Ringgit to recover once 1MDB issues resolved

KUALA LUMPUR: The ringgit will start to stabilise and recover when a combination of external and domestic issues are resolved.

Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz (pic) said a US rate hike, recovery in commodity prices and stronger Chinese growth together with the resolution of domestic political issues will help to stabilise the ringgit.

"We don't need any scandals, when we resolve all the scandals revolving around 1Malaysia Development Bhd, then we'll see the ringgit start to recover and stabilise," she said at a forum organised by the Performance Management and Delivery Unit (Pemandu) on Monday.

Zeti added that the markets were looking forward to the US rate hike but the window of opportunity has closed for now.

Since the beginning of the year to Sept 18, the ringgit has weakened  by 16.5% to the US dollar, according to data provided by Pemandu.

Zeti said the confluence of all these issue would help the ringgit to stabilise and recover.