The recent fall in the value of the Malaysian ringgit has caused anxiety over the performance of the country's currency.
It not only fell against the US dollar, but depreciation was also witnessed against other currencies, especially neighboring Singapore, Indonesia and Thailand.
However, Bank Negara Malaysia (BNM) Governor Tan Sri Nor Shamsiah Mohd Yunus said it was reasonable for the ringgit to fluctuate from time to time under a flexible exchange rate.
This will allow the national economy to adapt to the global economic and financial shock due to the tightening of the Federal Reserve (Fed).
Reflecting on what happened last year, the ringgit fell 11.5% between late March and early November before rebounding 7.8% towards the end of the year with economic expansion of 8.7%.
In the meantime, Tan Sri Nor Samsiah also stated that the overnight policy rate (OPR) needs to be adjusted in line with the strengthening economy.
He said such measures are necessary to ensure that the broad macro policy is in line with the economic reality of the country.
Nevertheless, the central bank admitted that there are challenges facing the country even though the economy as a whole is still healthy.
