Abstract:
The recent underperformance of the Ringgit and stock market has sparked concerns among the public, highlighting the limited understanding of monetary policy and the capital market. Bank Negara Malaysia (BNM) has indeed intervene our Ringgit performance since pegged our Ringgit RM3.80 to USD. Since its depegging in July 2005, BNM has practiced a managed float system for the Ringgit. This entails allowing market forces to determine the currency's value while strategically intervening to stabilize fluctuations as needed. As of June 15, Malaysia's international reserve stands at approximately USD 113 billion (RM 527 billion), a portion of which BNM utilizes to support the Ringgit. However, BNM typically aims to maintain the reserve above USD 100 billion as a rule of thumb.
