The Financial Markets Committee (FMC) said the continued strengthening of the ringgit will encourage greater interest in foreign currency exchange (forex) by corporates active in the global market.
In its meeting, it will continue to support sentiment against the ringgit while discussing the latest developments in the forex market for MYR.
The meeting further discussed the impact of ongoing concerted efforts to encourage more consistent inflows by government-linked companies and government-linked investment companies as well as greater engagement with Malaysian business corporations.
Since February 26, the ringgit was the only regional currency to strengthen against the US dollar and gained 0.6%.
Over the same period, the average daily forex volume was $17.6 billion compared to $15.5 billion in 2023.
FMC members noted higher forex conversion activity in regional markets driven by significant flows from coordinated efforts as well as US dollar sales opportunities by certain exporters.
The meeting was of the view that continuous concerted efforts can be maintained as the focus is on recurring investment income and export revenue.
Bank Negara also increased the promotion of foreign currency exchange activities by Malaysian corporates and businesses.
FMC chairman, Adnan Zaylani in his statement said the current level of the ringgit is still considered undervalued especially when Malaysia's economic fundamentals continue to be strong and the economic outlook is positive.
Bank Negara does not consider capital controls or restrictions as introduced during the Asian Financial Crisis taking into account the potential cost and impact on the economy.
