KUALA LUMPUR (April 10): The ringgit is expected to remain volatile until there is greater clarity on US tariff policies, Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour said on Thursday.

He noted, however, that the local currency has shown resilience, supported by Malaysia's strong economic fundamentals and positive growth outlook. He assured that the government will continue its efforts to bolster the ringgit’s stability.

“We have seen some volatility in the ringgit, and we can expect this to continue. But having said that, the ringgit, along with other regional currencies, has been pretty resilient. The government is also committed in terms of undertaking the structural reforms that will provide support for the ringgit,” he told reporters at the Asean Investment Conference 2025.

The governor, however, did not provide any forecast for the ringgit’s direction, in line with the BNM’s long-standing policy. Meanwhile, the central bank acknowledged that it is currently reviewing its growth projection for the gross domestic product, expected to expand between 4.5% and 5.5%.

“We will continue the coordinated measures introduced last year with government-linked investment companies (GLICs) and other government-linked entities to encourage consistent inflows into the foreign exchange market,” Abdul Rasheed said. “We will also continue engaging with exporters to encourage them to repatriate and convert their proceeds into ringgit.”

He added that BNM’s interventions aim to prevent excessive volatility and ensure orderly market conditions, which are crucial for businesses to make informed decisions and execute their strategies effectively.

So far this year, the ringgit has remained relatively stable against the US dollar, thanks to the steadily expanding economy, while the tariff rate proposed by the US against Malaysia is relatively lower compared to some neighbouring countries. However, Washington has since announced a 90-day moratorium on the imposition of the tariffs.

Additionally, coordinated efforts by BNM and the government to encourage repatriation and conversion of foreign earnings by corporations and institutional investors have helped stabilise the currency.

At the time of writing on Thursday, the ringgit has risen 0.58% to 4.4700 against the greenback. Year-to-date, it has declined by 0.04%.

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