Don't panic, Ringgit will bounce back: Treasury

Publish date: Mon, 19 Dec 2016, 07:01 PM

KUALA LUMPUR: The ringgit, which has weakened along with other emerging market currencies against the US dollar, has all the strength to bounce backsaid Second Finance Minister Datuk Johari Abdul Ghani.

"We should not panic," he said.

"We have the ecosystem to make it right, ensure political stability is intact and (continuously) apply the right policies to facilitate investors," he said when asked on the ringgit's decline to 4.4805 per US dollar earlier today.

There was no need for capital control or peg the ringgit as Malaysia is an open economy, he told reporters after witnessing the signing of strategic agreements between Amanah Raya Bhd and Kenedix Inc, Japan.

He said with all key factors in place, the ringgit would bounce back.

Asked on the fair value for the local currency, he said: "It depends at what point you come in, if you come at 3.30-level you would want the ringgit to be at 3.30 and if you come at 3.80-level you want it to be at that level."

The ringgit and other emerging currencies declined against the US dollar following the US Federal Reserve's interest rate hike on Wednesday last week.

It had hinted of more rate hikes in 2017.

Johari said the number of interest rate increase by the US depended on President-elect Donald Trump's policy and that Malaysia would have to wait and see.

"At the end of the day, currency fluctuation is part of the mechanism, and you need to adjust according to the supply and demand," he added. --Bernama

Discussions
Be the first to like this. Showing 7 of 7 comments

steveooikp

talk cock... just like before you pee, you need to unzip, pull out your banana and aim....
2nd finance minister .... not sure.... they need 3rd finance minister or not... if talk like tat can get salary... everyone in i3 like hng33, stockraider, rogers123, all can talk oso

2016-12-19 16:44

steveooikp

ok ok ... if I am the 3rd finance minister...
I will say... don't worry about who is MO1, he is already under our control. Our country is currently well managed by BEEND. Even with MO2, MO3 also can't defeat us. We as Malaysians must stand up and support our Gamen.

2016-12-19 17:16

steveooikp

hehe... finally got someone... ks55 - I will say damn BEEND gamen...

2016-12-19 17:24

SuperJohn9

I am no economist. In fact I have no knowledge of how the economy works. But I do have some common sense. My common sense tells me that the ringgit will not bounce. You will be lucky if it does not fall further. Here's why:

1. ruling politicians are all in it for the money and are corrupted. They really do not care about the rakyat.
2. with corruption comes money...lots of it. This money must be kept offshore in foreign currency. Guess which currency is most popular? USD!
3. with the declining ringgit and stronger USD the corrupted politicians must be rejoicing and cheering as they are now richer in ringgit terms.

I believe my 3 above assumptions are logical. Now tell me, which ruling politician will be willing to do anything to help the ringgit?

2016-12-21 14:57

Kays

The only way how to judge ringgit value is, what can Malaysia offer for 2017 & 2018 for the long-term foreign investors. If the only value to look into is our infrastructure that our government has been spending massively, then it wasn't enough to attract them.

The point to turn around is restructuring the government policy for foreign investment. But I guess there isn't an option for them.

2016-12-22 18:11

VenFx

That's the culture of Malaysia Government now, their 1st priority is to create wealth forcertain pparties .

The nation has been their fuel .
Values of the nation never of their concern. Sadly to say that.
Too much dirty tricks amongst those politician, ' U help me , I help u ' has been the uncommon sense within the interest party.

2016-12-24 00:16

yfchong

Fast fast goto 5.5 to 1 usd...cheers

2016-12-24 00:25

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