16-3-2024 (KUALA LUMPUR) Malaysia’s central bank announced on Saturday its intention to seek clarification from Google after the tech giant allegedly misrepresented the exchange rate of the ringgit against the dollar, thus undervaluing the currency.
The ringgit, which hit a 26-year low last month, has experienced a decline of approximately 2.44% this year. Bank Negara Malaysia (BNM) has emphasized that the currency’s current valuation does not accurately reflect Malaysia’s positive economic fundamentals.
In a statement, BNM highlighted that Google, a subsidiary of Alphabet Inc, had published “inaccurate” exchange rate information on two occasions – on February 6th and again on Friday. BNM expressed concern over this recurring issue and stated its intention to engage with Google to understand how such inaccuracies occurred and what corrective measures would be implemented.
Google has yet to comment on the matter outside of U.S. business hours. The search giant typically disclaims any responsibility for verifying data provided by financial exchanges and content providers, as stated on its website.
According to BNM, Google quoted the ringgit at 4.98 to the dollar on Friday, whereas official data indicated the currency’s weakest level at 4.7075.
On the onshore interbank market, BNM reported the ringgit’s rates at 4.7015 at 9 a.m. and 4.7045 at 5 p.m. For comparison, data from the London Stock Exchange Group (LSEG), widely used by international market participants, quoted a Friday close of 4.7020.
BNM Governor Abdul Rasheed Ghaffour recently reaffirmed the government and central bank’s commitment to taking coordinated actions to boost foreign exchange market liquidity, aiming to ensure stability in the value of the ringgit.
