US Treasury and Bank of Thailand agree on exchange rate policies

The U.S. Department of the Treasury and the Bank of Thailand issued a joint statement outlining agreements on macroeconomic and foreign exchange matters. Both institutions reaffirmed their commitment under IMF Articles of Agreement to avoid manipulating exchange rates or the international monetary system to prevent balance of payments adjustment or gain competitive advantages.

The agreement establishes that macroprudential or capital flow measures will not target exchange rates for competitive purposes. Government investment vehicles, including pension funds, will not be used to target exchange rates competitively by either party.

Both institutions agreed that foreign exchange market intervention should be reserved for combating excess volatility and disorderly exchange rate movements. The statement indicates this tool would be considered appropriate for addressing both volatile depreciation and appreciation.

The Treasury and Bank of Thailand committed to transparency in exchange rate policies and practices. They agreed to publicly disclose foreign exchange intervention operations at least semiannually with a quarterly lag.

Both parties will publish foreign exchange reserves data and forward positions monthly according to the IMF's Data Template on International Reserves and Foreign Currency Liquidity.

The statement emphasizes the continuation of close consultations between the two institutions on macroeconomic and foreign exchange matters, describing the relationship as a trusted partnership.

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