RECENTLY, Bank Negara Malaysia (BNM) announced it plans to intervene in the foreign exchange market to stabilise the ringgit in response to short-term fluctuations caused by the high United States Federal Fund Rate and concerns about China’s future economic performance.
While this announcement was expected due to the recent under-performance of the ringgit, it has been perceived by the general public as a long-term strategy reminiscent of the fixed exchange rate regime implemented in 1997 following the Asian Financial Crisis.
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