Datuk Seri Amir Hamzah Azizan said the ringgit is expected to continue to strengthen this year, trading at RM4.50 against the US dollar by year-end, driven by the country’s positive economic performance.
Amir, who is Minister of Finance II said coordination between the ministry and Bank Negara Malaysia (BNM), as well as joint efforts between government-linked investment companies (GLCs) and government-linked companies (GLICs) will help to increase inflows into the foreign exchange market to strengthen the value of the ringgit.
“BNM is also always ready to intervene in the foreign exchange market to curb currency movements that are considered excessive. For example, BNM will sell US dollars from its reserves to curb the excessive weakness of the ringgit.
“Efforts made by the government are effective and there is no need to use instruments such as pegging the ringgit or shutting down the ringgit exchange as was done during the Asian Financial Crisis,” Amir said during the question and answer session in the Dewan Rakyat, today (Feb 29).
He said this in reply to a supplementary question from Lim Guan Eng (PH-Bagan) who wanted to know the government’s projection on the local currency’s recovery and the steps taken by BNM to strengthen the value of the ringgit.
