The Central Bank is acting on the low value of the ringgit with a more holistic approach, the Bank Negara Governor in a statement today said the local currency is really undervalued.
Given Malaysia’s positive economic fundamentals and prospects, the ringgit ought to be traded higher as such some of the immediate actions taken for now is to step up engagements with GLICs, GLCs, corporations and investors to encourage continuous inflows to the foreign exchange market.
This is the first such statement and actions officially announced by BNM since the currency became painfully low for the past couple of years. Two weeks back the local currency hit a 26 year low harking back to the years during the Asian Financial Crisis when the ringgit was traded at 4.80 before the then Prime Minister took drastic action by pegging the ringgit at 3.80.
It as also during that time Tun Mahathir sacked his Finance Minister Datuk Seri Anwar Ibrahim.
