BNM Acts To Ensure Markets Do Not Price Ringgit Excessively

KUALA LUMPUR, Nov 11 (Bernama) -- Bank Negara Malaysia (BNM) is taking measures to ensure the markets do not price the ringgit excessively and out of sync, while providing the necessary liquidity in the foreign exchange market. In a statement Friday, the central bank, through the Financial Markets Committee (FMC), said it was also in close engagement with all market participants to update and monitor the market situation. BNM (Malaysia's Central Bank) said with the surge in volatility, the ringgit foreign exchange market has become prone to extreme movements. The recent offshore market activities had brought on significant volatility and undue adverse influence on ringgit prices, it said. "The FMC thus would like to reiterate to market participants that Malaysian financial markets are open to all market participants to facilitate their financial market transactions and capital flows arising from the real economic sectors, trade and investment activities," it said. BNM Assistant Governor, Adnan Zaylani, said as the ringgit was a non-internationalised currency, prices should be fully determined by onshore financial market transactions that are be driven only by the fundamentals and genuine trade and investment activities in Malaysia. -- BERNAMA