Middle East conflict: BNM ‘stands ready to deploy the tools its disposal’

THE Bank Negara Malaysia (BNM) is prepared to ‘deploy the tools at its disposal to ensure the Malaysian financial markets remain orderly and continue to function efficiently’.

In a statement today, the central bank said its market operations will ensure sufficient liquidity and orderly functioning of the foreign exchange market.

“This is supported by the ongoing initiatives with GLCs, GLICs, corporates and exporters which continue unabated to further bring in flows and liquidity into the foreign exchange market,” it said.

This was in response to a statement by Prime Minister Datuk Seri Anwar Ibrahim yesterday in the aftermath of Iran launching hundreds of drones and missiles against Israel in response to an Israeli raid on the Iranian consulate in Syria two weeks ago.

Anwar said that the government was closely monitoring developments in the Middle East conflict and the financial market situation, including the potential impact on Malaysia.

“The government will act wisely to strengthen the country’s economic and financial stability. The government will also consider any factor that may affect Malaysians,” Anwar, who is also the Finance Minister, said in the statement posted on Facebook.

In response, BNM said it continued to closely monitor conditions in the financial markets and will manage any risks arising from heightened financial market volatility.

“BNM has engaged with financial market participants, including heads of treasury operations, who concur that any uncertainties would recede and stabilise once the geopolitical situation de-escalates,” it added. –TMR