Efforts underway to strengthen the currency
- Malaysia’s central bank says the ringgit is undervalued
- Efforts being made to strengthen the currency
- Robust economic fundamentals and promising prospects
- Intensified engagement with government-linked companies and investors
- Ringgit weakened against the dollar in recent months
Malaysia’s central bank, Bank Negara Malaysia, has stated that the ringgit is currently undervalued. Governor Abdul Rasheed Ghaffour emphasized the need for the currency to be traded higher, given the country’s robust economic fundamentals and promising prospects. The bank has intensified its efforts to engage with government-linked investment companies, corporations, and investors to encourage continuous inflows to the foreign exchange market. The ringgit has weakened against the dollar in recent months, reaching its highest level since the Asian financial crisis in 1998. This is the second time Bank Negara has commented on the ringgit’s movement, with the initial statement attributing its weakness to external factors.
Factuality Level: 7
Factuality Justification: The article provides a straightforward report on the statement made by Malaysia’s central bank regarding the undervaluation of the ringgit. It includes relevant information about the currency’s performance, the central bank’s efforts to strengthen it, and previous comments made by the bank. There are no obvious signs of bias, sensationalism, or inaccuracies in the article.
Noise Level: 2
Noise Justification: The article provides relevant information about Malaysia’s central bank commenting on the undervaluation of the ringgit currency. It includes quotes from the Bank Negara Malaysia Governor and discusses recent movements in the dollar/ringgit pair. The article stays on topic and does not contain irrelevant or misleading information. It supports its claims with data on the currency’s performance. However, it lacks in-depth analysis of the long-term trends or consequences of the currency’s undervaluation, which prevents it from receiving a higher rating.
Financial Relevance: Yes
Financial Markets Impacted: Foreign exchange market
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the undervaluation of the Malaysian ringgit and the efforts of Malaysia’s central bank to strengthen the currency. However, there is no mention of any extreme event or its impact.
Public Companies: Bank Negara Malaysia (N/A)
Key People: Abdul Rasheed Ghaffour (Governor of Bank Negara Malaysia)
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