Friday, March 22

Orderly foreign exchange markets important — Zeti

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KUALA LUMPUR: Orderly foreign exchange market conditions are very important for a highly open economy like Malaysia, says Bank Negara Malaysia governor, Tan Sri Dr Zeti Akhtar Aziz.

“Our foreign exchange market has been orderly,” Zeti said.

“When there is an extraordinary and exceptional development in the global financial system and economy, we can expect this increase in volatility,” she added.

On the use of gold standards, she said it had to be carefully studied.

It was reported that the gold rally had boosted its demand as an alternative to currencies, on the back of speculation that, European governments may be struggling to pay off debts.

“There are many proposals coming forward. What is important is, the implications have to carefuly studied. We don’t want an overreaction as there are such extraordinary and exceptional developments,” she explained. — Bernama