The Malaysian Ringgit’s decline extended to the lowest since the Asian financial crisis, yet the central bank said it doesn’t reflect the “positive prospects” of the country’s economy.

The currency edged down 0.3% to 4.7992 against the Dollar on Tuesday, its weakest since a record low of 4.8850 in 1998, as China’s slow-moving economy impacted exports from Malaysia

So far this year the Ringgit has declined by more than 4%, adding to losses from the previous three years, Yahoo Finance reports.

“BNM (Bank Negara Malaysia) is of the view that the current level of the Ringgit does not reflect the positive prospects of the Malaysian economy going forward,” Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said in a statement on Tuesday.

In the three months through December, Malaysia’s economy expanded slower than forecast as exports to China declined.

Manufacturing activity was weak, with the Purchasing Managers’ Index for January coming in at 49.0, the 17th consecutive month under the 50-mark.

The country’s growth trajectory for this year is still laden with risk at home and overseas, the Yahoo Finance report adds, whilst foreign bond outflows totalling $382 million in January – a five-month high – also reduce support for the Ringgit.

However, Malaysia’s export growth increased by 8.7% year-on-year, bringing an end to 10 months of contraction. Trader focus is now on the latest inflation reading due on Friday for indications on the central bank’s ability to maintain interest rates.

Furthermore, whether the Ringgit will drop to a record low against the Dollar is reliant on the trajectory of the world’s reserve currency.

While the Ringgit is likely to continue falling to under 4.80 in the near term, doubts remain that it will break its record low as the strength of the US dollar is forecasted to weaken.