# Bank Negara takes steps to increase demand for ringgit | The Star

> Bank Negara Malaysia announced measures to boost demand for the ringgit, requiring exporters to convert 75% of their proceeds into ringgit from Monday. Exporters were also offered a 3.25% special deposit rate as an incentive. The ringgit strengthened offshore after the announcement, and the central bank could gain over US$18 billion in reserves.

- Date: 2016-12-02 · published 2016-12-02T12:00:00.000Z
- Category: policy · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/73727-bank-negara-takes-steps-to-increase-demand-for-ringgit-the-star
- Commodities: [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

A firmer ringgit lowers the local cost of dollar-priced imports such as feed ingredients, and the forced conversion of export proceeds reduces currency volatility for Malaysian buyers.

## Read by commodity

- USDMYR: bearish ▼

## Sources

- thestar.com.my: https://www.thestar.com.my/news/nation/2016/12/03/bank-negara-takes-steps-to-increase-demand-for-ringgit

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.