Malaysia launches measures to protect domestic currency

Illustrative photo. (Photo: ibtimes.co.uk)

Kuala Lumpur (VNA) – Malaysia’s central bank has announced measures to increase demands for the ringgit and bring down the vulnerability of the domestic currency against the US dollar.

Exporters will have to convert 75 percent of export revenues into ringgit from November 5, said Assistant Governor of the Malaysian Central Bank Adnan Zaylani on December 2.

At present, exporters are asked to transfer their money to Malaysia in three months after finishing all transactions and the foreign currency is allowed.

Therefore, most of exporters have a tendency to keep their money in USD in banks as the US currency value is more likely to increase in the long term, which has weakened the ringgit, according to the central bank, adding that the Malaysian currency has skidded 3.72 percent compared to the US dollar since the beginning of 2015.

Among other measures, the central bank has set a restriction of foreign currency amount that companies and residents might invest both at home and abroad, with a maximum of 50 million ringgit for organisations  and 1 million ringgit for individuals.-VNA