In a recent twist of events, Malaysia’s central bank, Bank Negara Malaysia (BNM), has raised concerns over Google’s inaccurate reporting of the ringgit’s exchange rate against the dollar. The bank stated that Google had misquoted the ringgit’s value, undervaluing Malaysia’s currency. This marks the second instance of such misreporting, prompting BNM to seek an explanation from the tech giant.
The ringgit, which hit a 26-year low last month, has experienced a 2.44% decline this year. Despite this, BNM maintains that the currency is undervalued and does not reflect Malaysia’s positive economic fundamentals.
BNM’s statement highlighted that Alphabet Inc’s Google had published inaccurate information on two occasions, including February 6. BNM expressed its intent to engage with Google to understand how these inaccuracies occurred and to ensure corrective measures are taken promptly.
Google, however, was not immediately available for comment outside of U.S. business hours. The company’s policy disclaims any obligation to verify data provided by financial exchanges and content providers.
On the day in question, Google quoted the ringgit at 4.98 to the dollar, while official data indicated the currency’s weakest level at 4.7075. In contrast, BNM quoted the ringgit at 4.7015 at 9 a.m. and 4.7045 at 5 p.m. on the onshore interbank market. International market participants using LSEG data quoted a Friday close of 4.7020.
BNM Governor Abdul Rasheed Ghaffour recently announced coordinated actions between Malaysia’s government and the central bank to bolster foreign exchange market flows, aiming to maintain the ringgit’s stability.
The misquoting of the ringgit’s exchange rate underscores the importance of accurate financial reporting. BNM’s actions demonstrate its commitment to ensuring transparency and reliability in Malaysia’s financial markets.
(Source: Forex Factory | Times of India | Republic World)
