Malaysia Central Bank Governor Says Public Deserves Answers Over 1MDB

The central bank doesn’t say how much dollars it bought or sold in the foreign exchange market but maintains it intervenes only to smoothen volatilities without targeting any specific level of ringgit to the USA dollar.

The resolution to issues surrounding the debt-ridden state investment company will help bolster the currency, along with the timing of the Federal Reserve’s interest-rate increase, a recovery in commodity prices and stabilisation in China’s economy, Dr Zeti said in Kuala Lumpur yesterday (Sept 21).

“Historically, never once has one company been linked in such a way to the value of the Ringgit”, said 1MDB in a statement released to the media on Tuesday morning.

“1MDB is disappointed that Tan Sri Zeti appears to single out 1MDB for the current weakness of the ringgit”, said the statement.

1MDB pointed out that the Ringgit is just one of many currencies worldwide to have been hit by various factors, including slumping oil prices, and the ongoing Opposition-backed campaign to sensationalize ongoing investigations into the state fund has painted a negative perception of its role in causing the ringgit slump but the company can not be held responsible for the Malaysian currency’s decline.

The central bank has sought to distance itself from the controversy surrounding 1MDB and allegations against the premier. A subsequent investigation by the Malaysian Anti-Corruption Commission revealed about $700 million that found its way into Najib’s bank accounts was from political donations and not related to 1MDB – the accounts were closed in 2013.

She said Bank Negara Malaysia’s investigation into possible contraventions on approvals granted to 1MDB have been completed and the findings submitted to the Attorney General’s Chambers.

The fund has been dogged by controversy over its US$11 billion debt and alleged financial mismanagement. Najib’s press officer didn’t respond to a call and text message seeking comment on the report.

Zeti said worldwide regulators such as the Financial Action Task Force is focusing on money laundering that may be connected to financing terror. “In this day and age, it must be known that there is no…”

“They will come together to track down any irregular type of activities”.