© Reuters. FILE PHOTO: A common view of the Central Financial institution of Malaysia (Financial institution Negara Malaysia) in Kuala Lumpur, Malaysia, July 31, 2019. Image taken July 31, 2019. REUTERS/Lim Huey Teng/File Photograph
KUALA LUMPUR (Reuters) – The weakening Malaysian ringgit, which is at its lowest since 1998, was not a mirrored image of the state of the nation’s economic system, its central financial institution governor mentioned on Monday.
Financial institution Negara Governer Nor Shamsiah Mohd Yunus mentioned the expansion within the Malaysian economic system was sturdy, the labour market wholesome and the monetary system resilient.
The Ringgit has misplaced 11.6% towards the greenback up to now this 12 months.
“Financial institution Negara Malaysia will be sure that our onshore international change market stays liquid, so companies might be assured that every one their international forex wants might be effectively fulfilled,” she mentioned in a speech.
The central financial institution’s coverage precedence for Malaysia was to maintain financial development inside an setting of value stability and additional strengthen financial fundamentals, she mentioned.
“This may present extra enduring assist for the ringgit somewhat than resorting to capital controls or re-pegging,” she mentioned, including that pegging the Ringgit may create extra hurt to the economic system.
