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Essay / Bank Negara Malaysia Overview - 710
Bank Negara Malaysia established on 26 January 1959. In accordance with the Central Bank of Malaysia Act 2009, enables Bank Negara Malaysia (BNM) to manage risks more effectively and challenges. in its roles and responsibilities as the central bank of the country as of November 25, 2009. Thus, the mandates of the BNM are clearer and the BNM is equipped with the necessary powers and instruments to carry out these mandates. Furthermore, the law provides a strong governance framework with a high level of accountability and transparency. The primary function of Bank Negara Malaysia is to formulate and conduct monetary policy in Malaysia. Primary BNM provides advanced technical and research support on growth-related issues to improve the formulation of monetary and credit policies to promote monetary stability and ensure the availability of adequate credit to finance growth economic. Price stability is an important factor in maintaining the monetary stability of any country. Furthermore, the inflation rate must be controlled and the purchasing power of ringgit must be maintained at a stable level. Second, BNM was to issue currency in Malaysia. The Banking Ordinance of 1958 authorizes BNM to be the issuer of foreign exchange sales in the country. Therefore, BNM is authorized to issue all legal tender currencies for use in the country. Apart from this, regulate and supervise financial institutions which are subject to the laws enforced by BNM. In other words, BNM promotes the stability of the financial sector through the progressive development of sustainable, strong and sustainable financial institutions in order to become a competitive and resilient national financial sector in the changing future environment. Thus, it also implements policies and strategies regarding computerized settlement, registration and redemption systems. Bank Negara Malaysia's responsibilities have evolved over the years. Nowadays, Bank Negara Malaysia pays more attention to the three pillars of central banking, namely the payment system and monetary and financial stability. Unfortunately, Bank Negara Malaysia also plays a developmental role with respect to economic management and institutional strengthening development. Therefore, Bank Negara Malaysia had to analyze and evaluate the developments in the foreign and domestic economy. Also focus on the areas that need to be conveyed. BNM will undertake economic intelligence, monitoring and forecasting activities on the recent economic situation in the country. Based on the assessments, BNM implements policy recommendations and presents them to the Minister of Finance..