The fall of the Ringgit is not tied to the performance of 1MDB, the state fund said on Tuesday (Sep 22), addressing statements made publicly by the head of Malaysia's central bank a day earlier.
"All issues pertaining to 1MDB should be resolved. It is only then we can see the ringgit rebound," Dr Zeti Akhtar Aziz, the Governor of Bank Negara Malaysia, was quoted as saying at a forum on “The state of the Malaysian Economy and Investment" in Kuala Lumpur on Monday.
1MDB argued that the Ringgit is one of many currencies worldwide to have been hit by various factors, including slumping oil prices, and that the state fund - embroiled in investigations amid allegations of graft and poor financial management - cannot be held responsible for the Malaysian currency's decline.
"Historically, never once has one company been linked in such a way to the value of the Ringgit," said 1MDB in a statement released to the media on Tuesday morning.
In the media release, which bore the headline "1MDB confident Ringgit will recover", the state fund said: "1MDB is disappointed that Dr Zeti appears to single out 1MDB for the current weakness of the Ringgit.
"This is despite the well-known fact that the Malaysian Ringgit is one of many currencies including the Norwegian Kroner, the Australian Dollar, the Russian Rouble and the Brazillian Real, for example, that have dropped in value mainly due to the abrupt fall in oil prices, expectations of rising US interest rates and concerns of economic slowdown in emerging markets.
"We take this opportunity to highlight that the value of 1MDB's assets exceeds its debt. Furthermore, Dr Zeti will be aware that 1MDB has consistently met, with no default, its interest service and principal repayment obligations, to both foreign and domestic lenders."
"THE PUBLIC WANTS ANSWERS"
The fund has been dogged by controversy over its US$11 billion debt and alleged financial mismanagement.
The Wall Street Journal reported in July that investigators looking into 1MDB had found that nearly US$700 million was transferred into the personal bank account of Prime Minister Najib Razak. who chairs its advisory board.
The prime minister has denied taking money from 1MDB or anywhere else for personal gain, while Malaysia's anti-graft agency declared the funds a donation.
On Monday, Dr Zeti said "the public wants answers" on the use of funds at 1MDB.
Said the state bank governor: "They deserve to get the answers ... We know there are on-going investigations, we also need to know who is doing what in this day and age. There is no place in this planet that anyone can hide in because the world has come together to track down any irregular activities."
In the media statement on Tuesday, 1MDB said all the facts on the matter were out in the open for anyone to scrutinise.
"We trust that the facts shared by 1MDB and the immediate clarifications issued to date, will provide clarity and assurance to all concerned parties," the state fund said.