Exporters’ reluctance to convert proceeds to ringgit causes imbalances

PETALING JAYA: Exporters’ reluctance to convert their foreign currency proceeds back to ringgit contributed to the “severe imbalances” in the domestic foreign exchange (forex) market.

This, Bank Negara said, was a factor in driving the sharp swings in the ringgit exchange rate. “As we navigate to implement measures to make the onshore forex market more efficient, open and transparent, we highly value exporters’ support in contributing to the stability of the financial market and the overall economy,” it said in a statement yesterday.