PETALING JAYA: Bank Negara announced several measures to increase the demand for the ringgit and reduce its volatility against the US dollar. Among the measures are that exporters are to convert 75% of their proceeds into ringgit effective Monday. Other measures to increase the demand for the ringgit include placing a cap on the amount that companies and individuals can invest locally or abroad in foreign currencies. “Companies and individuals tend to buy US dollar bonds or investment instruments sold by local banks by taking borrowings from local banks. Bank Negara also announced measures to help fund managers manage their portfolio of investments against the volatility of the US dollar-ringgit movement.

Source: The Star December 02, 2016 20:37 UTC