Excange Regulations of Malaysia The Exchange rate policy is an important component in the Malaysian FDI promoting framework and in general economic policy. In recent years, Malaysia has substantially opened-up its foreign exchange regime and can now be considered fairly liberal. Bank Negara does not officially peg the Ringgit to certain currencies and the currency floats. However, the bank does intervene in the foreign exchange market in order to avoid rapid fluctuations in coherence with its policy to maintain a stable value of the Ringgit. This is achieved by comparing the market value to an unknown trade-weighted basket of currencies (Bureau Of Economic Analysis 1993: 2). Bank Negara has been accused of depreciating the value of the Ringgit in order to promote exports. For instance, in 1993, the bank bought large amounts of US dollars causing the Ringit to depreciate (Cooke 1994: 3). As a result, in 1993 alone, the national bank declare...
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