We didn’t cause ringgit drop, says 1MDB

Debt-ridden state investor 1Malaysia Development Bhd (1MDB) today said it should not be singled out as the cause for the ringgit's drop in value against the US dollar. The Finance Ministry-owned firm said it was "disappointed" with Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz's remarks at a forum yesterday, where she was reported as saying that the ringgit would start recovering once issues surrounding 1MDB were resolved. 1MDB said in a statement today that it should not be singled out for the current weakness of the ringgit as many other currencies had also dropped in value, "mainly due to the abrupt fall in oil prices, expectations of rising US interest rates and concerns of economic slowdown in emerging markets". "1MDB is disappointed that Zeti appears to single out 1MDB for the current weakness of the ringgit. "We take this opportunity to highlight that the value of 1MDB's assets exceeds its debt. Zeti will be aware that 1MDB has consistently met, with no default, its interest service and principal repayment obligations, to both foreign and domestic lenders. "Historically, never once has one company been linked in such a way to the value of the ringgit. We trust that the facts shared by 1MDB and the immediate clarifications issued to date, will provide clarity and assurance to all concerned parties," the firm said. The ringgit has been Asia's worst performing currency of the year, having lost nearly 18% of its value against the dollar. Zeti was speaking at a dialogue on the Malaysian economy, where she was also reported saying that other factors that would aid the ringgit's recovery included the US Federal Reserve's decision on interest rates, a recovery in world commodity and energy prices, and an improvement in China's economy. – September 22, 2015.