Malaysia waiting for ‘good news’ on US solving debt ceiling issue

The issue is expected to be resolved within the next few days


MALAYSIA is hoping for something good from the US after they solve their debt ceiling issue to strengthen the ringgit, Deputy Finance Minister I Datuk Seri Ahmad Maslan (picture) said. 

He said the government is waiting for the latest developments regarding the US debt ceiling issue, which is expected to be resolved within five to six days, before taking any action.

“US president Joe Biden said they will try to settle before June 6 which is few days away. 

“And we hoped when the issue being taken care of, the ringgit will not become as it is today. So, we wait for it in the next couple of days,” he said after briefing from the Malaysia Security Commission (SC) today. 

The US Congress is set to discuss the possibility of raising the debt ceiling today.

According to Ahmad, SC chairman Datuk Seri Dr Awang Adek Hussin said the investors and business key players holding onto the US dollar when stalemate about the debt ceiling existed in the US. 

“But when the debt ceiling can be improved, then the hold on against the US dollar will be decrease. 

“Demand will also slide down, which the foreign exchange between the ringgit and the US dollar will also decrease and the pressure on the ringgit also will be decrease,” Ahmad said.

The ringgit is currently valued at 4.6005/4.6045 against the US dollar yesterday, sliding from about 4.4 earlier this year.

The falling of ringgit has also caused the government to be criticised as Bank Negara Malaysia again raised their Overnight Policy Rate earlier this month.