Bank Negara recently said that the supply of and demand for foreign currencies became more balanced after the implementation of its measures.
Mr Stephen Innes, the head of trading (Asia Pacific) at OANDA, noted that the measures Bank Negara took benefitted Malaysia because it stopped “all the waves of currency speculation”.
“Clearly the Malaysian central bank remains vigilant and on guard for any unwanted speculation on the ringgit. But certainly, investors would have expected that Bank Negara Malaysia would have been more receptive to reintroducing the Malaysian ringgit to global markets via a highly regulated exchange.”
He also noted that allowing international investors access to more freely tradable and open markets would have been great for the Malaysian capital market, citing that international investors can easily hedge their ringgit exposures.
Channel News Asia