Singapore made the list because of its large current account surplus and net foreign currency purchases of at least US$17 billion in 2018, equivalent to 4.6 per cent of GDP, according to the Treasury.[SINGAPORE] The US Treasury added Singapore, Malaysia and Vietnam to a watchlist for currency manipulation, putting their foreign-exchange policies under scrutiny.
Being labelled a currency manipulator doesn't come with immediate penalties, but can rattle financial markets.Singapore should undertake reforms that will lower its high saving rate and boost low domestic consumption, while striving to ensure that its real exchange rate is in line with economic fundamentals, to help narrow its large and persistent external surpluses, the Treasury said in its report.
"The ringgit exchange rate is market-determined and is not relied upon for exports competitiveness," Bank Negara Malaysia said in a statement. Countries that meet two of the three criteria are placed on the watch list. China only met one of the criteria, but the Treasury said it's on the list because of its large trade surplus with the US.
Mr Kim Hwan, an economist at NH Investment & Securities in Seoul, said US-China trade tensions may have played a role in the Treasury's move.
Dedollarise. Hehe.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessTimes - 🏆 15. / 51 Read more »
Source: BusinessTimes - 🏆 15. / 51 Read more »