Business

Ringgit relatively stable compared to currencies of key trading partners: BNM

Reported financial crimes soared during pandemic as criminals exploited situation, says central bank governor

Updated 1 year ago · Published on 26 Jul 2022 4:51PM

Ringgit relatively stable compared to currencies of key trading partners: BNM
Bank Negara Malaysia governor Tan Sri Nor Shamsiah Mohd Yunus (centre) says the fight against financial crimes is one fought on multiple fronts and the chain is only as strong as the weakest link. – Bank Negara Malaysia pic, July 26, 2022

KUALA LUMPUR – The ringgit has remained relatively stable when compared with the currencies of Malaysia’s major trading partners, while the country’s nominal effective exchange rate registered a marginal decline of about 0.1%, said Bank Negara Malaysia (BNM) governor Tan Sri Nor Shamsiah Mohd Yunus.

She noted that the dollar index has increased by 11.5% this year, which is the highest in two decades, and that most regional currencies, including the ringgit, have devalued relative to the dollar.

“Malaysia’s economic recovery is well underway, and at the same time, the bank will continue to use tools at our disposal to ensure the movement of the ringgit is orderly (amid) aggressive monetary policy tightening (by the) US Federal Reserve,” she said in her keynote speech at the 12th International Conference on Financial Crime and Terrorism Financing (IFCTF) 2022, here today.

She also said it was essential for Malaysia to build its resistance to future crises in order to maximise the country’s full potential.

“We must address long-term vulnerabilities and strengthen our resilience against future shocks, while also attracting quality investment, increasing economic complexity, and creating quality jobs for Malaysia,” she added.

Meanwhile, on financial crime and terrorism financing, Nor Shamsiah said reported financial crimes during the pandemic increased significantly as criminals exploited the conditions created by the associated economic downturn.

“Financial crimes have a direct and important effect on our economic prospects, and we are now at a new frontier of compliance. The fight against financial crimes is one fought on multiple fronts and the chain is only as strong as the weakest link.

“Our success requires all parties, the private sector, regulators, law enforcement agencies and other government bodies, and consumers alike, to do their part and to adapt to these new threats, to transform themselves to deal with these challenges and to collaborate to safeguard the integrity of our country’s financial system,” she said.

Meanwhile, the two-day IFCTF 2022 focused on the crucial role of the financial sector in reshaping its defence and mitigation measures in the fight against financial crime and terrorism financing, especially in the age of Covid-19, when reliance on financial technology grows in tandem with the emergence of new digital and environmental crimes.

The conference is organised by the Asian Institute of Chartered Bankers and its Compliance Officers’ Networking Group, supported by BNM, the Securities Commission Malaysia and Labuan Financial Services Authority.

Themed “The New Frontier of Compliance: Adapt, Transform, Collaborate”, the conference gathered over 50 global financial leaders and industry experts from across Europe, the United States and Asia Pacific. – Bernama, July 26, 2022

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