GEORGE TOWN: Bank Negara Malaysia's (BNM) explanation of the ringgit's slide is not convincing, former DAP leader Dr P. Ramasamy said.
Ramasamy also questioned why Prime Minister Datuk Seri Anwar Ibrahim was hiding behind BNM in explaining the devaluation of the ringgit.
The ringgit hit a 26-year low against the US dollar last week, at about RM4.80 to the US dollar — levels not seen since the 1997/98 Asian financial crisis.
"The governor of BNM Datuk Abdul Rasheed Ghaffour says the ringgit should not be traded below its value.
"But the question is why, despite the economic fundamentals, the ringgit is traded low to the extent it has a devastating effect on the economy and the low wage earners?
"Well, if the ringgit is traded below its value, what then is the problem?
"Anwar talks about foreign investors having confidence in the economy," he said in his latest Facebook posting today.
Earlier today, Rasheed said the ringgit was undervalued.
He said, given Malaysia's positive economic fundamentals and prospects, the ringgit ought to be traded higher.
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Ramasamy said, rather than saying that the ringgit is traded below its current value, Rasheed should state what its current value is, or alternatively what are the factors that are preventing the full appreciation of the ringgit.
He said BNM officials might be holding discussions with the stakeholders on the matter.
"But is this sufficient to arrest the decline of the ringgit?
"The earlier stand of the BNM was that external factors were behind the slide of the ringgit, basically echoing the stand of Anwar.
"Since Anwar's stand did little to convince the public, he has now left the BNM officials to explain the slide the ringgit. It is strange that Anwar, who often engages in philosophy, has left the currency devaluation question to the BNM.
"Unfortunately, the BNM officials are being instructed to do the 'dirty job' of elected representatives, including Anwar," he added.
Last Friday, Anwar said the ringgit currency's fall to a 26-year-lowwas concerning but a comprehensive view of the situation must be taken into account.
He said investments were high and inflation and unemployment were down, and Malaysia's growth could be sustained compared to its neighbours.
