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Ringgit Fall Due To Excessive Political Games: PM

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KUALA LUMPUR: Datuk Seri Najib Razak gave his assurance that the government will do all it can to stabilise the economy, as the ringgit’s value continued to slump against the US dollar.

The prime minister said the depreciation of the ringgit was due to several factors, including China’s devaluation of the yuan, which in turn has affected other Asean currencies, as well as the dramatic fall in prices for commodities which Malaysia was a major producer of, such as petrol, palm oil and rubber.

The ringgit, he said, had also been affected by expectations that the United States would raise interest rates, driving investors worldwide to convert their funds into US dollars; as well as excessive political games and speculation which has raised sentiments of uncertainty towards the country’s administration.

Najib said despite these external factors and internal challenges, including negative portrayals of the country’s economy by certain parties, economic growth remained stable at 4.9 per cent in the second quarter of the year, according to Bank Negara’s latest report.

“Malaysia has been shocked by the fall in the ringgit’s value compared to the American dollar.

“I give my assurance that the government will do all it can to handle this situation, in order to stabilise the country’s economy,” he said, on his blog at www.najibrazak.com.

The ringgit crossed the RM4 threshold against the dollar on Wednesday, trading at one of its lowest levels since the 1997 Asian financial crisis 17 years ago.-NST

 

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