KUALA LUMPUR: The recent depreciation of the ringgit was largely driven by the strengthening of the United States dollar and the uncertainty of China’s economic growth, says the Finance Ministry.
"Since March 2022, the US central bank has raised interest rates aggressively by 525 basis points from 0.25% to a range of 5.25 to 5.50% compared to Malaysia’s overnight policy rate which was only raised by 125 basis points from 1.75 per cent to 3.00%. The ministry was responding to Datuk Siti Zailah Mohd Yusoff who asked for an explanation regarding the depreciation of the ringgit and the impact on the country.
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