KUALA LUMPUR, Aug 15 — The ringgit strengthened by 5.1 per cent against the US dollar in the second quarter of 2025 (2Q 2025), primarily due to broad weakness in the greenback, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour.
He attributed this to expectations of more subdued US economic growth, rising uncertainties over its trade policies, and growing concerns over its fiscal sustainability.
“Furthermore, the ongoing coordinated efforts by the government and BNM, which include proactive engagements with corporates and investors, have encouraged healthy two-way flows in the domestic foreign exchange market observed during the quarter,” he said when announcing the 2Q 2025 gross domestic product (GDP) performance here today.
The ringgit’s nominal effective exchange rate (NEER) appreciated by 1.5 per cent against the currencies of Malaysia’s major trading partners in 2Q 2025.
Rasheed said the local currency exchange rate will continue to be influenced by external factors.
Malaysia's favourable economic prospects and domestic structural reforms, complemented by ongoing initiatives to encourage flows, will continue to support the ringgit.
“BNM remains committed to ensuring the orderly functioning of the domestic foreign exchange market,” he added.
Separately, Rashee said BNM will release an Exposure Draft on Open Finance soon and finalise the policy by next year, with the first phase to be rolled out in the interim, subject to industry and public readiness.
He said the central bank views tokenisation as a promising innovation in the financial sector with potential implications beyond capital markets.
“Our focus is on exploring the potential benefits and implications of tokenising real assets in financial services, particularly use cases that bring tangible benefits to the economy."
Rasheed said the discussion paper on asset tokenisation will outline BNM’s proposed collaborative approach, provide guidance on developing tokenisation use cases, and set out safeguards to support responsible exploration initiatives.
“Essentially, what is important is ensuring that tokenisation delivers real value to the economy, that the use cases meaningfully support economic activity with transparent and reliable information, and that there are adequate protections for users and customers."
Earlier this month, the governor announced plans to release an exposure draft and a discussion paper on asset tokenisation by year-end.
