BNM welcomes RCI probe into forex losses

PETALING JAYA: Bank Negara Malaysia (BNM) has welcomed the government’s decision to set up a Royal Commission of Inquiry (RCI) to independently investigate the foreign exchange (forex) losses in the 1980s and 1990s.
In a statement today, it said it hoped that this would put to rest the events that occurred over 25 years ago.
“The central bank will extend its full cooperation to the Commission in providing information as required by the law.
“It is important to note that in any country, the legitimacy, integrity and credibility of the central bank is paramount in preserving public confidence in maintaining a sound financial system and a stable economy,” it said.
BNM also assured the public and the financial market that the probe by the RCI would not distract it from discharging its national duty in delivering its mandates.
“We shall be steadfast in safeguarding the nation’s monetary and financial stability, as well as the smooth functioning of the payment systems,” it added.
The Prime Minister’s Office had, on Wednesday, announced that it would form an RCI to investigate the billions of ringgit in forex market losses by BNM, after receiving a report by the special task force that was formed to probe the scandal.
It said the task force had found that there was a prima facie case to be answered by the central bank for the losses, and that the formation of the RCI is in line with public interest, as it involved national reserves.
The task force also found that the losses suffered were greater than what was presented to the Cabinet and parliament, adding that there were elements of concealing facts of the actual losses with the aim of confusing the ministers and lawmakers.