BNM mon­i­tor­ing ring­git spec­u­la­tion within Malaysia

The Sun (Malaysia) - - SUNBIZ -

KUALA LUMPUR: Bank Ne­gara Malaysia (BNM) is con­tin­u­ously mon­i­tor­ing spec­u­la­tive ac­tiv­i­ties on the ring­git within Malaysia that can harm the coun­try’s fi­nan­cial mar­ket, says gov­er­nor Datuk Muham­mad Ibrahim (pix).

He re­it­er­ated that the cen­tral bank will take the nec­es­sary ac­tions un­der its frame­work should there be any of­fence against the law as such ac­tiv­i­ties might jeop­ar­dise the right pric­ing of the ring­git.

“We are against spec­u­la­tive ac­tiv­i­ties as these would not re­flect the ac­tual trade trans­ac­tion of the real econ­omy and it is crit­i­cal for us that the ring­git level re­flects the eco­nomic fun­da­men­tals.

“We are mon­i­tor­ing the sit­u­a­tion, the pric­ing mech­a­nism is ex­tremely im­por­tant,” he told re­porters af­ter launch­ing the Asian Bank­ing School Global Bank­ing Lead­ers Pro­gramme here yes­ter­day.

At the event, Muham­mad wit­nessed the sign­ing of a joint dec­la­ra­tion be­tween the Asian In­sti­tute of Char­tered Bankers and Malaysian bank­ing in­dus­try.

He was asked to comment on the re­ported at­tempts by em­ploy­ees of two of Aus­tralia’s largest banks, ANZ Bank and Mac­quarie Group, back in 2011 to ma­nip­u­late the bench­mark rate of the ring­git.

Muham­mad said the at­tempts oc­curred out­side Malaysia’s ju­ris­dic­tion and ac­tions were be­ing taken by reg­u­la­tors from other coun­tries.

“It did not hap­pen in Malaysia, it hap­pened out­side Malaysia. It oc­curred in 2011. Bank Ne­gara is mon­i­tor­ing all ac­tiv­i­ties in Malaysia, but not out­side Malaysia.

“So, if there is any wrong­do­ing or vi­o­la­tion against Bank Ne­gara’s laws or rules, we will take the nec­es­sary ac­tions,” he said.

It was re­ported that the Aus­tralian Com­pe­ti­tion and Con­sumer Com­mis­sion had launched le­gal ac­tion against the two banks, claim­ing the banks at­tempted to en­gage in a car­tel con­duct over the Malaysian cur­rency. – Ber­nama

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