Ringgit's Fall Due To External Factors, Says Deputy Finance Minister

‎KUALA LUMPUR, Aug 1 (Bernama) -- The ringgit's current decline is due to external factors, including the fall in global oil prices and pressure from the US dollar. Deputy Finance Minister Chua Tee Yong said oil prices fell to below US$50 per barrel last September. "In respect of the ringgit, we need to understand that this is a phenomenon. The ringgit's exchange rate is not determined by us. "At the same time, if we look at China, its shares index has plunged up to 30 per cent within a short time period," he added. He said this after attending the Securities Commission's Hari Raya (Eid al-Fitr) gathering here Friday. The ringgit has declined by 8.4 per cent from the 3.4965 level recorded at the end of last year. Chua said the decline in the exchange rate was also being experienced by other countries such as Australia, with the percentage being higher than that of the ringgit. "This shows that (currencies globally) are at present feeling the impact of the drop in commodity prices, alongside the possibility of the United States raising its interest rates," he added. Although the government has no plans to peg the ringgit at RM3.80 to the greenback, he was confident that Bank Negara Malaysia (Malaysia's Central Bank), from the aspect of monetary policy, will provide the needed oversight to ensure any change in the exchange rate is orderly. (US$1 = RM3.82) Whether the ringgit will continue to fall or recover, said Chua, cannot be predicted at the moment, as oil prices which remain a key source of income for the country remain unpredictable. "I am confident that the fall in the ringgit will attract even more foreign investors and assist in respect of exports," he added. -- BERNAMA