PUTRAJAYA - The government will be able to manage any strengthening of the ringgit, Prime Minister Datuk Seri Najib Razak said yesterday.
While a stronger ringgit would benefit the nation's economy, the government would continue to monitor the situation to see if the competitiveness of some industries might be affected.
It is feared that the strengthening of the ringgit will impact the country's exports.
"To date, generally, there has been no such problem," said Najib, who is also the finance minister.
Najib was commenting on the strengthening of the ringgit which is now at RM3.053 to the US dollar. It rose 2.8 per cent last month.
He said the strengthening of any currency reflects the strong basic fundamentals of a country.
"(For the ringgit) it is still at a manageable (level) and is based on the fundamentals. The most important thing is that the currency must be based on fundamentals...a strong fundamental," he added.
An economist, Manokaran Mottain, said recently that the strengthening of the ringgit by 2.8 per cent in December was responsible for preventing imported inflation.
High inflation occurs as result of a rise in food and commodity prices globally.
--New Straits Times