The United States (US) Treasury Department has removed Malaysia from its currency 'watch list' in its latest report, which assesses key trading partner countries based on foreign exchange markets that impact fair trade.
In the semi-annual analysis report, Malaysia was eliminated, while South Korea was included in the list, along with China, Japan, Taiwan, Singapore, Vietnam, and Germany.
These countries show large trade surpluses and foreign exchange activities that could potentially give the US a competitive advantage.
In particular, Japan, South Korea, Taiwan, Vietnam, and Germany are recognized for their high bilateral trade surpluses as well as significant current account balances, which require further attention.
Singapore was also noted for its continuous and one-way currency intervention.
The US Treasury also highlighted Beijing's lack of transparency in its currency management and its large trade imbalance with the US, making China an "outlier" among major economies.
The Secretary of the Treasury, Janet Yellen, emphasized the importance of these countries implementing a more balanced economic policy and reducing trade imbalances.
