Sunday 19 May 2024
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KUALA LUMPUR (April 15): Malaysia’s central bank said on Monday it will manage any risks from heightened financial market volatility amid escalating geopolitical conflict in the Middle East.

Bank Negara Malaysia (BNM) stands ready to deploy the tools to ensure the financial markets remain orderly and continue to function efficiently, the central bank said in a statement. BNM’s market operations will ensure sufficient liquidity and orderly functioning of the foreign exchange market, it noted.

“BNM has engaged with financial market participants, including heads of treasury operations, who concur that any uncertainties would recede and stabilise once the geopolitical situation de-escalates,” the central bank said.

The comment follows Prime Minister Datuk Seri Anwar Ibrahim’s statement on Sunday that the government is closely monitoring the developments and potential impact on Malaysia as Iran launched retaliatory strikes on Israel over the weekend.

The central bank also said that ongoing initiatives with government-linked companies, government-linked investment companies, corporates and exporters “which continue unabated to further bring in flows and liquidity into the foreign exchange market” will support its market operations.

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