Bank Negara: Ringgit will remain exposed to periods of heightened volatility | Money
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KUALA LUMPUR, May 11 – The ringgit is expected to remain exposed to periods of heightened volatility as uncertainties remain over the dynamics of the global and domestic economic recovery, Bank Negara Malaysia Datuk Governor Nor Shamsiah Mohd Yunus said.
She said the local rating had depreciated 3.5% against the US dollar in the first quarter (Q1) of 2021, mainly due to the strengthening of the greenback, which also caused other currencies to weaken across the board. advanced and emerging markets.
This happened as part of the rebalancing of portfolio investments by global investors following the rise in yields on US Treasuries, driven by the anticipation of a stronger economic recovery in the United States and the higher inflation expectations.
“Since April 1, the ringgit has appreciated 1.0% against the US dollar (as of May 7) and this appreciation was in line with the weaker US dollar strength as US Treasury yields have risen. started to decline from their March peak, ”She said at a virtual press conference today to announce Malaysia’s GDP performance in the first quarter of 2021.
Ni Shamsiah noted that the increase in global oil prices in early April also provided some support to general investor sentiment.
Regarding the financing conditions, she said that the net financing of the private sector recorded an annual growth of 4.7% during the quarter under review, mainly supported by a growth of the total outstanding loans of 4.3%. (Q4 2020: 3.7%).
“Business loan disbursements and repayments remained above their average quarterly levels of 2017-2019.
“The demand for loans to households has also remained present in an environment of accommodating monetary policy and the implementation of various stimulus measures,” she added. – Bernama