Malaysia PM says ringgit’s fall to 26-year low ‘concerning’

MALAYSIAN Prime Minister Anwar Ibrahim mentioned the ringgit’s slide this week to its lowest stage for the reason that Asian monetary disaster is “concerning” and that the authorities are watching the forex’s fluctuations.

“We have assigned the central bank to monitor, but it is affecting all countries,” Anwar informed reporters on Friday (Feb 23). “Ideally, the ringgit should be under control.”

The native forex briefly slipped previous 4.8 in opposition to the greenback this week, the weakest stage since January 1998, the peak of the disaster that roiled Asian monetary markets.  

Sputtering progress in China, Malaysia’s largest buying and selling accomplice, has weighed on the export-reliant financial system. Economists have lowered their forecasts for 2024 gross home product progress to 4.3 per cent from 4.5 per cent, after final yr’s enlargement missed estimates.

Malaysia’s huge rate of interest hole with the US additionally dimmed the attract of its belongings, whereas considerations over political stability linger. 

The ringgit – rising Asia’s worst performer final yr – has slid virtually 4 per cent in 2024. It fell 0.1 per cent to 4.7782 as of 12.30pm in Kuala Lumpur, after strengthening within the earlier two days.

Bank Negara Malaysia Governor Abdul Rasheed Ghaffour mentioned on Tuesday that exterior components are hurting the ringgit and that its present stage doesn’t mirror “the positive prospects of the Malaysian economy going forward.”

The nation’s exports in January grew by 8.7 per cent year-on-year, ending 10 consecutive months of contraction. Anwar mentioned on Thursday that Malaysia’s authorised investments hit a file excessive final yr. BLOOMBERG