Malaysia loses pounds 1.4bn bet
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.KUALA LUMPUR (AFP) - Bank Negara, the Malaysian central bank which yesterday announced foreign exchange losses of 5.7bn ringgit (pounds 1.43bn), came under pressure to stop betting on world currency markets and stick to its role managing the economy.
Bank Negara should focus on its rightful role of regulating monetary policy and keeping the economy on track, Malaysian banking officials said.
It was the second year such adventurism had gone awry. The bank lost 9.3bn ringgit in 1992 from currency operations.
Under the stewardship of Jaffar Hussein, the governor, the bank has built a formidable reputation as an aggressive speculator in international currency markets, mainly in London, New York and Paris, dealers said.
Forex dealers said Bank Negara's woes stemmed largely from the world currency crisis during the realignment of Europe's exchange rate mechanism.
The bank bought colossal amounts of sterling in the hope of making a killing on its strengthening. Instead, it broke through the floor with the realignment of the European Monetary System beginning in late 1992. Bank Negara officials maintained there was no mismanagement, deviation or breach of trust.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments