“We should not panic,” he said.
“We have the ecosystem to make it right, ensure political stability remains intact and (continuously) apply the right policies to facilitate investors,” he said when asked about the ringgit’s decline to 4.4805 per US dollar earlier today.
There was no need for capital controls or to peg the ringgit as Malaysia was an open economy, he told reporters after witnessing the signing of strategic agreements between Amanah Raya Bhd and Kenedix Inc of Japan.
He said with all key factors in place, the ringgit would bounce back.
Asked about the fair value for the local currency, he said: “It depends at what point you come in. If you come at the 3.30-level, you would want the ringgit to be at 3.30. If you come at 3.80-level, you want it to be at that level”.
The ringgit and other emerging currencies declined against the US dollar following the US Federal Reserve’s interest rate hike on Wednesday last week.
It had hinted of more rate hikes in 2017.
Johari said the number of interest rate increases by the US depended on President-elect Donald Trump’s policy, and Malaysia would have to wait and see.
“At the end of the day, currency fluctuation is part of the mechanism, and you need to adjust according to supply and demand,” he added.