (BNM) has welcomed Malaysia's recent removal from the US currency monitoring list, viewing it as a positive affirmation of the country's market-driven currency practices.
BNM governor Datuk Seri Abdul Rasheed Ghaffour said Malaysia's exit from the list reflects the country's commitment to a market-determined exchange rate.
"We welcome this development with Malaysia being removed from the currency manipulation monitoring list."
"Malaysia has never used exchange rates to gain a competitive edge in the market. So, this reaffirms our confidence and solidifies our stance on this matter," Abdul Rasheed told a press conference here today.
The U.S. Department of Treasury had previously included Malaysia on the list, but recent assessments have led to its removal, signaling greater confidence in Malaysia's currency management approach.
According to a Treasury Department report released Thursday, the US has added South Korea to its "monitoring list" of major trading partners whose currency practices call for closer attention.
Besides South Korea, other economies on the monitoring list were China, Japan, Taiwan, Singapore, Vietnam, and Germany.
The semi-annual report looks into countries with large trade surpluses with respect to the United States that also actively intervene in foreign exchange markets to gain a competitive advantage.
It concluded that no major US trading partner manipulated its exchange rate to prevent "effective balance of payments adjustments" or gain unfair competitive advantage in global trade in the four quarters through June 2024.