KUALA LUMPUR, March 12 (Xinhua) -- Malaysia will continue market monitoring through its central bank to ensure that financial markets remain orderly and that the country's financial system remains resilient in facing global uncertainties, the finance ministry said Wednesday.
The ministry said in a reply published on the parliament's website that Bank Negara Malaysia (BNM) has implemented various comprehensive risk management frameworks to ensure the stability of the Malaysian ringgit and the resilience of the national financial system.
However, it noted movements in the ringgit continue to be determined by the market, and BNM does not target any specific level for the local currency.
Instead, it said that BNM focuses on ensuring that the ringgit is traded in an orderly manner.
"In this regard, BNM will continue to monitor domestic foreign exchange market conditions and stand ready to take appropriate measures if there are signs of disorderly currency movements," it said.
Meanwhile, the government and BNM have also taken coordinated and integrated measures to encourage capital inflows into the foreign exchange market, which in turn help stabilize the ringgit, said the ministry.
This includes encouraging government-linked companies and government-linked investment companies to repatriate overseas investment income and convert those earnings into ringgit more consistently. ■
