KUALA LUMPUR: The ringgit is moving in the right direction as it reflects the nation’s economic fundamentals and strong prospects, said Bank Negara Malaysia (BNM).
Governor Datuk Seri Abdul Rasheed Ghaffour said the recent spread in the ringgit’s performance indicates a recovery from the previous levels.
‘In terms of whether we have a comfortable level for ringgit, we don’t target a certain particular level for the ringgit as it is market-driven,’ he said at a press conference on the second-quarter 2024 (2Q 2024) gross domestic product (GDP) here, today.
In terms of the support for the ringgit moving forward, he said it is positive.
He noted that support for the ringgit comes from several factors, namely the United States (US) monetary policy, coordinated measures between the government and BNM, and Malaysia’s strong prospects.
On the ringgit’s performance recently, he said it has been appreciating of late, with financial market participants expecting imminent policy rate cuts from the US Federal Reserve
, which has softened the US dollar and alleviated pressure on regional currencies including the ringgit.
With these latest developments, the ringgit has appreciated by 3.1 per cent against the US dollar year-to-date as at Aug 31, 2024. On a nominal effective exchange rate (NEER) basis, the ringgit has also appreciated by 5.3 per cent.
He said the coordinated initiatives by the government and BNM with Government-Linked-Companies (GLCs) and Government-Linked Investment Companies (GLICs) alongside engagements with corporates, exporters, and investors continued to provide support to the ringgit.
‘These efforts have resulted in greater and more consistent flows into the foreign exchange market. The daily average foreign exchange (FX) trading volume has risen to US$18.0 billion from Feb 26, 2024, to Aug 13, 2024 (Jan 2 – Feb 23, 2024: US$15 billion).
Source:BERNAMA News Agency
