THE country’s strong economic fundamentals and ongoing structural reforms are expected to continue supporting the ringgit despite geopolitical tensions in the Middle East, according to the governor of Bank Negara Malaysia.
Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour, in an exclusive interview with Bernama, said the country’s resilient financial sector and stable external position remain key factors underpinning confidence in the local currency.
He noted that global influences such as monetary policy decisions in advanced economies, geopolitical developments and conditions in international financial markets also play a role in shaping the ringgit’s movement.
However, he emphasised that domestic structural strengths remain central to sustaining the currency’s performance.
Equally important, he said, are reform initiatives introduced by the government and relevant authorities, which have helped strengthen investor sentiment towards Malaysia.
"Malaysia’s economic fundamentals are strong. (Therefore) by continuing efforts to implement structural reforms, we can maintain these foundations while further improving our growth prospects.
"This can provide continued strengthening support for the ringgit even in a scenario of global challenges," he said.
Malaysia’s gross domestic product is currently projected to expand between 4.5 and 4.7 per cent in 2026, compared with 5.2 per cent recorded in 2025.
Bank Negara Malaysia is expected to release its updated growth and inflation projections at the end of March.
The ringgit, which has shown signs of strengthening in recent sessions, opened higher today at 3.9340/9450 against the US dollar, compared with 3.9395/9465 at the close of trading yesterday, as traders focused on the announcement of the Overnight Policy Rate despite ongoing conflict in the Middle East.
The central bank has maintained the Overnight Policy Rate at 2.75 per cent.
While acknowledging that the ringgit’s movements are influenced by market conditions, Abdul Rasheed said Malaysia’s economic outlook would continue to support the currency.
He added that although a stronger ringgit benefits some groups more than others — and vice versa when the currency weakens — the exchange rate is ultimately determined by market forces, and the central bank does not target a specific level for the currency.
"We do not target a specific level and the ringgit is determined by the market. What is more important is ensuring that the ringgit can move in an orderly manner.
"This helps Malaysians as well as businesses plan their activities better, whether for investment, trading or travel, even when there are movements in the foreign exchange rate," he said. - March 6, 2026
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