Zeti Opens Up On Rumours About Her Resignation, 1MDB Probe, And Re-pegging The Ringgit
Bank Negara Malaysia Governor Zeti Akhtar Aziz broke her silence on several rumours.
By Sadho Ram — 13 Aug 2015, 07:27 PM
Zeti Akhtar Aziz, who according to rumours that the Bank Negara Malaysia Governor has been under pressure to resign due to her and BNM's part in the special task force investigating the alleged RM2.6 billion money trail linked to 1MDB and PM Najib, finally broke her silence today, dismissing all speculations about her resignation
The first woman Governer of Malaysia's Central Bank told reporters she intends to see out her 5-year term, which ends in April 2016
Speaking at a press briefing at the BNM Headquarters in KL today, 13 August, Zeti said: "I certainly will remain in office until my term ends. It's a five-year term and my term ends in April next year."
Rumours about her impending resignation surfaced right after former Attorney-General Abdul Gani Patail was abruptly replaced on 28 July, months before his term was supposed to end this year.
On rumours that she had been taken ill, Zeti said: "My heart is very strong and my doctors say my arteries are clear. I only had a cough before my trip to the United States. When the rumours came out, I was giving a luncheon address. I have taken no medication," she quipped.
The Asia crisis veteran, who would have served BNM and Malaysia for 35 years by 2016, also said she won't be staying in her position if her term was extended, saying that she already had other plans
"I said I would like to write a book in my retirement. I’ve already been in office for 16 years and I have done whatever I needed to do. This will be part of my story later. BNM is a solid institution, therefore it will go on and rise to greater heights."
therakyatpost.com
Zeti also warned that she will seek out and sue those spreading rumours about her and BNM over issues surrounding 1MDB. However, when asked about the RM2.6 billion money that was deposited into Prime Minister Najib's personal bank accounts, she said that she could only speak within the confines of the law.
“I have to be very careful of what I say,” she said. “It has to be within the confines of the law; otherwise, the moment I step outside of this door, I will face arrest.” She affected a lighthearted tone in making the remark.
Asked about Bank Negara's position on such a large amount being deposited into an individual's account, she said; "the financial institution is supposed to conduct due diligence, and if everything is in order, they will not inform us.
"If they find something suspicious, they will have to submit a Suspicious Transaction Report (STR) to Bank Negara and we will then be aware of it," she said.
Zeti reacted sternly to allegations made in an anonymous blog that she was guilty of “activities that are detrimental to parliamentary democracy.”
Meanwhile, at the same function, she announced that Malaysia's economy expanded by 4.9 percent in the second quarter of 2015
"The global economy expanded at a moderate pace in the second quarter of 2015. Growth in most Asian economies moderated in the second quarter. Domestic demand continued to support growth in an environment of weak exports," she said at a press conference today.
Bank Negara also predicts that domestic demand will continue to be the key driver of the Malaysian economy growth.
"Private consumption is expected to continue to adjust to the introduction of the Goods and Services Tax (GST), although wage growth and stable labour market conditions would provide support to household spending," she said.
However, Zeti said inflation had increased to 2.2 per cent in the second quarter of 2015 with the impact of GST implementation.
On the need to peg the ringgit, which has fallen 12.32 percent in 2015, making it one of the worst performing Asian currencies, Zeti said there's no need. "We've moved on from capital controls."
However, it should be noted that back in June, Dr. Mahathir had suggested that re-pegging the ringgit is one way to stabilise it.
The former prime minister was also of the opinion that instead of pegging it against the greenback or other major currencies, authorities should consider going back to the gold standard.
The gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold.