Ringgit expected to be stronger against US Dollar in the last quarter of 2024

The Star

Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat on Wednesday (June 16) that the ringgit is expected to be stronger against the US dollar in the last quarter of 2024.  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00The RMB movement is influenced by various global and domestic factors,

00:05which also include the price of commodities, the sentiment of the financial market,

00:09and the rise of economic growth.

00:11The RMB performance experienced in recent times is also driven by global development,

00:17especially the strengthening of the US dollar and geopolitical tensions in the Middle East.

00:24The difference of 250 points between Malaysia's interest rate and the US

00:30also pushes investors to shift their exit capital from the domestic market

00:35to the market that provides higher opportunities.

00:38The strong US economy and the continuous inflationary pressure

00:42have forced investors' expectations that the US interest rate

00:47will remain high in the near future for a longer period of time.

00:52This dynamic directly puts pressure on the RMB performance.

00:57To manage the short-term pressure on the RMB,

01:01the government and the Bank of Malaysia have taken appropriate steps

01:05to intensify a more consistent flow to the domestic financial market.

01:10These steps include intensifying the return and exchange of foreign investment

01:16by companies related to the GLC and GLIC governments,

01:21which has resulted in a RMB performance.

01:25The value of the RMB performance surpasses all domestic currencies

01:30and is the only domestic currency that has grown by 1.4%

01:37compared to the US dollar since February 26, 2024.

01:42Meanwhile, most other currencies have shrunk compared to the US dollar.

01:48For example, the Indian rupee has shrunk by 0.8%,

01:53the Singapore dollar by 0.8%,

01:56the Chinese renminbi by 0.9%,

01:59the Thai baht by 1.8%,

02:02the Taiwan dollar by 2.4%,

02:05the Korean won by 3.9%,

02:08the Philippine peso by 4.9%,

02:11the Indonesian rupiah by 5.1%

02:14and the Japanese yen by 5.3%.

02:17In connection with this, the Bank of Malaysia will continue to take appropriate steps

02:22to ensure the stability of the financial markets and the domestic exchange markets.

02:27These steps include the operation of intervention to curb the movement of excess money.

02:33In addition, the Bank of Malaysia is also committed to conducting a balance sheet session

02:37and monitoring the exchange rate of exports to the ringgit to the exporting companies.

02:42The Bank of Malaysia will continue to make efforts to increase the use of local currencies

02:47in the settlement of exports to reduce the dependence on US dollar currencies.

02:54In addition, Malaysia continues to record success in attracting foreign investors

02:59with the investment approved in the first quarter of this year.

03:03This development shows that investors are more confident in the development of the country's economy

03:08and the efforts made by the government.

03:11The flow of foreign investment and funds is expected to continue

03:14and will continue to support the strengthening of the ringgit value.

03:18In the long term, the government remains committed and focused

03:21in the efforts to implement structural renewal policies and fiscal strengthening.

03:26This is expected to increase Malaysia's long-term attractiveness to foreign investors

03:32and will contribute to the strengthening of the ringgit value.

Category

Transcript

Recommended