Market shaken: A trader counts ringgit and US dollar notes at a money exchange outlet. The weaker ringgit triggered a sea of red in the country’s stock exchange, which was shaken by concerns about potential capital flight worth billions of ringgit.
PETALING JAYA: Selling pressure on the ringgit would intensify should Malaysian government bonds be removed from an important global bond index, with a potential capital exodus of almost RM20bil to RM30bil out of the domestic capital market.
Following the news flow on Malaysia’s potential disqualification from the World Government Bond Index (WGBI), the ringgit has already come under pressure as the local note weakened against major currencies yesterday.
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