Bank Negara Malaysia (BNM) will step in the stabilise the weakening ringgit if the market is disruptive and disorderly,
said Governor Tan Sri Dr Zeti Akhtar Aziz.

She said what was important was to ensure orderly market conditions.

"Otherwise, it will be very much determine by the market," she said.

She was speaking to reporters after launching a book entitled, "Grow Your Business: Access to Financing for SMEs in Malaysia", in Kuala Lumpur today.

Zeti said the central bank would not focus on any specific level of exchange rate.

"We have liberalise the management of foreign exchange exposure and transactions so that businesses would be able to manage in an environment of greater volatility," she said.

She said exporters should not rely on exchange rates to gain competitive advantage, instead they must focus on other measures such as enhancing productivity and being innovative.

"From time to time, we will see the ringgit strengthening because of shifts in liquidity in global financial system," Zeti said.

She said strong financial institutions, well-developed financial markets which built up reserve level as well as greater flexibility on rules for management of foreign exchange exposure would help businesses adjust during periods of stress.

On whether BNM would raise interest rates, Zeti said the current rate was supportive of the economy as evidence by the strong domestic demand growth.-- Bernama