ID :
138965
Tue, 08/24/2010 - 11:32
Auther :
Shortlink :
https://oananews.org//node/138965
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RINGGIT REFLECTS M'YSIA ECONOMIC STRENGTH & UNDERLYING SENTIMENT
KUALA LUMPUR, Aug 24 (Bernama) -- The strengthening Ringgit reflects the underlying sentient and the country's robust growth in the first-half of the year, said Bank Negara (Central Bank) Governor Dr Zeti Akhtar Aziz.
Malaysia registered a superlative 9.5 per cent Gross Domestic Product (GDP)
growth in the first six-months but it contracted by 5.1 per cent in the same
period last year.
"We saw the Ringgit strengthening during this period (the growth in the
first-half) which reflected on domestic developments, the region and
developments arising in major financial markets," she said.
The Ringgit has risen to a 13-year high versus the US Dollar.
At 9.19am Tuesday, the Ringgit was trading at 3.1340/1370 against the greenback
compared with Monday's close of 3.1310/1330.
As Malaysia becomes more open, it was likely to be vunerable to external
developments, she said on the sideline of the Islamic Development Bank's RM1
billion Sukuk listing on Bursa Malaysia here Tuesday.
The significant volatility in the international financial market would continue
due to the uncertainties mainly arising from developments in advanced economies,
said Zeti.
However, given the fact that maintaining an orderly market was important, the
central bank would only intervene if there was any sudden or excessive
movements.
"We will be there to ensure orderly market conditions (but) we have no target
and we do not affect the underlying trend of the currency," said Zeti.
On other developments, she said the central bank did not see a need to make any
changes in the country's currency reserves composition.
"We remain very confortable with our currency composition. We do not see the
need for any changes based on the current enviroment. We believe it is important
to take a medium to longer-term outlook and not be distracted by the
developments that have taken place recently," the governor added.
-- BERNAMA
Malaysia registered a superlative 9.5 per cent Gross Domestic Product (GDP)
growth in the first six-months but it contracted by 5.1 per cent in the same
period last year.
"We saw the Ringgit strengthening during this period (the growth in the
first-half) which reflected on domestic developments, the region and
developments arising in major financial markets," she said.
The Ringgit has risen to a 13-year high versus the US Dollar.
At 9.19am Tuesday, the Ringgit was trading at 3.1340/1370 against the greenback
compared with Monday's close of 3.1310/1330.
As Malaysia becomes more open, it was likely to be vunerable to external
developments, she said on the sideline of the Islamic Development Bank's RM1
billion Sukuk listing on Bursa Malaysia here Tuesday.
The significant volatility in the international financial market would continue
due to the uncertainties mainly arising from developments in advanced economies,
said Zeti.
However, given the fact that maintaining an orderly market was important, the
central bank would only intervene if there was any sudden or excessive
movements.
"We will be there to ensure orderly market conditions (but) we have no target
and we do not affect the underlying trend of the currency," said Zeti.
On other developments, she said the central bank did not see a need to make any
changes in the country's currency reserves composition.
"We remain very confortable with our currency composition. We do not see the
need for any changes based on the current enviroment. We believe it is important
to take a medium to longer-term outlook and not be distracted by the
developments that have taken place recently," the governor added.
-- BERNAMA
