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Ringgit strong due to positive sentiments on govt policies

PUTRAJAYA, 5 February 2018: Positive sentiments on government policies have strengthened the ringgit further, said Prime Minister Datuk Seri Najib Razak today.

Najib, who is also the Finance Minister, said, this was what the Securities Commission had told him recently, which resulted in strong inflow of foreign funds that bolstered the Malaysian currency.

"A steady inflow of international funds is resulted from strong confident in government policies that boost the ringgit. It is not due to stronger world oil prices alone.

"The Malaysian ringgit breaks the psychological barrier of 4.0 (against the greenback) and the best performing currency is the ringgit," he said at the monthly gathering of the Prime Minister's Department.

At 9am today, Bernama reported the ringgit stood at 3.8935/8965 against the greenback from Friday's close of 3.8850/8880.

Meanwhile, the ringgit traded higher against a basket of major currencies, except the Japanese yen.

It improved against the Singapore dollar to 2.9498/9532 from 2.9575/9618 and strengthened against the euro to 4.8490/8543 from Friday's close of 4.8508/8553 The ringgit rose against the British pound at 5.4968/5030 from 5.5229/5283, but depreciated against the yen to 3.5431/5468 from 3.5354/5387

The prime minister said international bodies had recognised Malaysia's achievements.

"The World Bank has revised its projection on Malaysia's growth three times," he added.

Najib said the World Economic Forum (WEF) had ranked Malaysia in the 13th spot in the 2018 Inclusive Development Index (IDI) for the emerging economies category.

"Under the same category, China ranks 26 and India, 62. In Asia, Malaysia ranks first place for inclusive development," he added.

The IDI is an annual assessment of 103 countries’ economic performance that measures how they perform on eleven dimensions of economic progress in addition to gross domestic product.

It has three pillars; growth and development; inclusion and; intergenerational equity – sustainable stewardship of natural and financial resources.

The IDI is reported to be WEF's initiative on the Future of Economic Progress, which aims to inform and enable sustained and inclusive economic progress through deepened public-private cooperation through thought leadership and analysis, strategic dialogue and concrete cooperation, including by accelerating social impact through corporate action.

Source: New Straits Times