Malaysia's central bank has attributed the recent weakness in the ringgit to external factors, emphasizing that it does not accurately reflect the positive outlook of the Malaysian economy. The impact of changing U.S. interest-rate expectations, geopolitical concerns, and uncertainty surrounding China's economic future have weighed down not only the ringgit but also other regional currencies.
Analysis of Ringgit's Performance
Recent data shows that the ringgit has depreciated against the U.S. dollar, with USD/MYR rising by 0.2% to 4.7975. This increase translates to year-to-date gains of 4.4% and 12-month gains of 8.25%. However, despite these fluctuations, the Bank Negara Malaysia Governor, Abdul Rasheed Ghaffour, believes that the current level of the ringgit does not reflect Malaysia's promising economic prospects.
Anticipated Economic Growth
Ghaffour anticipates that Malaysia's economic growth in 2024 will be bolstered by improved external demand and strong domestic spending. Recent data released on Tuesday indicated an 8.7% increase in exports in January, breaking a streak of 10 consecutive months of decline. This positive shift suggests the beginning of a trade recovery.
Encouraging Signs for Malaysia
Aside from export improvements, tourism is on the path to recovery, and there is noticeable acceleration in investment momentum within Malaysia. These promising developments signal a potential upturn in the economy.
For more insights and analysis, stay tuned for updates and developments in Malaysia's economic landscape.
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