Bank Negara FX losses a 'bitter lesson, but helped overcome Asian financial crisis'

Kuala Lumpur

FORMER Bank Negara Malaysia (BNM) adviser and ex-second finance minister Nor Mohamed Yakcop - the individual believed to be largely responsible for the colossal foreign exchange (FX) losses suffered by the central bank in the early 1990s - contended that the "bitter lesson" from the sorry episode had a silver lining.

It helped Malaysia formulate policies to defend against currency speculators when the Asian financial crisis hit in the late 1990s, saving the nation billions of ringgit in losses and companies from going under.