KUALA LUMPUR – There will be no foreign exchange (Forex) risks from the Chinese Reminbi-Ringgit soft loan facility for the East Coast Railway Link (ECRL) as it will use a fixed exchange rate, said the Barisan Nasional’s Strategic Communications Director, Datuk Abdul Rahman Dahlan.
“There will be no exchange rate exposure risks for us, as at the point of the first draw-down, the Reminbi-Ringgit exchange rate for loan repayment purposes will be fixed for the remainder of its duration.
“This fixed rate will also apply for future draw-downs and repayment of the Reminbi denominated portion of the loan,” he said in a statement here, today.
Abdul Rahman also explained that this had the effect of denominating all loan repayments in Ringgit terms at a fixed Reminbi-Ringgit exchange rate, which eliminated the risk of exchange rate fluctuations. – BERNAMA