"BNM In Effort To Stabilize Ringgit" - Deputy Governor


Bank Negara Malaysia (BNM) Deputy Governor Adnan Zaylani said they are considering further steps to support the ringgit.

BNM is currently looking at various other measures to ensure the ringgit remains stable. They are actively involved with several corporate companies to bring back foreign currency funds and convert them into ringgit.

He also said that some local companies that have foreign currency balances are encouraged to send them home and exchange them for ringgit. BNM very much welcomed the effort and gave approval.

Meanwhile, Bursa Malaysia Bhd Chairman Tan Sri Abdul Wahid Omar said at the same conference that exports in the local currency were still low compared to other currencies.

About 60% to 70% of export revenue is in ringgit, still not reaching the excellent target. Many exporters still prefer to keep their export proceeds in foreign currency.

The ringgit fell on February 20 to a 26-year low of 4,800 against the US dollar. The last time it was seen at that level was in 1998 during the height of the Asian financial crisis. However, the local note has risen significantly in recent months.

On May 20, BNM sought to pilot a rapid pre-approval framework for corporates to bring back foreign currency funds and allow them to reinvest abroad.

The effort is a great potential even though many companies think that bringing home the money will have to face high difficulties when going through the investment approval process.