KUALA LUMPUR: The ringgit has stabilised since the Financial Markets Committee (FMC) introduced new initiatives in Dec last year, said Bank Negara Governor Datuk Seri Muhammad Ibrahim.
Speaking to the press at the Karnival Keawangan 2017, Muhammad said that additional measures might be implemented at the end of the six months from Dec, if there is a need for it.
"There are three things that I want to address. The first being that the measures we implemented on Dec 5th, 2016 resulted in the ringgit stabilising," he said.
"Secondly, if need be, we will introduce new measures, so we can basically strengthen that policy.
“And thirdly, we notice that speculative activity has reduced since then," he added.
When asked about when the market can expect to see this stabilisation, Muhammad said it should be within six months of the implementation of the new measures.
"It will take three to six months before we can see the stabilisation, but we have seen good progress so far.
"The new (additional) measures will only be introduced when it is appropriate to do so, but these new measures will not be a form of capital control, as this is not a fixing of the ringgit, but to stabilise the ringgit in making sure that people who want the dollar get the dollar, that people who want the ringgit get the ringgit, and to ensure that liquidity is always there in our market," he added.
The Governor stressed that the public at large should not be too fixated on what ideal ringgit levels should be.
"I must stress that we must not be fixated on any particular levels. It is very important… that once we have realigned the demand and supply, that the ringgit’s (value is) dictated by actual demand for the currency... and that is when the ringgit will stabilise," he said.
Together with Second Finance Minister Datuk Johari Abdul Ghani, Muhammad had earlier launched the inaugural three-day Karnival Keawangan 2017 at the Putra World Trade Centre (PWTC). The carnival features over 100 financial service providers, including agencies and associations.