Ringgit seen not to be significantly impacted

"...the depreciation of ringgit should be transitory. Furthermore, our interest rates are much higher compared to the advanced countries benchmark rate. “This could entice foreign funds to come in at some point as the US Fed is likely to keep the Fed Fund Rate at 0.25% until 2022, ” Afzanizam (pic) said.

PETALING JAYA: The move by S&P Global Ratings to revise its outlook on Malaysia’s long-term ratings to negative from stable will not significantly impact the ringgit and lead to capital outflows, thanks to the nation’s robust external position and sound long-term growth.

Economists agree that Malaysia’s macroeconomic fundamentals are still healthy and the Covid-19 pandemic curve has successfully been flatten, which would pave the way for foreign funds to invest into the country.

Bank Islam chief economist Mohd Afzanizam Abdul Rashid told StarBiz to an extent, the revision would affect the value of ringgit, especially when the risk-off mode has been quite prevalent these days following the sharp increase in new Covid-19 cases in the US.