Middle East conflict: BNM ready to ensure orderly market condition

KUALA LUMPUR: Bank Negara Malaysia (BNM) stands ready to deploy the tools at its disposal to ensure the Malaysian financial markets remain orderly and continue to function efficiently in light of the current geopolitical situation.

"BNM continues to closely monitor conditions in the financial markets and will manage any risks arising from heightened financial market volatility," it said in a statement today following Prime Minister Datuk Seri Anwar Ibrahim's statement on the Middle East conflict on Sunday.

The central bank said it has engaged with financial market participants, including heads of treasury operations who concurred that any uncertainties would recede and stabilise once the geopolitical situation de-escalates.

It will also ensure sufficient liquidity and the orderly functioning of the foreign exchange market, supported by ongoing initiatives with government-linked companies, government-linked investment companies, corporates and exporters to further bring inflows and liquidity into the foreign exchange market.

Yesterday, Anwar, who is also the Finance Minister, said the government is closely monitoring the developments in the Middle East conflict and the financial market situation, including the potential impact on Malaysia.

"The government will act wisely to strengthen the country's economic and financial stability," he added.

-- BERNAMA