Bank Negara taking action to encourage flows into forex market

MALAYSIA’S authorities and central financial institution are taking coordinated motion to additional enhance flows into the international change market to make sure the ringgit stays steady, Bank Negara Malaysia governor Abdul Rasheed Ghaffour mentioned on Wednesday (Mar 6).

The ringgit, which declined to a 26-year low final month, has weakened about 3 per cent this yr, although the central financial institution has mentioned the forex is undervalued and doesn’t mirror Malaysia’s constructive financial fundamentals.

Abdul Rasheed mentioned authorities had been working with state-linked corporations to encourage extra constant repatriation and conversion of their international funding earnings, and stepping up engagements with worldwide buyers.

“With the current ringgit undervaluation and ongoing and forthcoming investment opportunities, global investors stand to reap the benefits from participating in Malaysia’s growth prospects,” he mentioned, in accordance with the textual content of a speech at an occasion on Wednesday.

Malaysia’s financial system was projected to develop between 4-5 per cent in 2024, supported by sturdy home demand, Abdul Rasheed mentioned, including that enhancements within the international financial system and tech sector had been benefiting the nation’s exports. REUTERS