KUALA LUMPUR: Bank Negara Malaysia (BNM) has dismissed concerns of the ringgit hitting RM5 against the US dollar, calling it unrealistic as such an event would mean that the country is in a crisis.
"We don't really see us heading anywhere in the direction of hitting RM5. These are just levels that we have in our head that we think that something bad is happening.
"Previously, when we went through ringgit levels from RM2.5 to RM3 to RM4, it is important to note that at the time we were in a crisis.
"But at the moment, we are definitely not in a crisis. So, there's no reason to be hung up over levels of ringgit," Assistant governor Adnan Zaylani Mohamad Zahid said in a panel session at the BNM Sasana Symposium 2023 here today.
He added that BNM remains confident in its ability to manage fluctuations in the currency and assured that the situation is under control.
Adnan Zaylani bantered that instead of hitting RM5, the ringgit may strengthen to RM4 against the US dollar if the uncertainty recovers quickly.
Nevertheless, he noted that we will continue to see fluctuations in the ringgit against the US dollar as the local note performance is driven by global developments.
He said this includes weak global growth outlook, risk off sentiment on recent crises such as banking, debt ceiling, as well as weaker-than-expected China economic data.
Adnan said despite fluctuations in the currency, the markets have shown resilience and are operating business as usual, with no particular concerning trend or speculative pressure that warrants worry.