Malaysia says will not peg ringgit to dollar or implement capital controls

Malaysia says will not peg ringgit to dollar or implement capital controls
PHOTO: AFP

KUALA LUMPUR - Malaysian Prime Minister Najib Razak said on Thursday that he would not peg the ringgit currency to the U.S. dollar or implement capital controls. "The flexibility of our exchange rate is important to absorb global adjustments and volatility," he said in a statement.

Separately, Malaysian central bank Governor Zeti Akhtar Aziz said foreign exchange reserves had fallen but it was not a cause for worry.

"We've seen it decrease before and there's no issue to be concerned because that's what the reserves are there for, to represent a buffer to adjust during such periods," she told reporters.

Malaysia's international reserves fell below the US$100 billion (S$140.5 billion) mark as of July 31, boosting doubts over abilities to defend the worst-performing Asian currency so far this year.

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