KUALA LUMPUR, Oct 3 — The weakening ringgit, which is at its lowest since 1998, was not a reflection of the state of the Malaysian economy, Bank Negara Malaysia Governor Tan Sri Nor Shamsiah Mohd Yunus said on Monday.
She said the growth in the economy was robust, the labour market healthy and the financial system resilient.
The Ringgit has lost 11.6 per cent against the dollar so far this year.
“Bank Negara Malaysia will ensure that our onshore foreign exchange market remains liquid, so businesses can be assured that all their foreign currency needs can be efficiently fulfilled,” Nor Shamsiah said in a speech.
The central bank’s policy priority for Malaysia was to sustain economic growth within an environment of price stability and further strengthen economic fundamentals, she said.
“This will provide more enduring support for the ringgit rather than resorting to capital controls or re-pegging,” she said, adding that pegging the Ringgit could create more harm to the economy.
— Reuters
