Malaysia does not have a target for the ringgit

[KUALA LUMPUR] The Malaysian central bank does not have a target for what level it wants the ringgit currency to be at, Governor Muhammad Ibrahim said on Thursday.

The ringgit is more stable following measures introduced by the central bank in December, Mr Muhammad said, adding that he expects to see more dollars available in the domestic market in coming months in the wake of those measures.

The central bank is looking at measures to allow smaller and medium enterprises to hedge their exposure to foreign exchange volatility, he said.

Bank Negara Malaysia said it also looking at allowing businesses longer period for hedging to manage exposure to ringgit volatility and manage rising cost of doing business, he said.

The ringgit weakened 4.3 per cent against the US dollar in 2016. It touched a near 19-year low of 4.496 on Jan 4, but has strengthened about 1.5 per cent against the dollar so far this year.

REUTERS