Raising OPR to strengthen ringgit not a good move - Fahmi

21 Feb 2024 07:35pm
Communications Minister Fahmi Fadzil during a press conference at the ministry, today. - Photo by Bernama
Communications Minister Fahmi Fadzil during a press conference at the ministry, today. - Photo by Bernama

PUTRAJAYA - Raising the Overnight Policy Rate (OPR) to strengthen the ringgit is not a good move at present in view of its impact on the people, according to Communications Minister Fahmi Fadzil.

"I am aware that some have commented on it, but I don’t know if certain parties want Bank Negara Malaysia (BNM) to raise the OPR. I believe it is not something that will help the people at this time.

"Prime Minister (Datuk Seri Anwar Ibrahim) is concerned about the matter, and I don’t feel it is a good move at this time. Anyway, it is up to BNM to decide,” Fahmi, who is the unity government’s spokesperson, told a post-Cabinet meeting press conference at the Communications Ministry here today.

On whether Wednesday’s Cabinet meeting discussed the ringgit’s performance, he replied in the negative.

Fahmi said the explanation regarding the ringgit’s performance was provided by BNM governor Datuk Abdul Rasheed Ghaffour yesterday and Finance Minister II Datuk Seri Amir Hamzah Azizan recently.

In a statement yesterday, Abdul Rasheed said the current level of the ringgit does not reflect the positive prospects of the Malaysian economy going forward and that the currency’s recent performance, like other regional currencies, were impacted by external factors.

Meanwhile, asked on the recent resignations of three Armed Forces Fund Board (LTAT) senior officials, Fahmi said the Cabinet meeting did not discuss it.

"We have not received a notification on the latest status. However, I believe the Prime Minister and Defence Minister (Datuk Seri Mohamed Khaled Nordin) have looked into the matter, and any announcement will be made later,” he said.

LTAT has seen the resignation of its chief executive Datuk Ahmad Nazim Abd Rahman effective Jan 31, followed by that of chairman General (Rtd) Tan Sri Raja Mohamed Affandi Raja Mohamed Noor on Feb 8. It was reported on Feb 19 that senior director of strategy Dayana Rogayah Omar has also tendered her resignation. - BERNAMA

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