Bank Negara stemming the decline of the ringgit

Dealers told StarBiz that the central bank had in a recent briefing with them reiterated its stand that the ringgit would not be pegged against the US dollar, and that its value would be determined largely by market forces. Bank Negara had, however, expressed its concern that the ringgit had weakened far beyond Malaysia

PETALING JAYA: As the downward pressure on the ringgit mounts, Bank Negara has adopted gentle suasion methods to stem the decline.

Senior executives of the central bank have had briefings with foreign exchange (forex) dealers from local and foreign financial institutions this week discouraging them from entering into transactions that result in selling the ringgit.