Pegging ringgit not in Malaysia’s best interest, says Bank Negara

Bank Negara Malaysia governor Nor Shamsiah Mohd Yunus says pegging the ringgit will have detrimental effects on investors’ sentiment, affecting not only foreign direct investment into Malaysia but also causing capital outflows from Malaysia. – The Malaysian Insight file pic, May 13, 2022.

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. 

Effective July 2018, access to full reports will only be available with a subscription. Sign-up now and enjoy one (1) week free access!

Subscribe Now!

Sign up or sign in here to comment.