Malaysia’s central bank to intervene to stabilise ringgit over ‘excessive’ recent losses

The ringgit is trading near a seven-month low and has lost close to 6 per cent of its value against the US dollar this year, declining more than its peers in Southeast Asia

Earlier this month, Malaysia’s finance ministry said it would implement policies aimed at boosting fund inflows and foreign investment that can support the ringgit

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Malaysia’s central bank will intervene in the foreign exchange market to stabilise the ringgit currency. Photo: AP

Published: 7:00pm, 27 Jun 2023Updated: 7:08pm, 27 Jun 2023

Malaysia’s central bank said on Tuesday it will intervene in the foreign exchange market to stabilise the ringgit currency, citing what it called “excessive” recent losses.

The ringgit is trading near a seven-month low and has lost close to 6 per cent of its value against the US dollar this year, declining more than its peers in Southeast Asia.

Bank Negara Malaysia said the extent of the ringgit’s depreciation was not reflective of economic fundamentals, and that recent volatility was also disproportionately higher than historic movements.

“As per its statutory mandate, Bank Negara Malaysia will intervene in the foreign exchange market to stem currency movements that are deemed excessive,” the central bank’s Assistant Governor Adnan Zaylani said in a statement.

The Central Bank of Malaysia said it will step in to stabilise the ringgit. Photo: Reuters

The value of the ringgit will continue to remain market-determined, he added.