Ringgit impacted by exporters not repatriating earnings, says Rafizi

[superadmin]

PUTRAJAYA: The ringgit has been in a freefall this year, and is one of the worst performing Asian currencies against the US dollar year-to-date. A reason for the local currency’s performance is the reluctance of some Malaysian exporters to repatriate their earnings to Malaysia, economy minister Rafizi Ramli said today.

He said exporting companies are paid in US dollars but there are exporters who do not immediately exchange it for ringgit and bring it back to Malaysia. He added this was a “normal thing”.

“When that amount is big and continues [to grow], it will affect the ringgit,” he told the media at May 2023 consumer price index briefing today.

Bank Negara Malaysia (BNM) announced yesterday that in an effort to stabilise the ringgit, it would intervene in the foreign exchange (forex) market to stem excessive currency movements.

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