RCI needed as forex scandal still hurting ringgit, say former BNM officials

Source: The Malay Mail Online

Bank Negara Malaysia — Picture by Yusof Mat Isa

KUALA LUMPUR, June 29 ― Repercussions from Bank Negara Malaysia’s foreign exchange over two decades ago remain until today, said two former officials in support of the Royal Commission of Inquiry (RCI) on the matter.

According to Utusan Malaysia, former BNM economic department senior manager Dr Rosli Yaakop and former assistant governor Datuk Abdul Murad Khalid both said the central bank would have more reserves to prop up the ringgit now were it not for the scandal that allegedly cost the bank US$10 billion in the 1990s.

Murad yesterday also asserted that the amount could have appreciated to RM100 billion today based on a 4-per cent annual interest rate.

“The impact from this scandal has been prolonged and can be felt until now, so it is critical that a RCI is formed. BNM had lost a chunk of its reserve due to the forex activity back then,” Rosli reportedly said. Read more

Forex scandal possibly cost Malaysia RM100b, ex-official claims

Source: The Malay Mail Online

Hasil laporan pasukan petugas khas yang dibentangkan hari ini mendapati wujudnya kes prima facie bagi kerugian BNM sekitar tahun 1980-an dan 1990-an. Gambar dipetik dari FMT News.

KUALA LUMPUR, June 28 — Malaysia’s foreign reserves could have been RM100 billion greater had Bank Negara Malaysia (BNM) not lost heavily in the currency market over two decades ago, according to Datuk Abdul Murad Khalid.

The former BNM assistant governor, whose allegations that BNM frittered away more than US$10 billion (RM42.8 billion) prompted renewed examination of the scandal this year, based this on the opportunity cost of losing the alleged amount then.

“We are losing RM4 billion in income annually because of the scandal. The total losses then were US$10 billion which is equivalent to about RM40 billion today.

“The money would have increased to US$ 26.6 billion or more than RM100 billion, if it had been kept in government savings, at a compound interest of four per cent annually,” he was quoted as saying. Read more