KUALA LUMPUR: Bank Negara Malaysia (BNM) said it will continue to closely monitor and ensure orderly financial market conditions amid external developments that have led to persistent strength in the US dollar against almost all currencies, including the ringgit.
However, the central bank said that “ringgit movements will continue to be market determined and the foreign exchange market continues to function and intermediate effectively”.
“Daily onshore forex transaction volume has been increasing throughout, reaching a current average of US$13.3 billion against US$11.3 billion in 2021, amid two-way flows.
“Bond market activity remains healthy, well supported by institutional investors and financial institutions,” it said in a statement.
The US dollar has strengthened significantly due to aggressive monetary policy tightening in the United States. The ringgit fell to 4.5670/5710 against the greenback at the opening today compared with 4.5660/5695 at yesterday’s close.
BNM governor Tan Sri Nor Shamsiah Mohd Yunus said “Malaysia remains an open economy. Rather than resorting to capital controls or re-pegging the ringgit, the policy priority now is to sustain economic growth in an environment of price stability and to further strengthen domestic economic fundamentals through structural reforms.
“This will provide a more enduring support for the ringgit,” she added. – Bernama
