Malaysian central bank governor resigns, successor being decided

KUALA LUMPUR – On Wednesday, June 6, 2018, Malaysian Prime Minister, Mahathir Mohamad said that he has accepted the resignation of central bank governor Muhammad Ibrahim.

Mahathir referring to the king said, “We have not decided on his successor because we need to have the approval of the Agong before we can announce” he also added that the government would meet the king as soon as possible to discuss the succession.

Muhammad, Harvard University graduate, appointed as governor in May 2016.  he joined the bank in 1984, also became the deputy governor in 2010. His resignation comes after Finance Minister Lim Guan Eng said, last month that the funds from a land sale made by the government to the central bank for about 2 billion ringgits ($502.51 million), which were used to pay the liabilities of beleaguered state fund 1Malaysia Development Berhad (1MDB).

Muhammad had protested the decision for the purchase of the plot of land, replying that the transaction complied with government requirements.

On Tuesday Two sources submitted that former deputy central bank governor, Nor Shamsiah Mohd Yunus, left the bank after her term ended in November 2016, was among one of the candidates being considered.

Bank’s Image

As per the Rating agency Moody,’ the smooth operation of the policy could be enhanced if a central bank governor would be appointed without losing time.

“The governor’s resignation would also be credit negative if it dampens foreign investor sentiment and leads to capital outflows for a protracted period of time,” – said analyst Anushka Shah in an email statement.

On Wednesday Muhammad lets go as “totally untrue” the concept that the land dead was targeted to hit the misappropriation funds via IMDB.

“I am prepared to relinquish my post if I no longer have the strong trust and support of the public,” – reads a message that went viral.

by Sawan Kumar on June 6, 2018

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