BNM: Managed float regime provides flexibility to face challenges

KUALA LUMPUR: Bank Negara Malaysia (BNM) said the managed float
regime for the ringgit exchange rate has provided the economy greater
flexibility to face the recent global economic and financial crisis.
The central bank said on Friday that July 22 marked the sixth year since the shift to this regime.
During the six-year period, it said the global economic and financial
landscape experienced exceptional developments which were the worst
global economic and financial crisis since the Second World War, and
extreme volatility in two-way capital flows.
“The exchange rate regime has accorded the economy with greater
flexibility in facing these challenges. As the global economy recovers,
the ringgit has strengthened in line with Malaysia’s stronger economic
fundamentals,” it said.
BNM said the gradual and orderly adjustments of the ringgit have
facilitated the corresponding changes to take place in the real economy.
It said that it would continue to focus on facilitating orderly
market conditions to ensure international financial transactions could
be carried out efficiently.
“Going forward, the managed float regime and the flexibility it
accords will also continue to facilitate the transformation of the
economy as we advance towards being a high-income nation,” it said.