Ringgit depreciates by 4.9% against USD in first quarter

By Poovenraj Kanagaraj

Bank Negara Malaysia (BNM) stated that the Ringgit has depreciated by 4.9 percent against the US dollar during the first quarter, following large non-resident portfolio outflows amounting to Rm 26.2 billion as global risk aversion intensified.

The Ringgit depreciated to its weakest today against the US dollar at 4.23.

Investors sentiments remained affected by the weakening and uncertain outlook to global growth.

According to the central bank, as a result of the ongoing risk aversion in global financial markets and demand for safe haven assets, Malaysia continued to experience non-resident portfolio outflows and the ringgit depreciated by 5.8 percent against the US dollar as of May 12.

In terms of financing conditions, net financing expanded at a sustained pace of 4.7 percent on an annual basis, supported by higher growth in outstanding loans.

“Growth in outstanding business loans increased, while outstanding household loan growth declined,” BNM said. Demand for both business and household loans also experienced a slowdown in comparison to the previous quarter.

Participating financial institutions have approved more than 20,000 applications amounting to RM 10 billion after the Special Relief Facility (SRF) was made available.

“Demand has been overwhelming and as a result, the earlier announced RM 5 billion SRF allocation that has been quickly taken up will directly benefit more than 9,000 SMEs across Malaysia and preserve more than 200,000 jobs,” BNM saids,

BNM has also upsized the SRF by another RM 5 billion to cater for all of the applications approved by the participating financial institutions.

Additionally, SMEs can also access existing financing schemes offered by the Government, financial institutions as well as from the remaining allocation for BNM’s Fund for SMEs.

In the first quarter, financial institutions have collectively disbursed RM 62 billion financing to SMEs, of which RM 48 billion for working capital purposes.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

HealthMetrics secures a total of RM20 million as part of Series A funding

Corporate healthcare benefits and wellness management platform, HealthMetrics secured a total of USD$ 5 million (approximately RM 20 million) as part of...

WSP 2.0 – More is needed for the hard-hit sectors

By Afifah Suhaimi, The newly targeted Wage Subsidy Programme 2.0 (WSP 2.0) introduced by the government under the Prihatin...

IJM Land’s latest residential project, Rimbun Jasmine receives overwhelming response

To help homebuyers in finding the right home and help achieve greater heights in life, IJM Land has launched Rimbun Jasmine, a...

AEON Credit posts PBT of RM76.5 million for Q2FYE21

AEON Credit Service (M) Berhad (“AEON Credit” or the “Company”) announced revenue for the second quarter ended 31 August 2020 (“Q2FYE21”) of...

AirAsia’s Santan set for rapid expansion in Malaysia

Santan, the world's first restaurant brand to offer inflight food on ground, is set for a rapid expansion in Malaysia with the...

Must read

PropTech and the pandemic

By Adrian Un, CEO, SkyBridge International Digitisation and PropTech (property technology) have been buzzwords in recent years, but following...

Empower local agility to unlock new business models post-Covid-19

By Scott Hensarling, Senior Client Partner and Tobjorn Karlsson, Senior Client Partner, Korn Ferry, 2020 has challenged many assumptions...

Don’t despair, targeted repayment assistance is available

By Azaddin Ngah Tasir, CEO of AKPK (Agensi Kaunseling & Pengurusan Kredit), As the automatic blanket moratorium comes to...

Digital transformation for the retail CIO: Connecting digital with physical

By Bruce Richards, Senior Industry Marketing Manager – Retail & Consumer Goods, Adobe, Digital is certainly disrupting retail. Today’s...