KOTA BAHARU, Dec 14 (Bernama) — The government is conducting a comprehensive study on the ringgit’s depreciation, says International Trade and Industry Datuk Seri Mustapa Mohamed.
He said the study was jointly undertaken by his ministry, Bank Negara Malaysia, Ministry of Finance (MOF) and the Economic Planning Unit (EPU) of the Prime Minister’s Department to ascertain the impact of the falling ringgit on the economy.
“We have experts in the government, Bank Negara Malaysia, MOF and EPU who are carrying out studies to determine if the depreciating ringgit is good or bad and if it has a positive effect on the economy,” he told reporters after presenting prizes and BMW cars to winners of a contest organised by Bank Islam Malaysia here, Sunday.
Mustapa said as a trading nation, the depreciation of the ringgit would definitely have an effect and it was necessary for the study to determine its impact on imports, exports, inflation, manpower and others.
“Ups and down in trading is normal, nothing is constant in this world. Sometimes we make profits, sometimes we lose. Sometimes the ringgit is up and sometimes it is down as this is determined by market forces.
“In the past two days, it has depreciated and it will recover soon. This is normal but what we don’t want is a steep and sudden fall as it can have a negative effect,” he said, adding that the economy was still resilient.
Mustapa also said the question of pegging the ringgit against the US dollar did not arise as the move also has its positive and negative impact.
He said the study was jointly undertaken by his ministry, Bank Negara Malaysia, Ministry of Finance (MOF) and the Economic Planning Unit (EPU) of the Prime Minister’s Department to ascertain the impact of the falling ringgit on the economy.
“We have experts in the government, Bank Negara Malaysia, MOF and EPU who are carrying out studies to determine if the depreciating ringgit is good or bad and if it has a positive effect on the economy,” he told reporters after presenting prizes and BMW cars to winners of a contest organised by Bank Islam Malaysia here, Sunday.
Mustapa said as a trading nation, the depreciation of the ringgit would definitely have an effect and it was necessary for the study to determine its impact on imports, exports, inflation, manpower and others.
“Ups and down in trading is normal, nothing is constant in this world. Sometimes we make profits, sometimes we lose. Sometimes the ringgit is up and sometimes it is down as this is determined by market forces.
“In the past two days, it has depreciated and it will recover soon. This is normal but what we don’t want is a steep and sudden fall as it can have a negative effect,” he said, adding that the economy was still resilient.
Mustapa also said the question of pegging the ringgit against the US dollar did not arise as the move also has its positive and negative impact.
