Govt, Bank Negara taking action to encourage flows into forex market
KUALA LUMPUR: The government and Bank Negara are undertaking coordinated action to further increase flows into the foreign exchange market, says Bank Negara governor Datuk Abdul Rasheed Ghaffour.

The governor said it has elevated its engagements with government-linked companies (GLC) and government-linked investment companies (GLIC) to encourage more consistent repatriation and conversion of their foreign investment income.

"We are also stepping up our engagements with international investors, such as yourselves, to showcase the positive prospects of Malaysia and that Malaysia remains highly attractive for investment and business," he said in his keynote speech at the third Fitch Ratings Islamic Finance Symposium 2024.

Reviewing the weakness in the domestic currency, which has been under pressure since 2022, he said the devaluation of the ringgit has been largely influenced by the aggressive policy rate adjustments by the US Federal Reserve, and reflects broader currency market dynamics.

"Given our positive growth prospects, the current ringgit level is undervalued.

"This is unwarranted, as the ringgit is also supported by sustained investor confidence, evidenced by the stable long-term government bond holdings by non-residents at around 22%, and recent foreign inflows into domestic equities," he added.

At 5pm, the ringgit was trading at 4.729/4.733 against the US dollar.
Forex,Bank Negara,Abdul Rasheed Ghaffour,ringgit,dollar
KUALA LUMPUR: The government and Bank Negara are undertaking coordinated action to further increase flows into the foreign exchange market, says Bank Negara governor Datuk Abdul Rasheed Ghaffour.