“Explanation offered by Bank Negara on ringgit slide is not convincing enough”

Letter to editor

WHY is Prime Minister Datuk Seri Anwar Ibrahim hiding behind Bank Negara Malaysia (BNM) in explaining the devaluation of the ringgit?

The ringgit has hit a 26-year low mark against the greenback. The slide might even have edged the record low mark of RM4.885/US$ during the Asian Financial Crisis in 1998.

Coincidentally, Anwar was then the finance minister at the time.

Datuk Abdul Rasheed Ghaffour who is the central bank’s governor is saying that the ringgit should not be traded below its value.

Insert latest exchange rate

But the question is why despite the economic fundamentals, the ringgit is traded low to the extent it has devastating effect on the economy and the low wage earners.

Well, if the ringgit is traded below its value, what then is the problem? Anwar talks about foreign investors having confidence in the economy.

Rather than saying that the ringgit is traded below its current value, perhaps should have stated what its current value is or alternatively what are the factors that are preventing the full appreciation of the ringgit.

Datuk Abdul Rasheed Ghaffour (Pic credit: Datuk Abdul Rasheed Ghaffour)

Is it sufficient to arrest the decline of the ringgit by virtue of BNM officials holding discussions with the stakeholders alone?

The earlier stand of the BNM was that external factors were behind the slide of the ringgit, basically echoing the stand of Anwar.

Since Anwar’s stand did little to convince the public, he has now left the BNM officials to explain the slide the ringgit.

It strange that Anwar who often in engages in philosophy, has left the currency devaluation question to the BNM.

Unfortunately, the BNM officials are being instructed to do the “dirty job” of the elected representatives including Anwar. – Feb 27, 2024


Former DAP stalwart and Penang chief minister II Prof Ramasamy Palanisamy is chairman of the Urimai (United Rights of Malaysian Party) Interim Council.

The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.

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