“The central bank is a solid institution that was established to serve the people,” she said when met at Menara Ilham today after attending the Council of Eminent Persons meeting here, today.

Zeti, a member of the council, however, refused to comment further on Muhammad’s resignation.

Dr Mahathir Mohamad today confirmed that Muhammad has submitted his resignation, just two years after he was appointed.

The prime minister said the government was now waiting for the palace to approve a candidate to replace Muhammad.

“We need to get the Agong’s approval before we can announce (his successor),” he said, adding that he would meet with the king to appoint the new governor “as soon as possible”.

Yesterday, it was reported that Muhammad had offered to resign from his post, while the government was discussing his exit terms.

Muhammad, a career banker, took over from Zeti in May 2016.

His resignation followed Finance Minister Lim Guan Eng’s revelation last month that funds from a land sale made by the government to the central bank for about RM2 billion had been used to pay for 1MDB’s obligation to Abu Dhabi state fund IPIC.

BNM had said the transaction complied with government requirements and that it had handed details of the deal to the anti-graft agency.

But Mahathir today said there was no mention of the land deals when Muhammad tendered his resignation.