KUALA LUMPUR (June 22): Bank Negara Malaysia said it would cooperate with the Royal Commission of Inquiry (RCI) on the latter's probe on the central bank's foreign exchange (forex) losses more than 25 years ago.

In a statement today, Bank Negara said it would provide information to the RCI as required by the law. Bank Negara said it welcomed the Government's move to form the RCI to independently investigate the forex incident.

"It is important to note that in any country, the legitimacy, integrity and credibility of the central bank is paramount in preserving public confidence in maintaining a sound financial system and a stable economy.

"Bank Negara Malaysia would like to assure the public and the financial market that we shall not be distracted from discharging our national duty in delivering our mandates. We shall be steadfast in safeguarding the nation's monetary and financial stability, as well as the smooth functioning of the payment systems," Bank Negara said.

Yesterday, Prime Minister Datuk Seri Najib Tun Razak said the Cabinet had agreed to form the RCI to investigate Bank Negara's forex losses in the 1980s and 1990s.

In a statement issued by the Prime Minister's Office, Najib said the RCI would enable a more comprehensive and thorough investigation to be undertaken on the matter.