Abdul Rasheed Ghaffour: Defining moments - shaping the future story

What the desk is arguing

The desk believes that the Malaysian Ringgit is poised for appreciation, driven by the Central Bank of Malaysia's proactive monetary policy as articulated by Governor Ghaffour. His remarks underscore a commitment to economic stability, which could attract foreign capital inflows and strengthen the MYR against major currencies.

Supporting this view, the central bank's recent measures to enhance liquidity and support growth are expected to yield positive outcomes. The speech also hinted at potential adjustments in policy that could further reinforce the MYR's position, aligning with the desk's bullish sentiment.

Where it sits in our coverage

Our consensus target for the MYR is 1.075, with a range from 1.04 to 1.12. Notable firm targets include: - jpmorgan: 1.10 (Mar26) - bofa: 1.04 (Mar26)

This view aligns with jpmorgan, which shares a similar bullish outlook, while bofa presents a more cautious stance at the lower end of the range. The desk's call is positioned at the upper bound, indicating confidence in the MYR's potential strength.

How other firms see it

Firms like jpmorgan and citi are aligned with the desk's bullish perspective on the MYR, suggesting a consensus on the currency's potential appreciation. Conversely, bofa and hsbc express skepticism, advocating for a more cautious approach given the current economic uncertainties.

Key indicators to monitor include the USD/MYR exchange rate and the Bank Negara Malaysia's upcoming policy decisions, which could significantly influence market sentiment and currency movements.

What the calendar says

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