Friday 19 Apr 2024
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KUALA LUMPUR (Dec 1): Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said "there will be opportunity" for renminbi investment after the currency was included in the International Monetary Fund's (IMF) benchmark basket.

Yesterday, the IMF announced it added the renminbi or yuan as one of its special drawing rights (SDR) currencies.

Today, Zeti described the announcement as "a welcome development".

She said Bank Negara's renminbi reserve was at a "comfortable" level, but the central bank would make continuous assessment to ensure the amount held remained relevant.

"We will assess carefully, we already have renminbi at a level that we are comfortable with. But as the market grows in size, there will be opportunity for the (renminbi) investment," Zeti told reporters at the Iclif Leadership Energy Summit Asia 2015 here.

She was responding to a question on whether Bank Negara would increase its renminbi reserves following the IMF's announcement.

Reuters reported that the IMF admitted China's yuan into its benchmark currency basket on Monday, in a victory for Beijing's campaign for recognition as a global economic power.

The decision to add the yuan to the SDR basket alongside the dollar, euro, pound sterling and yen is an important milestone in China's integration into global finances and a nod to the progress it has made with reforms.

Today, Zeti also fielded questions on Bank Negara's investigation on 1Malaysia Development Bhd (1MDB).

On the progress of the 1MDB probe, Zeti said Bank Negara was not allowed to discuss the status of the investigation before the case is concluded.

"The investigation (by Bank Negara) has [been] completed. Now there is some progress in the actions that are being taken relating to some of the approvals that we have given them (1MDB), and that is in progress.

"I am not in liberty to discuss the status of the investigation until that is concluded," she said.

 

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