Bank Negara Malaysia
An Introduction to the Bank Negara MalaysiaBank Negara Malaysia is in fact the Central Bank of Malaysia, a financial organization responsible for issuing as well as retaining the stability of the national currency. In addition, Bank Negara Malaysia also provides finances and advise to the Government on issues related with national economy.
Bank Negara Malaysia functions with the financial prosperity of Malaysia as its main objective and therefore essentially it is a not-for-profit bank.
Objectives and Functions of the Bank Negara Malaysia
The Bank Negara Malaysia was founded in the year 1959, as per the 1958 Central Bank of Malaya Ordinance. Based in the capital of Malaysia, Kuala Lumpur, Bank Negara Malaysia is aimed at maintaining the value (rather the exchange rate) of the Ringgit which is the national currency of Malaysia through the conservation of the reserves of foreign exchange and gold. In this respect, Bank Negara Malaysia may be said to be successful, as Malaysia with over USD82 Billions as reserves ranks as high as twelfth (12th) in the world.
Bank Negara Malaysia which was established with the objective of furthering the cause of stability in terms of money and a strong national economic structure, has in fact worked efficiently in recovering the national economy, to a large extent, from the adverse economic effects of the Asian Financial Crisis of 1997, and since then the Ringgit has appreciated considerably from the slump.
The payment and settlement systems of Malaysia are operated by the Bank Negara Malaysia in a transparent and effective manner so that it works to the advantage of the national economy in addition to being reliable to the common people of the nation. The Bank Negara Malaysia also ensures the unhindered functioning of the payment and settlement systems of Malaysia.
The Bank Negara Malaysia works towards improving the credit scenario of Malaysia so that the value of the Ringgit appreciates and the economy of Malaysia improves.