KUALA LUMPUR: The ringgit, which fell to more than a three-year low on March 2, is reflective of the current global economic situation, said Bank Negara  governor Tan Sri Zeti Akhtar Aziz.

"It reflects the global phenomenon. It reflects the strength of the US dollar following deleveraging that is taking place and remitting of funds to the US dollar, and it's not unique to Malaysia.

“It happens to other currencies all over the world," she told reporters after officially launching Public Islamic Bank Bhd here on March 3.

Zeti noted that the depreciation of ringgit took place in an orderly market.

"At this stage, we believe that so long as the market remains orderly, that is what is important," she said.

The ringgit was quoted at RM3.7060 to the US dollar at midday, off the early low of RM3.7115.

Earlier in her speech, Zeti said delays in the resolution to the financial crisis in the advanced economies had resulted in a sharp and rapid deterioration in recent months.

"The inability to stabilise conditions is highly likely to have a more protracted effect on the global economy. While there has been concerted monetary policy action and fiscal stimulus across the globe, confidence needs to be restored," she said.

"This can, however, only happen when the financial system in the crisis affected countries are repaired and credit continues to flow again, when markets continue to function efficiently and when prices reflect the value of the assets," she added.

Meanwhile, Public Bank Bhd founder and chairman Tan Sri Teh Hong Piow said its newly launched Public Islamic Bank would remain focused on its niche markets of consumer and retail commercial financing, SME financing and deposit-taking business going forward.

Public Islamic Bank was established in November 2008. Prior to that, the banking group ran its Islamic banking business in "window" concept.

In the last five years, its Islamic banking assets grew at a compounded annual growth rate of about 20%.

Currently, Public Islamic Bank has total assets of RM16.5 billion, representing 8.4% of the total assets of the Public Bank group.

As at end-2008, the bank's Islamic financing of RM12.4 billion made up 10.3% of the group's total loans, while Islamic deposits amounted to RM13.8 billion.