The government should act immediately to save the Malaysian Ringgit

SHAH ALAM, 28 Aug: The move to interfere with the market to support the Malaysian Ringgit (RM) is one of the measures that can be taken to prevent the ringgit from continuing to drop.

The former Bank Negara Director, Dr Rosli Yaakob, however said that the move is difficult to realise because it needs high financial reserves.

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“I believe that BNM has taken the step but clearly the effort is not enough.

“Meanwhile BNM cannot use a huge capital because it is feared that they will not be able to defend themselves in the case of any unforeseen risks,” he told Selangor Kini.

Rosli said that the move could have taken place earlier when the value of the ringgit was not severely low.

“It is too late to save the value of the ringgit with this step. It has now fallen to over RM4, it is difficult to do,” he said.

He said with the depreciation of the ringgit, it should be able to provide value added exports with the move to reduce imports.

However, he said, this did not happen and proven by the financial projections that did not meet the target.

“The forecast made is 5 to 6 percent for the second quarter of 2015.

“However, the Malaysian economy grew moderately by 4.9 percent in the second quarter (Q2) of 2015 compared to 5.6 percent in the first quarter (Q1),” he said.

NS

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