Bank Negara Malaysia Strengthens Market Oversight to Maintain Financial Stability Amid Global Uncertainty
KUALA LUMPUR — Bank Negara Malaysia (BNM) will continue to ensure that the country’s financial markets remain orderly and resilient despite increasing global economic uncertainty, according to the Ministry of Finance (MOF).
The ministry said the central bank is actively monitoring market developments while implementing comprehensive risk management frameworks to safeguard the stability of the financial system and the value of the ringgit.
These measures are aimed at maintaining confidence in Malaysia’s financial markets as global economic conditions remain volatile due to geopolitical tensions and shifting economic trends.
No Fixed Target for Ringgit Exchange Rate
MOF explained that the ringgit’s value is determined by market forces and that BNM does not set any specific exchange rate target for the currency.
Instead, the central bank focuses on ensuring that the ringgit is traded in an orderly manner within the foreign exchange market.
BNM will continue to closely monitor domestic currency trading conditions and stands ready to take appropriate action if unusual or disorderly currency movements occur.
This policy approach allows the ringgit to reflect underlying market fundamentals while preventing excessive volatility that could disrupt financial stability.
Coordinated Efforts to Strengthen Currency Flows
The ministry also noted that the government and BNM have implemented coordinated measures to strengthen foreign exchange flows and support the ringgit.
One such initiative involves encouraging government-linked companies (GLCs) and government-linked investment companies (GLICs) to repatriate overseas investment income.
These funds are then converted into ringgit more consistently, increasing liquidity within the domestic currency market.
Such measures are expected to contribute to stronger demand for the ringgit and enhance its stability over time.
In addition, BNM introduced the Qualified Resident Investor (QRI) programme in July 2025 to support two-way investment flows in the foreign exchange market.
The programme aims to enhance market efficiency and strengthen Malaysia’s participation in global financial markets.
Ringgit Shows Positive Performance
MOF reported that the ringgit has shown encouraging performance in recent months.
As of March 1, 2026, the Malaysian currency had strengthened by 4.31 per cent to RM3.89 against the US dollar.
This appreciation places the ringgit among the stronger performing currencies in the region.
When measured against the nominal effective exchange rate (NEER), which reflects a weighted average of Malaysia’s major trading partners’ currencies such as the Singapore dollar, Chinese renminbi and US dollar, the ringgit also recorded notable gains.
The NEER rose by 6.1 per cent throughout 2025 and increased by a further 2.8 per cent as of mid-February 2026.
Resilient Financial System
The ministry emphasised that BNM’s proactive monitoring and risk management strategies are key to ensuring the resilience of Malaysia’s financial system.
Through continuous surveillance and coordinated policy measures, the central bank aims to maintain market stability while protecting the economy from external shocks.
MOF added that BNM will continue working closely with the government to ensure the financial system remains robust and capable of navigating global economic challenges while sustaining investor confidence in Malaysia’s economy.
-wilayah.com.my
