KUALA LUMPUR: Bank Negara Malaysia (BNM) today said foreign exchange (forex) risk exposures in the corporate and banking sectors are manageable as domestic market conditions remain orderly.
In its financial stability review for the first half of 2023, BNM said the ringgit continued to be primarily influenced by external developments.
However, forex risk exposures in the corporate and banking sectors remain manageable underpinned by banks' sizeable foreign currency liquid asset buffers and corporates' prudent forex risk management practices.
BNM explained that continued onshore forex market liquidity is enabling orderly adjustments to external developments and this will support businesses and market participants in managing their forex exposures and allocation of resources.
Despite continued heightened volatility in the global financial markets, domestic market conditions remain orderly with smooth intermediation of two-way flows in the bond and equity markets.
