KUALA LUMPUR, June 12 — Bank Negara Malaysia (BNM) is looking into various other measures and initiatives that could be undertaken to ensure the ringgit remains stable and supported, including engaging corporate companies to bring back their returns into the market.
Deputy Governor Adnan Zaylani Mohamad Zahid said the central bank has spoken to a number of corporations with foreign currency balances, who were encouraged to repatriate and convert their foreign currency.
"We will give them approval to invest abroad when the time comes. If they need to invest abroad and they have lined up their investments, then they can come to us to obtain approval.
"And we have given them the undertaking that BNM would facilitate that," he said during the 'Ringgit, Bonds, and Equity Markets' panel at the Bank Negara Malaysia Sasana Symposium 2024 today.
Adnan added that BNM has been working closely with government investment companies and foreign companies since February to repatriate foreign proceeds that have significantly benefitted Malaysia.
"If you look at where the ringgit's performance was when we started this and today, the local note has performed and appreciated against the US dollar by 1.2 per cent probably by now," he said.
Nevertheless, while the ringgit has strengthened against some currencies, it has weakened against some other currencies over the last two years since the US Federal Reserve (US Fed) started increasing the interest rate.
"Therefore, it has to be put into an overall context that drives the performance. Other factors were the current geopolitical issue that continues to create uncertainties and China's growth prospect," Adnan said.
Going forward, the deputy governor said there is an expectation for the US Fed to reduce interest rates this year, which would be more favourable towards ringgit.
— Bernama
