PETALING JAYA: Concerns that Malaysia’s external finances may worsen, as a result of continued intervention from the central bank after the ringgit weakened beyond 3.8 to the US dollar, have renewed fears that could lead to a sovereign rating downgrade.
BNP Paribas said the foreign exchange (forex) reserves depletion to prevent the ringgit from breaching the psychologically important RM3.81-a-dollar level was especially concerning, as it heightened the risk of balance of payment strains.
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