Currency swap initiative a win

Juwai IQI global chief economist Shan Saeed

PETALING JAYA: The move to undertake a currency swap arrangement by Malaysia is expected to benefit the country in the near term, as it will boost trade and investments at a time when the global economy is undermined by higher inflationary pressures and growing recessionary risks.

When contacted by StarBiz, foreign-exchange (forex) strategists and economists opined that the move could help to lessen upward pressure in short term funding needs in foreign currencies, improve liquidity, avoid market stress and maintain the economic growth trajectory.