BNM: We’ll ensure financial markets remain orderly and function efficiently

Following the statement by Prime Minister Datuk Seri Anwar Ibrahim on Sunday, Bank Negara Malaysia (BNM) has stated that it stands ready to deploy the tools at its disposal to ensure the Malaysian financial markets remain orderly and continue to function efficiently.

In a statement yesterday, BNM said its market operations will ensure sufficient liquidity and orderly functioning of the foreign exchange market. “This is supported by the ongoing initiatives with GLCs, GLICs, corporates and exporters which continue unabated to further bring in flows and liquidity into the foreign exchange market,” it said, adding that it will continue to closely monitor conditions in the financial markets and will manage any risks arising from heightened financial market volatility.

BNM has engaged with financial market participants, including heads of treasury operations, who concur that any uncertainties would recede and stabilise once the geopolitical situation de-escalates.

On Sunday, Anwar, who is also the finance minister, said the government is closely monitoring the developments in the Middle East conflict and the financial market situation, including the potential impact on Malaysia.

He added that the government will act wisely to strengthen the country’s economic and financial stability

Meanwhile, in a joint statement, the Securities Commission Malaysia and Bursa

Malaysia said that in light of current developments in the Middle East conflict and in furtherance to the statement by Anwar, they have increased their market monitoring and surveillance to ensure activities in the Malaysian capital market remain stable, fair and orderly.

“We would like to assure that our market fundamentals remain strong and our intermediaries are well capitalised. We also have a robust system in place to ensure continuous and effective clearing and settlement of trades. Additionally, we have the necessary controls in place to address potential sharp increase in volatility in the equity market,” they said.

They added that they will continue to assess the situation very closely to ensure the integrity of their capital market remains intact.