Malaysia govt has no plans to peg the ringgit

Malaysia govt has no plans to peg the ringgit
PHOTO: AFP

KUALA LUMPUR - The Government has no plans to peg the ringgit currency like how it was done during the 1997 economic crisis, Parliament was told.

In a written reply to Lim Guan Eng (DAP-Bagan), the Finance Ministry said this was because the current economic climate is different from the past.

"The current situation is influenced by the global development, like how the neighbouring countries are going through," it said on Tuesday.

The ministry said the increase or decrease of the currency in the short term could occur in any flexible exchange rate system, especially in economic uncertainties.

And this is where the Bank Negara Malaysia (BNM)'s played its role to ensure the exchange market is stable to avoid any fluctuation, it added.

"It is important because Malaysia is an open economy with high international trading and investment activities," said the ministry.

It also said that Malaysia's international reserves recorded at RM392.4bil as of April 30, compared to RM389.7bil at the end of March.

"Based on the latest development, the ringgit performance is recovering and becoming more stable," it said, adding that it has shown the best performance among other regional currencies since April.

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