Exchange Rate Not A Barometer Of Health For Malaysia S Economy Bnm Chief


 


The movement of the ringgit against the US dollar should not be the barometer for determining the health of Malaysia’s economy, said Bank Negara Malaysia (BNM) governor Nor Shamsiah Mohd Yunus.
She said the ringgit’s depreciation has been driven by the strong US dollar due to the US Federal Reserve’s (Fed) aggressive tightening of monetary policy, and this downtrend was in line with major and regional currencies.
“It does not mean that the Malaysian economy is weak and in a crisis.
“As such, it is too simplistic to use the exchange rate as a barometer for the health of the economy without looking at other indicators,” she told a press conference on the third quarter gross domestic product (GDP) results today.
Nor Shamsiah said year-to-date, the ringgit has depreciated by 11.2 percent against the greenback, in line with regional trends, adding that the performance of the ringgit also needs to be collectively assessed against the currencies of Malaysia’s major trade partners.
The ringgit’s nominal effective exchange rate or nominal effective exchange rate (NEER) registered a much smaller depreciation of 2.0 percent.
Bank Negara Malaysia governor Nor Shamsiah Mohd Yunus“Given the ongoing global risks and the projected path of US monetary policy, the strength of the US dollar is likely to persist for some time.
“As these external uncertainties recede, the ringgit should adjust to reflect the underlying fundamentals of the economy,” she said.
The central bank chief added that purposeful structural reforms would also shore up confidence in Malaysia’s growth prospects, which will eventually support a real appreciation in the exchange rate.
She noted that the GDP has been growing for four consecutive quarters since the third quarter of 2021, with the unemployment rate continuing to decline for 14 consecutive months to 3.6 percent in September, from 4.8 percent in July 2021.
The financial performance of corporations and businesses remained healthy and the public continues to spend, she noted, while indicators such as retail and car sales have exceeded pre-pandemic levels.
The banking system remains resilient and financing growth remains supportive of economic activity, she added.
“Clearly, Malaysia is not in an economic crisis. That said, we acknowledge there are still some parts of our economy that have yet to return to pre-pandemic conditions,” she said.
Impact of ringgit depreciation
Nor Shamsiah said the ringgit depreciation would impact the cost of imports, but assured that only 8.0 percent of imports are consumption goods.
The impact of the ringgit depreciation on inflation could be higher during the current period because of the prolonged environment of elevated costs, she added.
Exchange rate pass-through also tends to be stronger for directly imported fresh food items, such as beef, although these items have a relatively smaller weight in the consumer price index (CPI) basket, she said.
“In addition to the exchange rate, food prices are also affected by other more dominant global and domestic factors, such as raw materials, logistics, and labour costs.
“The recent moderation in global commodity prices has helped to ease input costs and offset the impact of exchange rate depreciation on food prices. This contributed to an easing momentum in food inflation in recent months,” she noted.
Nevertheless, she said as the cost environment remains uncertain, consumer prices could remain elevated despite the easing trend in global commodity prices.
External position remains manageable
The central bank chief said the depreciation of the ringgit versus the US dollar has led to a higher value of foreign currency assets, lending support to Malaysia’s external position.
She said the risks from foreign currency external debt are largely contained, as about 68 percent of debts are either subject to prudential safeguards or are on flexible terms.
“For instance, as of end-September 2022, onshore banks’ external debt accounted for only 7.7 percent of total funding. Banks have to comply with liquidity management prudential standards.
“Additionally, their sizeable foreign currency liquid assets are sufficient to cover up to 2.6 times of foreign currency external debt-at-risk that are more susceptible to withdrawal and rollover risk,” she said.
Malaysia’s foreign currency external assets remain sizeable and are sufficient to cover up to 2.1 times foreign currency external liabilities.
At present, 31.5 percent of corporate external debt is in the form of intragroup loans, which are generally on flexible and concessionary terms.
- Bernama


Artikel ini hanyalah simpanan cache dari url asal penulis yang berkebarangkalian sudah terlalu lama atau sudah dibuang :

http://malaysiansmustknowthetruth.blogspot.com/2022/11/exchange-rate-not-barometer-of-health.html

Kempen Promosi dan Iklan
Kami memerlukan jasa baik anda untuk menyokong kempen pengiklanan dalam website kami. Serba sedikit anda telah membantu kami untuk mengekalkan servis percuma aggregating ini kepada semua.

Anda juga boleh memberikan sumbangan anda kepada kami dengan menghubungi kami di sini
Mic Chief Unlike Mandela Anwar Was Jailed For A Crime

Mic Chief Unlike Mandela Anwar Was Jailed For A Crime

papar berkaitan - pada 7/11/2022 - jumlah : 148 hits
GE15 MIC president SA Vigneswaran has reminded Pakatan Harapan candidates and their supporters that the coalition s prime ministerial candidate in the 15th general election Anwar Ibrahim has been jailed for crimes He said Anwar s imprisonme...
3d Resources Supplies Chemical For Ready Mix Concrete Malaysia

3d Resources Supplies Chemical For Ready Mix Concrete Malaysia

papar berkaitan - pada 2/11/2022 - jumlah : 213 hits
How well versed are you when it comes to the importance and usage of chemicals in Malaysia s industries What sector makes products using chemical ingredients Why does Malaysia have a chemical supplier like 3D Resources For your knowledge Ma...
Postal Voting For Military Personnel Began On Nov 7 Says Defence Force Chief

Postal Voting For Military Personnel Began On Nov 7 Says Defence Force Chief

papar berkaitan - pada 13/11/2022 - jumlah : 121 hits
PETALING JAYA The voting process for army personnel who are registered postal voters began on Nov 7 after receiving the Postal Ballot Paper Priority Envelope issued by the Returning Officer for the electoral division Defence Force Chief Gen...
Yes Launches 5g Services In Ipoh Continuing Its 5g For All Mission For Malaysia

Yes Launches 5g Services In Ipoh Continuing Its 5g For All Mission For Malaysia

papar berkaitan - pada 5/11/2022 - jumlah : 182 hits
Bringing incredible 5G speeds and interconnectivity to the state further plans to expand the coverage area across Perak are currently underway Datuk Ahmad Zaki bin Zahid Chief Strategy Officer DNB Y Bhg Dato Rumaizi Bin Bahrin MD Daud Datuk...
Citing Caretaker Govt Zafrul Says Not Right Time For Change In Prasarana

Citing Caretaker Govt Zafrul Says Not Right Time For Change In Prasarana

papar berkaitan - pada 14/11/2022 - jumlah : 178 hits
GE15 When public criticism rained on insensitivity by Tajuddin Abdul Rahman after the LRT s worst accident on record last year it was Finance Minister Tengku Zafrul Abdul Aziz who axed the Umno leader as Prasarana chairperson Fast forward t...
Dr M Blame Muhyiddin Hamzah Azmin For Anwar Not Becoming Pm

Dr M Blame Muhyiddin Hamzah Azmin For Anwar Not Becoming Pm

papar berkaitan - pada 13/11/2022 - jumlah : 164 hits
Former prime minister Dr Mahathir Mohamad said it was not him who should be blamed for Anwar Ibrahim not becoming prime minister under the Pakatan Harapan administration Instead he blamed those from within the coalition who engineered the S...
Samsung All New Oled Tv Now Opens For Registration Of Interest From 7 November To 20 November 2022 In Malaysia

Samsung All New Oled Tv Now Opens For Registration Of Interest From 7 November To 20 November 2022 In Malaysia

papar berkaitan - pada 12/11/2022 - jumlah : 168 hits
Register now and be the first to know all about Samsung OLED TV the all new intelligent Smart TV with latest advancements in picture quality sound technology and design that delivers the most optimal viewing experience for all purposes from...
Shah Alam Voters Go For Candidates Not Party Says A Confident Afif

Shah Alam Voters Go For Candidates Not Party Says A Confident Afif

papar berkaitan - pada 6/11/2022 - jumlah : 141 hits
Afif Bahardin said he was not running away from Penang but returning to stand in his hometown Shah Alam PETALING JAYA The majority of voters in Shah Alam are fence sitters who go for the candidates and not out of allegiance to any political...
University Application For Foundation In Science Malaysia

University Application For Foundation In Science Malaysia

papar berkaitan - pada 17/11/2022 - jumlah : 190 hits
There are so many university application for foundation in science Malaysia There are so many universities that offer the foundation in science and it is not easy to get in Many parents and some people want to take courses in science becaus...
Fungi Wechat Yang Ramai Tak Tahu

Ziana Zain Duta Rasmi Csa Academy

Hospital Kuala Pilah

Ramadan Bazaars 2024 Exploring The Culinary Delights Of Selangor S Ramadan Bazaars

Saya Dan Rafizi Tiada Isu Peribadi Kata Puad

Hallway Wall Art Mockup For A Sophisticated Look

Doa Agar Amalan Diiterima Allah Sepanjang Bulan Ramadan

Patut Tak Boleh Daftar



5 Masalah Sosial Yang Akan Timbul Akibat Penggunaan Kereta Elektrik

Koleksi 15 Lagu Hari Raya Terbaru Yang Meriahkan Aidilfitri 2024 Bakal Evergreen Bak Lagu Lama

6 Pantang Larang Penting Kalau Nak Selamat di Sekolah Asrama

Info Dan Sinopsis Filem 19 Puasa Playboys Of Plastik Hitam Astro First

Casimir Zeglen Paderi Yang Mencipta Jaket Kalis Peluru


Data Analytics In Business Decisions

Lirik Lagu Berdamai Ghea Inderawani

Drama Sebiru Hujung Borneo

Iddah Bercerai Panduan Pengiraan Tempoh Iddah Untuk Wanita Bercerai

Tvet Tahfiz Mara Bidang Pengajian Syarat Kemasukan

Den Manjo Feat Eda Ezrin Adik Jando Abe Dudo Raya Chord