KUALA LUMPUR: Malaysia’s central bank said strong growth and ongoing reforms would provide support for the ringgit, ruling out using the currency to support exports, which it said are determined by global demand.
“The ringgit has never been an instrument for export competitiveness” Bank Negara Malaysia said in a written response to questions on Friday. While the central bank will continue to ensure “orderly conditions” in the foreign exhange market, “the ringgit is market-determined”.
The comments come as the currency has outperformed all Asian peers in 2026, rising 3%, after gaining around 10% last year. That is in stark contrast to the performance of neighboring Indonesia this month, where equities saw the worst rout since 1998 and the rupiah hit a record low versus the greenback.