The coordinated initiatives by the government and BNM with GLCs and government-linked investment companies, as well as engagements with corporates and exporters, resulted in greater and more consistent flows into the foreign exchange (forex) market.

“The central bank is also deploying the tools at its disposal to ensure that domestic financial markets remain orderly and continue to function efficiently,” it said in a statement.

BNM said from the beginning of the year until May 15, the ringgit has depreciated by 2.4% against the US dollar, in line with the movements of other regional currencies.

The daily average forex (FX) trading volume increased to US$17.6 billion (RM82.36 billion) from Feb 26 – May 15, 2024 (Jan 2 – Feb 23, 2024: US$15 billion or RM70.20 billion) alongside a narrower bid-ask spread, indicating improved liquidity in the domestic FX market.

Meanwhile, BNM said credit growth to the private non-financial sector increased to 5.2% (Q4 2023: 4.8%), supported by higher growth in outstanding loans to businesses at 4.9% (Q4 2023: 3.7%) and households at 6.2% (Q4 2023: 5.7%).

“Meanwhile, outstanding corporate bonds grew at a more moderate pace at 3.2% (Q4 2023: 4.2%),” BNM said.

The central bank said the higher business loan growth was driven mainly by higher growth in investment-related loans.

“By sector, the stronger growth was supported by the construction and service sectors.

“For households, outstanding loan growth was higher across most loan purposes, reflecting continued demand for loans, particularly for the purchase of housing and cars,” it added.