Friday 29 Mar 2024
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KUALA LUMPUR (June 30): The Malaysian Association of Money Services Business said the retail exchange rate for the pound sterling was "moving closer" to the interbank rate, as licensed money changers adjusted to prevailing market conditions.
 
In a statement today, the association's president Ramasamy K Veeran said price adjustments to the pound sterling could be seen in the Klang Valley, where transaction volume was high. Ramasamy said some licensed money changers were selling the pound sterling at between 5.57 and 5.60 against the ringgit today.

Bloomberg data showed the ringgit weakened to 5.4263 against the pound sterling as at 4:40 p.m. today. The exchange rate has been between 5.3834 and 5.4366 so far today.

Ramasamy said “as seen globally, the mechanism and speed of exchange rates to adjust to changes in the market conditions for the physical foreign currency market will normally differ from the interbank rate or mid-market rates that can be sourced online."
 
“For physical foreign currency notes, there are operations costs factored in such as holding and logistics costs. The supply of the British pound sterling which is sourced internationally is a major determinant of the retail exchange rate and with supplies being replenished daily, the retail exchange rate of the British pound sterling should normalise further,” he said.

Ramasamy was responding to a news report on pound sterling retail rates offered by licensed money changers. The spotlight on the pound sterling followed the UK's European Union exit (Brexit) decision.

Following the results of the UK's Brexit referendum, he said there was limited global supply of the pound sterling.
 
“We will continue to monitor the situation in the local currency exchange market and respond to consumer needs. The licensed money changers can facilitate consumers who have an immediate currency requirement by making special arrangements.  
 
"As the retail currency exchange business is highly competitive, consumers are advised to shop around to get the best deal," he said.

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