KUALA LUMPUR - It is not the fault of 1Malaysia Development Bhd (1MDB), it is simply not true that the Ringgit’s depreciation of late was entirely caused by 1MDB debt issues”, says President and Group Executive Director, Arul Kanda.
He regretted that there are many parties have attributed the Ringgit’s slump in the value with 1MDB, saying, and “There is no correlation between the two."
"To say the weakening ringgit as a company, I think a bit too much," said Arul when asked whether financial problems 1MDB has put additional pressure on the local currency.
"If you look at this week and evaluate Ringgit fluctuations, and fluctuations in its value, and watch the news about 1MDB, you will find no correlation," he said.
Instead, he said, Ringgit heavily influenced by a sharp fall in oil prices and the devaluation of the Renminbi China that have an adverse impact on the local currency.
Arul said concerns over emerging markets also affects the emerging market currencies, depreciating the currency as the currency of Brazil, Norway and New Zealand.
The combination of falling crude oil prices, devaluation of the Chinese currency and rising US dollar led to a decline in Ringgit by