KUALA LUMPUR: The ringgit appreciated by 4.6 per cent against the US dollar until July 21 this year.
Second Finance Minister Datuk Seri Johari Abdul Ghani said the rise was due to a number of factors, including the increase in Brent crude oil prices in the first six months of the year and the re-entry of foreign investor portfolios into Malaysia's financial markets.
He said the stronger ringgit has reduced costs for businesses with high import content, decreased the price of imported goods and further promoted domestic spending.
"The appreciation of the ringgit since the beginning of the year is attributed to increasingly-positive Malaysian economic indicators of higher export growth and higher Gross Domestic Product (GDP).
"Economic activities also helped boost investors' sentiments and further supported the consolidation of the ringgit’s value.
"In addition, market development measures introduced at the end of 2016 and April 2017 by the Financial Market Committee and Bank Negara Malaysia contributed to the stability of the ringgit, and also played a role in balancing supply and demand for foreign currencies in the local market.
"The impact of market development measures introduced at the end of 2016 can be seen in the diminishing of unpaid forward contract activities in offshore markets," he said in Dewan Rakyat today.
Johari was responding to a question from Datuk Seri Ahmad Hamzah (BN-Jasin) who wanted to know the impact of the ringgit's appreciation and the rise of crude oil prices on the Malaysian economy.