Good governance, stability, and investor confidence key to ringgit's seven year high, says PM


PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has welcomed the ringgit’s appreciation against the US dollar, which reached its strongest level in more than seven years on Monday (Jan 26).

"Alhamdulillah," he said briefly to reporters when asked about the currency's performance following the launch of the National Audit Department’s 120th anniversary celebration.

The ringgit opened at 3.9850/9950 against the greenback at 8am on Monday, strengthening from last Friday’s (Jan 23) close of 4.0045/0080.

The local unit last traded at a similar level on May 24, 2018, when it touched 3.9797.

The currency's rise followed improved risk appetite after Bank Negara maintained the Overnight Policy Rate (OPR) at 2.75% last Thursday, coupled with a weaker US dollar index.

Anwar, who is also Finance Minister, said the ringgit’s strong performance is now among the best in Asia.

He said it reflects the effectiveness of sound governance, political stability, and growing investor confidence in Malaysia’s economic direction. He attributed the outcome to the government’s efforts to ensure efficient administration and take firm action against corruption.

Economists noted that the ringgit has appreciated by nearly 11% since Anwar was sworn in as Prime Minister in November 2022, rising from around the 4.50 level.

Analysts suggest that the local unit remains supported by a sanguine outlook on the Malaysian economy, particularly through the implementation of national master plans and resilient domestic demand.

 

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