The Bank of Thailand and the United States Department of the Treasury agreed to continue close consultations on macroeconomic and foreign exchange matters and reaffirmed their obligations under the International Monetary Fund Articles of Agreement to avoid manipulating exchange rates or the international monetary system for competitive advantage. The understanding covers the use of macroprudential and capital flow measures, which both sides agreed should not target exchange rates for competitive purposes, and extends to other government investment vehicles such as pension funds, which they agreed should not be used to target the exchange rate. Where foreign exchange market intervention is considered, it should be reserved for combating excess volatility and disorderly exchange rate movements, and treated as equally appropriate for addressing excessively volatile or disorderly depreciation or appreciation. Both parties also underscored transparency, committing to publicly disclose foreign exchange intervention operations at least semiannually with a quarterly lag, and to publish foreign exchange reserves data and forward positions monthly in line with the IMF’s Data Template on International Reserves and Foreign Currency Liquidity.
Bank of Thailand 2025-10-28
Bank of Thailand and US Treasury agree FX transparency commitments and reaffirm limits on intervention and exchange rate targeting
The Bank of Thailand and the United States Department of the Treasury have agreed to maintain close consultations on macroeconomic and foreign exchange matters, reaffirming their commitment to the International Monetary Fund Articles of Agreement. They emphasized that macroprudential and capital flow measures should not target exchange rates for competitive purposes and agreed on transparency in foreign exchange interventions and reserves data.