PEGGING the ringgit will not be in the best interest of Malaysia as it will have substantial risks, one of which is mirroring the monetary policy of the country that the local currency is pegged against, Bank Negara Malaysia governor Nor Shamsiah Mohd Yunus said.
She said maintaining a peg will be very costly as it takes up a sizeable amount of reserves, like in the last decade, and this ultimately will weaken Malaysia’s external resilience.
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