Malaysia named central bank deputy governor Muhammad Ibrahim as successor to Governor Zeti Akhtar Aziz when she steps down at the end of the month after 16 years at the helm. The ringgit gained and stocks pared losses.

Muhammad has been appointed for a five-year term that starts May 1, Prime Minister Najib Razak said in a statement on Wednesday.

Zeti’s term at Bank Negara Malaysia is coming to an end at a time when investors are looking for signs of stability in a nation rocked by a political scandal and alleged financial irregularities at a state fund. She has kept monetary policy steady to aid domestic demand as Najib counts on consumers to support growth amid constraints in boosting government spending.

“Given that it’s an internal appointment, we should expect a continuation of
policy that’s been set by Zeti," said Sim Moh Siong, a foreign-exchange strategist at Bank of Singapore Ltd. "Overall this is a market-friendly appointment.”

The ringgit reversed a drop after news of the appointment, gaining 0.3 percent to 3.9145 per dollar as of 2:54 p.m. in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. The FTSE Bursa Malaysia KLCI Index slid 0.2 percent, paring losses of as much as 0.6 percent.

http://www.bloomberg.com/news/articles/2016-04-27/malaysia-names-zeti-s-deputy-as-new-central-bank-governor