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Bank Negara rejects using ringgit to support exports
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(Reuters pic)KUALA LUMPUR : Malaysia’s central bank said strong growth and ongoing reforms would provide support for the ringgit, ruling out using the currency to support exports, which it said are determined by global demand.
“The ringgit has never been an instrument for export competitiveness” Bank Negara Malaysia said in a written response to questions on Friday.
Despite the ringgit’s gains, Malaysia has seen robust exports growth, with record shipments of manufactured goods in December.
Global demand plays “the bigger role” in driving exports instead of the ringgit, Bank Negara said, noting that it continues to “observe a stable conversion” of exporters’ foreign currency proceeds into the ringgit.
“Malaysia’s economy is expected to remain resilient,” Bank Negara said, citing domestic demand and investment activity, though there are external risks.