THE ringgit ended the fourth quarter of 2022 (Q4 2022) stronger by 5.3% against the US dollar, buoyed by the encouraging global developments and greater domestic political certainty with the formation of the new government in November, Bank Negara Malaysia said.

In a statement today, the central bank said the local note’s performance was also in line with other regional currencies, as market expectations for smaller interest rate increases by the Federal Reserve amid indications of slowing inflation in the US eased interest in the greenback.

“Global investor sentiments on the ringgit and regional currencies have also been somewhat lifted by the reopening of China’s economy and its expected positive economic spillovers to the region,” it said.

Bank Negara said the ringgit also strengthened against several major trading partners, with the nominal effective exchange rate appreciating by 0.4% during the quarter.

“Moving forward, Bank Negara will continue to closely monitor global and domestic financial conditions, and ensure orderly financial market adjustments,” it said.

On financing conditions, the central bank said credit to the private non-financial sector stood at 4.7% in Q4 2022 against 5.3% in Q3 2022, amid the lower outstanding loan growth of 4.7% during the quarter under review versus 5.7% in Q3 2022.

It also said outstanding corporate bonds continued to grow by 4.6% in Q4 2022 from 4% in Q3 2022 while outstanding business loans grew by 3.3% in Q4 2022 as the sustained strong growth in loan repayments outpaced that of loan disbursements.

It noted that growth in loan disbursements was sustained at 12% in Q4 2022, particularly for working capital loans as firms continued to draw down on their existing credit facilities.

“For households, outstanding loan growth expanded by 5.5% amid the slower growth in loan disbursements and sustained growth in loan repayments,” it said. – Bernama, February 10, 2023.