“Mahathir, of all people, is aware that the economic policies put in place by the Najib administration has set the country on a robust path and is likely to ‘cure’ the ringgit”
Currency traders seen previously dumping the ringgit are now picking it up, sparking a strong rebound of the local unit as it sheds speculative pressures.
The move, which brought some calm to the currency market, prompted Minister in the Prime Minister’s Department Dato’ Abdul Rahman Dahlan to point out how the ringgit had outperformed other regional currencies in April
“Foreign outflows have returned since April this year, out of which 10% of the money has come back into Malaysian government and central bank bonds.
“It is expected that more foreign outflows will return in the coming months, amid optimism by research houses, investment banks and fund managers such as BNP Paribas Investment Partners, Deutsche Bank, Western Asset Management and Fidelity International.
“They are of the view that Malaysia is on the right direction with the worst of foreign outflows behind us. What more, when the real economy has improved as shown in the first quarter GDP growth of 5.6%,” Rahman was quoted by the opposition leaning Free Malaysia today (FMT) as saying.
According to him, Malaysia’s central bank had taken appropriate steps to stymie trading in offshore markets, a move many an analyst agrees shielded the local unit from unnecessary speculation.
A source privy to the chatter in trading circles told TTF that the market had shifted its focus away from oil, lured by the Prime Minister’s pro-China policy.
According to the insider, the move by Najib was seen as a positive step towards rationalizing the Malaysian economy to meet global realities.
“That is why the Malaysian opposition is whacking the Prime Minister.
“Mahathir, of all people, is aware that the economic policies put in place by the Najib administration has set the country on a robust path and is likely to ‘cure’ the ringgit,” he said.