Roles and Functions of Bank Negara Malaysia (BNM)

Roles and Functions of Bank Negara Malaysia (BNM)
The roles of the Bank are supported by 39 departments/units in the Bank covering seven functional areas as follows:

1. Economics & Monetary Policy
Primarily provides good technical and research support on growth-related issues to enhance formulation of monetary and credit policies in promoting monetary stability and ensuring the availability of adequate credit to finance economic growth.

2. Investment and Operations
Manage domestic liquidity and exchange rates to ensure that monetary policy targets are achieved as well as managing external reserves to safeguard its value and optimise its returns. It also has the responsibility of providing advice and assistance to the Government in the area of debt and fund management and contributing to domestic financial market development.

3. Regulation
Promote financial sector stability through the progressive development of sustainable, robust and sound financial institutions and financial infrastructure, thus enabling a competitive local financial industry to be resilient against the changing future environment as well as leads initiatives to enhance access to financing. It also formulates and implements policies and strategies towards building and positioning Malaysia as a premier integrated Islamic Financial Centre and enhance the financial capability of consumers.

4. Payment Systems
Develop policies and strategies to promote reliable, secure and efficient clearing, settlement and payment systems in the country.

5. Supervision
Develop, enhance and implement an effective surveillance framework to ensure safety and soundness of financial institutions and to enforce sound practices in them.

6. Organisational Development
Spearhead the Bank's strategic management, organisational-performance management and programme management functions to drive its performance-improvement processes and strengthening the capacity building of the Bank. It also leads and drives human resources initiatives and other strategic activities to ensure that the overall Human Capital Management framework is implemented effectively.

7. Communications
The communications function has assumed increasing importance in response to the heightened demands of the various stakeholders, seeking greater transparency and disclosure.

Do get to know about Bank Negara Malaysia (BNM)!

Source: http://www.bnm.gov.my/

All About Bank Negara Malaysia (BNM)

All About Bank Negara Malaysia (BNM)
Bank Negara Malaysia (the Central Bank of Malaysia), is a statutory body which started operations on 26 January 1959. Bank Negara Malaysia is governed by the Central Bank of Malaysia Act 2009. The role of Bank Negara Malaysia is to promote monetary and financial stability. This is aimed at providing a conducive environment for the sustainable growth of the Malaysian economy.

Bank Negara Malaysia's monetary policy stance is to maintain price stability while remaining supportive of growth. Bank Negara Malaysia is also responsible for financial system stability. This is achieved by developing a sound, resilient, progressive and diversified financial sector which serves to support the sectors of the real economy. It also plays an important function in implementing initiatives to deepen and strengthen the financial markets, including the foreign exchange market.

Bank Negara Malaysia has played a significant developmental role in developing the financial system infrastructure in advancing the financial inclusion agenda. This is to ensure all economic sectors and segments of the society have access to financial services. In addition, Bank Negara Malaysia also oversees the nation's payment systems infrastructure which emphasize on the efficiency and security of the financial systems.

As the banker and adviser to the Government, Bank Negara Malaysia provides advice on macroeconomic policies and the management of public debt. Bank Negara Malaysia is also the sole authority in issuing the national currency and in managing the country's international reserves.

Do find out about the Roles and Functions of Bank Negara Malaysia (BNM)!

Source: http://www.bnm.gov.my/

Why Ringgit Falls Year 2015

Image source: www.malaysia-chronicle.com

Questions have been flying around on the falling of Ringgit in year 2015. What have caused Ringgit to fall? Could it be considered as the crisis of Ringgit? Could it be any worse? The implementation of 6% GST is not serving the country? To challenge the doubtful of falling Ringgit, discussions have been conducted around, infinitely, indefinitely and indirectly. For simplicity of reading for all readers, we shall disregard all of the complex numerical terms, which includes the percentage, ratio, forex and whatever value against whatever currency. Below points could possible reflect the falling of Ringgit:

1) Tumble of crude oil price (since June 2014)
Globally, the supply of oil exceeds the demand, causing the price of oil tumbles. Oil is one of Malaysia’s main exports, so that’s why!
Read more: http://themiddleground.sg/2015/07/10/ringgit-falling-not-good-news/

2) Falling forex reserve (since early 2015)
Fuelling speculation that Bank Negara Malaysia (BNM) is digging into the reserves to shore up Ringgit. The lower a country’s forex reserves, the less it is able to do to shore up a sinking currency. Economists say many Malaysians are also sending their money overseas because the falling value of the Ringgit.
Read more: http://www.themalaysianinsider.com/malaysia/article/heres-why-the-ringgit-rout-isnt-slowing-and-how-bad-things-could-get

3) Devaluation of China’s renminbi (since August 2015)
China, the world's second-largest economy after the U.S., devalued its currency in a bid to help exporters. The country is grappling with a softening economy and wild swings in the stock market. A weaker renminbi implies cheaper Chinese exports, making goods produced elsewhere in the region less competitive
Read more: http://www.cnbc.com/2015/09/16/why-chinas-yuan-may-be-set-for-15-devaluation.html

4) Political scandal of Malaysia’s 1MDB debts (since July 2015)
Relevant or irrelevant, the weakening of Ringgit could be caused by this scandal, indirectly. In July, the Wall Street Journal published a report alleging nearly $700 million flowed from the 1MDB fund to Prime Minister Najib Razak's personal bank account. Najib has repeatedly denied any wrongdoing. Singapore and Switzerland have both suspended bank accounts tied to 1MDB and in the U.S., media reports said the Federal Bureau of Investigation (FBI) is investigating as well
Read more: http://www.cnbc.com/2015/09/24/

Stop wondering! Start pondering! Please help Mr. Ringgit!