The Central Bank of Malaysia has implemented new measures to support the ringgit after it depreciated by more than 4% in June, becoming the worst-performing currency in Asia.
June 24, 2569 at 08.50:XNUMX a.m. Bloomberg News reported that The Central Bank of Malaysia (Bank Negara Malaysia: BNM) announced plans to enhance measures to support foreign currency inflows in order to stabilize the ringgit. Amid pressure from persistently high U.S. interest rates and domestic political uncertainty.
BNM stated in a statement on Wednesday that one of its key measures is to encourage businesses to bring more overseas earnings back into the country, as well as to accelerate the conversion of foreign currency earnings into ringgit in order to increase liquidity in the domestic foreign exchange market.
The central bank also expressed confidence that Malaysia's strong economic fundamentals will continue to be a key support for the ringgit in the long term. Following the announcement of the measures, the ringgit narrowed its losses and traded near 4.1423 ringgit per US dollar.
However, the ringgit continued to face significant pressure in June, weakening by 4.3% since the beginning of the month, making it the worst-performing Asian currency during that period.
Analysts believe the ringgit has been affected by expectations that the U.S. Federal Reserve (Fed) may further raise interest rates, leading to investment outflows from emerging market assets. At the same time, domestic political concerns have increased ahead of upcoming state elections, particularly in Johor, scheduled for July 11, 2569.
refer : bloomberg.com
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