Zeti Says Ringgit Significantly Undervalued Amid Growth
- Policy makers have struggled to boost confidence in past year
- Global funds pulled $7.7 billion from Malaysian assets in 2015
Zeti Akhtar Aziz, governor of the Bank Negara Malaysia.
Photographer: Matthew Lloyd/BloombergThis article is for subscribers only.
The Malaysian ringgit remains "significantly undervalued" and risks to economic expansion are unlikely to materialize with exports still strong, central bank Governor Zeti Akhtar Aziz said.
The ringgit doesn’t reflect fundamentals with the nation’s current account in surplus, unemployment at about 3 percent and inflation within Malaysia’s long-term average, Zeti said in an interview in Kuwait City on Wednesday. The currency may recover when the U.S. Federal Reserve normalizes interest rates and as "domestic issues" in Malaysia are resolved, she said.