Bank Negara ensuring markets do not price ringgit excessively

THURSDAY, NOVEMBER 3 KUALA LUMPUR- Bank Negara Malaysia Governor Muhammad Ibrahim to officiate the Launch of Ombudsman Scheme at 1500 (0700 GMT) KUALA LUMPUR- Second Finance Minister Johari Abdul Ghani to deliver keynote address at SCxSC Digital Finance Conference 2016 at 0900 (0100 GMT) PUTRAJAYA- Deputy Prime Minister Ahmad Zahid Hamidi attends Home Ministry Innovation Day and monthly gathering at 0845 (0045 GMT) KUALA LUMPUR- Communications and Multimedia Minister Salleh Said Keruak launches Kuala Lumpur International Youth Discourse 2016 at 1030 (0230 GMT)

KUALA LUMPUR: Bank Negara Malaysia (BNM) is taking measures to ensure the markets do not price ringgit excessively and out of sync, while providing the necessary liquidity in the foreign exchange market. 

Assistant Governor Adnan Zaylani said in a statement on Friday recent offshore market activities have brought on significant volatility and undue adverse influence on ringgit prices. 

“As the ringgit is a non-internationalised currency, prices should be fully determined by onshore financial market transactions that are be driven only by the fundamentals and genuine trade and investment activities in Malaysia,” he said.

Below is the statement by the Financial Markets Committee on Financial Market Stabilisation Measures:

With the surge in volatility, the ringgit foreign exchange market has become prone to extreme movements. 

“Recent offshore market activities have brought on significant volatility and undue adverse influence on ringgit prices. 

"As the ringgit is a non-internationalised currency, prices should be fully determined by onshore financial market transactions that are be driven only by the fundamentals and genuine trade and investment activities in Malaysia”, says Assistant Governor Adnan Zaylani.

Bank Negara Malaysia is taking measures to ensure the markets do not price ringgit excessively and out of sync, while providing the necessary liquidity in the foreign exchange market. 

The Central Bank, through the Financial Markets Committee (FMC), is also in close engagement with all market participants to update and monitor the market situation. 

The FMC thus would like to reiterate to market participants that Malaysian financial markets are open to all market participants to facilitate their financial market transactions and capital flows arising from the real economic sectors, trade and investment activities.