It is said that the US Treasury Department is putting several currencies on the list for them to monitor. In this regard, the US treasury also signals the acceptance of some currency intervention, which is carried out before each month with official data.

The US Treasury Department is busy. They are also more focused on monitoring several currencies coordinated toward a particular market. 7 currencies are concentrated on monitoring; there were even 9 currencies in the previous period.

It is stated that the currencies included in the monitoring list from the US are Chinese Yuan, German, Malaysian Ringgit, Singapore Dollar, South Korean Won, and Taiwan Dollar. 

And the two currencies that were previously on the list monitored by the US are India and Vietnam. One of the reasons why the appearance of this currency is on the list monitored by the US is because of market intervention. 

The regulator announced that the potential impact that could arise would endanger the US, so with a currency monitor, this could be safer.

For Now, US Treasury Finds no Currency Manipulation

Referring to all these market monitoring activities, Japan's official has announced and made a statement. It is stated that Japan will remain transparent in all its economic activities because this is believed to be the best way for global foreign exchange operations.

The Japanese Finance Minister, Shunichi Suzuki, also reported that the US does not see Japan's currency policy as problematic. Japan also remains on the US list because the US wants to learn about issues happening in other countries.

In addition, Malaysia is also included in the list of currencies to watch and has responded. It was stated that Ringgit did not carry out currency manipulation. But the problem is that Malaysia is a major trading partner of the US.

Commenting on Malaysia, the US treasury department said that this country carried out a two-way intervention in the currency market in recent years. The US also mentioned two-way intervention as "suspicious" because Malaysia has not released data.

"Malaysia does not publish data on its forex intervention. However, the authorities have conveyed the credibility to the treasury that net sales of forex in 4 quarters through June 2022 with a total value of $6.7 billion or around 1.7% of Malaysia's GDP," said treasury.

He also added that this intervention was carried out in a direction that led to strengthening the Malaysian currency. The report also reports that Malaysia's metrics have to deal directly with the International Monetary Fund, while Ringgit is still underperforming.

Malaysian authorities have also stated that they are eyeing a gradual and steady fiscal consolidation to contain public debt and rebuild fiscal buffers. They will continue to run the protection system to provide a good system and rebalance.

However, the latest data shows that the US treasury does not find any manipulation by major trading partners. But to make things safer, the 7 currencies, including the Japanese Yen and Malaysian Ringgit, are still included in the monitored list.

US Treasury Gives Some Signals About Acceptance of Some Currency Interventions

The US Treasury Department also signaled there would be intervention shortly by trading partners to boost the foreign exchange market. And in the same system, it is also stated that reporting for commercial reports is the main challenge.

Dollar strength is also mentioned as a threat for this period. Criticism from China regarding the rate set by the US in the exchange rate then covers the currency practices. External imbalances and market conditions that are reported to be unstable are the concerns.

The US treasury has not found any manipulation in the currency market with major trading partners. The US has also removed India and Vietnam from the list of monitored currencies, while Japan, China, Malaysia, Germany, Singapore, Korea, and Taiwan remain.