US calls for more flexible currency regime in Malaysia
Business Times, Malaysia
US calls for more flexible currency regime in Malaysia
By RUPA DAMODARAN
February 24 2006
THE US would like to see greater exchange rate flexibility in Malaysia, US Treasury Under Secretary Timothy Adams said yesterday.
"A more flexible exchange rate is in Malaysia’s best interest, and it will also give this country important tools to better manage domestic demand and address inflation and other aspects of economic growth," he said.
He was addressing journalists at a media briefing in Kuala Lumpur.
"We compliment the Malaysian Government for making a switch to a different regime (to drop the fixed rate) on July 21 last year (and) there has been some flexibility but we would like to see more in the future," Adams said.
He called for increased US participation in the financial services industry in Malaysia.
Adams also said that there was keen interest to increase the number of US firms operating in Malaysia from 150 to about 350 but it was important for Malaysia to provide "appropriate protection" of their knowledge especially for those who keen to go into the biotechnology area.
On the Free Trade Area (FTA) initiative between the US and Malaysia, he said the FTA is only a vehicle for both countries to deepen their economic relations.
