No Plans To Peg The Ringgit
Bank Negara Malaysia (BNM) has no plans to peg the tumbling Ringgit despite continued volatility in the currency markets, said its governor Tan Sri Dr Zeti Akhtar Aziz said on Thursday.
“I want to categorically emphasise that we do not expect to peg the currency. The fact that we have a flexible exchange rate regime helps our country to adapt because if the exchange rate doesn’t adjust, then prices and demand has to adjust. I want to add that we are not implementing capital controls as well,” Zeti clarified at the recent press conference.
At this point in writing, the Ringgit has fallen to 4.1 against the US dollar.
Zeti, however, said that the depreciation was expected during periods of capital outflows and expects the volatility to remain until there is a certainty in policy directions from major economies.
“I believe once the external environment improves and once we solve all our domestic issues, then the currency will better reflect its fundamentals,” she said.
She said that Bank Negara will continue to ensure the orderly functioning of the market to avoid disruptions to trade and business activities.
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