KUALA LUMPUR, March 29 (NNN-Bernama) — Malaysian\u00a0ringgit experienced a period of sustained depreciation against the US dollar in 2022 amid\u00a0the US Federal Reserve raising its policy interest rate aggressively by 425 basis points to address inflation, said Bank Negara Malaysia (BNM).<\/p>\n\n\n\n
In its Annual Report 2022 released Wednesday, the central bank said the ringgit hovered close to levels last experienced during the 1997 Asian Financial Crisis, and there were even calls for the ringgit to be pegged to prevent it from falling further.<\/p>\n\n\n\n
The ringgit fell to a historic low of RM4.7465 against the US dollar on Nov 4, 2022, almost at the Jan 7, 1998 level of 4.8850.<\/p>\n\n\n\n
\u201cWhile small movements in the ringgit exchange rate are common, large fluctuations in the level can create lasting impact for businesses, households, and the economy. <\/p>\n\n\n\n
\u201cA depreciation in the ringgit hurts those who consume imported goods and services, and if sustained, can lead to a rise in the overall cost of living. At the same time, a weak ringgit could increase exporters\u2019 earnings,\u201d it said. <\/p>\n\n\n\n
However, BNM noted that despite the ringgit\u2019s sharp depreciation against the US dollar, Malaysia\u2019s nominal effective exchange rate (NEER) was relatively stable.<\/p>\n\n\n\n
This was because the currencies of key trading partners were similarly affected as the ringgit, and Malaysia\u2019s relative competitiveness remained unchanged at a negative 5.4 per cent in 2022. <\/p>\n\n\n\n
\u201cDespite a major external shock in the form of fast and sizeable adjustments of interest rates in the US which led to the rapid appreciation of the US dollar against most currencies, Malaysia\u2019s competitiveness was relatively unaffected. <\/p>\n\n\n\n
\u201cThe domestic economy remained on its recovery path, registering a growth rate of 8.7 per cent for the year,\u201d it added. <\/p>\n\n\n\n
Given Malaysia\u2019s flexible exchange rate regime, fluctuations in the ringgit should be expected to occur from time to time, said BNM, adding that since reaching a peak of RM4.7477 on Nov 4, 2022, the ringgit did rebound to reach RM4.2435 on Jan 30, 2023.<\/p>\n\n\n\n
The central bank said as challenges in the global economy continue to evolve, US dollar developments are likely to continue to be the main factor affecting the ringgit exchange rate. <\/p>\n\n\n\n
\u201cOur financial system has held up well throughout this period and continued to facilitate intermediation to support the broader economy. <\/p>\n\n\n\n
\u201cReflecting on the events of the year, the bank will continue to proactively monitor developments and ensure that our economy continues to be served by an exchange rate regime that supports our mandate to achieve monetary and financial stability conducive to the sustainable growth of Malaysia\u2019s economy,\u201d it added. <\/p>\n\n\n\n
— NNN-BERNAMA<\/p>\n","protected":false},"excerpt":{"rendered":"
KUALA LUMPUR, March 29 (NNN-Bernama) — Malaysian\u00a0ringgit experienced a period of sustained depreciation against the US dollar in 2022 amid\u00a0the US Federal Reserve raising its policy interest rate aggressively by 425 basis points to address inflation, said Bank Negara Malaysia (BNM). In its Annual Report 2022 released Wednesday, the central bank said the ringgit hovered […]<\/p>\n","protected":false},"author":30,"featured_media":216467,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[215,288,300,318],"tags":[],"_links":{"self":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/216466"}],"collection":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=216466"}],"version-history":[{"count":1,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/216466\/revisions"}],"predecessor-version":[{"id":216468,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/216466\/revisions\/216468"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/media\/216467"}],"wp:attachment":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=216466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=216466"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=216466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}