Ringgit outperforms 9 regional currencies
ringgit was in first place compared to nine regional currencies since coordination measures among the government, Bank Negara Malaysia, government-linked investment companies (GLICs) and governmentlinked companies (GLCs) were implemented on Feb 26, 2024.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the local currency’s performance was based on data from Bank Negara’s Financial Markets Committee on March 1, 2024, which stated that there was an immediate impact on market trends and increased market interest in the ringgit.
“The government is committed to ensuring that the performance of the ringgit is at a better and stronger level,” he told the Dewan Negara yesterday.
He said Bank Negara continued to monitor the financial market and take necessary measures, including intervention in the foreign exchange market to curb excessive currency movements.
In addition, he said, Bank Negara was also monitoring the conversion of export revenue into ringgit by exporting companies and continued to encourage the use of the local currency for export settlement so that dependence on the US dollar could be reduced.
He said the Finance Ministry and Bank Negara had taken integrated and coordinated actions to bring money into the foreign exchange market.
“Among them are encouraging GLICs and GLCs to bring back foreign investment income and convert the income to the ringgit more consistently.”
Amir Hamzah said the government also controls overseas investment by private companies to reduce pressure on the ringgit, including by encouraging them to prioritise domestic investments and delaying new overseas investments.
He said that besides joint measures with Bank Negara , the government was also focusing on economic reform efforts to strengthen the economy and the ringgit.
“The government has introduced the Madani Economic Framework, with the main pillar being to restructure the economy to emerge as a leader in Asia.
“The Madani economy focuses on ensuring Malaysia is a competitive investment destination.”