Concerns that Malaysia’s external finances may worsen, as a result of continued intervention from the central bank after the ringgit weakened beyond 3.8 to the US dollar, have renewed fears that could lead to a sovereign rating downgrade.
BNP Paribas said the foreign exchange (forex) reserves depletion to prevent the ringgit from breaching the psychologically important RM3.81-a-dollar level was especially concerning, as it heightened the risk of balance of payment strains.
“Should Bank Negara continue down this path, negative pressure on the ringgit and the external balance sheet is set to escalate, raising the potential for a multi-notch sovereign rating downgrade,” it said in a note released yesterday.
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BNP Paribas said the foreign exchange (forex) reserves depletion to prevent the ringgit from breaching the psychologically important RM3.81-a-dollar level was especially concerning, as it heightened the risk of balance of payment strains.
“Should Bank Negara continue down this path, negative pressure on the ringgit and the external balance sheet is set to escalate, raising the potential for a multi-notch sovereign rating downgrade,” it said in a note released yesterday.
Click Here For Free Signals OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance About KLSE online Feel Free To Mail Us at : info@epicresearch.my
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