KUALA LUMPUR: Bank Negara Malaysia believes that the current level of the ringgit does not reflect the positive prospects of the Malaysian economy going forward, said its governor, Datuk Abdul Rasheed Ghaffour.
He said the recent performance of the ringgit, similar to other regional currencies, has been influenced by external factors.
“Some of these factors include market adjustment to changing US interest rate expectations, geopolitical concerns and uncertainty surrounding China’s economic prospects,” he said in a statement today.
Abdul Rasheed stressed that growth in 2024 will be driven by the improvement in external demand and strong domestic spending, and the latest IMF forecast is for global trade to improve from 0.4 per cent in 2023 to 3.3 per cent in 2024.
“For Malaysia, exports have shown steady improvements since the fourth quarter of 2023. In fact, the recently released January 2024 exports have turned positive (+8.7 per cent),” he said.
Abdul Rasheed said the tourism sector had recovered strongly, with tourist arrivals in 2024 expected to exceed the pre-pandemic levels of 26 million.
“Investment momentum has picked up with the implementation of approved projects both in the private and public sectors.
“Reflecting these positive developments and the Government’s commitment to implement structural reforms and the expected lowering of interest rates in advanced economies, most analysts are forecasting for the ringgit to appreciate this year,” he added.
At 5.15 pm, the ringgit stood at 4.7970/8015 against the greenback. –Bernama