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Ringgit ends stronger against US dollar in 4Q22
The ringgit ended the fourth quarter of 2022 (4Q2022) stronger by 5.3 percent against the US dollar, buoyed by the encouraging global developments and greater domestic political certainty with the formation of the new government in November, says Bank Negara Malaysia.
In a statement today, the central bank said the local note's performance was also in line with other regional currencies, as market expectations for smaller interest rate increases by the United States (US) Federal Reserve amid indications of slowing inflation in the US eased interest in the greenback.
“Global investor sentiments on the ringgit and regional currencies have also been somewhat lifted by the reopening of China’s economy...
The ringgit ended the fourth quarter of 2022 (4Q2022) stronger by 5.3 percent against the US dollar, buoyed by the encouraging global developments and greater domestic political certainty with the formation of the new government in November, says Bank Negara Malaysia.
In a statement today, the central bank said the local note's performance was also in line with other regional currencies, as market expectations for smaller interest rate increases by the United States (US) Federal Reserve amid indications of slowing inflation in the US eased interest in the greenback.
“Global investor sentiments on the ringgit and regional currencies have also been somewhat lifted by the reopening of China’s economy and its expected positive economic spillovers to the region," it said.
Major trading partners
The central bank said the ringgit also strengthened against several major trading partners, with the nominal effective exchange rate (NEER) appreciating by 0.4 percent during the quarter.
“Moving forward, Bank Negara will continue to closely monitor global and domestic financial conditions, and ensure orderly financial market adjustments," it said.
On financing conditions, the central bank said credit to the private non-financial sector stood at 4.7 percent in 4Q2022 against 5.3 percent in 3Q2022, amidst the lower outstanding loan growth of 4.7 percent during the quarter under review versus 5.7 percent in 3Q2022.
Meanwhile, it said outstanding corporate bonds continued to grow by 4.6 percent in 4Q2022 from four percent in 3Q2022, while outstanding business loans grew by 3.3 percent in 4Q2022 as the sustained strong growth in loan repayments outpaced that of loan disbursements.
It noted that growth in loan disbursements was sustained at 12.0 percent in 4Q2022, particularly for working capital loans as firms continued to draw down on their existing credit facilities.
“For households, outstanding loan growth expanded by 5.5 percent amid the slower growth in loan disbursements and sustained growth in loan repayments," it said.
- Bernama
