On Saturday, Malaysia’s central bank issued a statement, accusing Google of misquoting the exchange rate of the ringgit against the dollar, thereby undervaluing the currency. Bank Negara Malaysia (BNM) stated its intention to seek clarification from the tech giant regarding this matter.
The ringgit, which recently hit a 26-year low, has experienced a decline of approximately 2.44% this year. Despite Malaysia’s positive economic fundamentals, BNM has emphasized that the currency is undervalued.
According to BNM, Google’s parent company, Alphabet Inc., published “inaccurate” information on Friday, as well as on Feb. 6. Concerned about the recurrence of this issue, BNM announced its intention to engage with Google to understand how these inaccuracies occurred and what corrective actions have been implemented.
Google, however, was not immediately available for comment during U.S. business hours. The company’s disclaimers state that it does not verify data provided by financial exchanges and other content providers, thus absolving itself of any responsibility to do so.
BNM highlighted that on Friday, Google quoted the ringgit at 4.98 to the dollar, whereas official data indicated the currency’s weakest level at 4.7075. In contrast, BNM’s onshore interbank market rates were 4.7015 at 9 a.m. and 4.7045 at 5 p.m. Additionally, international market participants reportedly quoted a Friday close of 4.7020 based on LSEG data.
Last week, BNM Governor Abdul Rasheed Ghaffour emphasized the government and central bank’s concerted efforts to boost flows into the foreign exchange market to maintain stability in the ringgit’s value.
