Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz stated that the government has no plans to peg the ringgit to the US dollar, citing the significant risks and trade-offs involved. He explained that pegging would require Malaysia to align its monetary policy with the US, potentially raising interest rates and imposing high financing costs despite differing economic conditions. A flexible ringgit exchange rate is crucial to absorb external shocks and support economic stability, with Bank Negara Malaysia monitoring the forex market to prevent volatility.
Also available in 'The Borneo Post Sarawak', 'The Edge', 'The Sun'.NO NEED TO PEG RINGGIT TO US DOLLAR
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz stated that the government has no plans to peg the ringgit to the US dollar, citing the significant risks and trade-offs involved. He explained that pegging would require Malaysia to align its monetary policy with the US, potentially raising interest rates and imposing high financing costs despite differing economic conditions. A flexible ringgit exchange rate is crucial to absorb external shocks and support economic stability, with Bank Negara Malaysia monitoring the forex market to prevent volatility.
Also available in 'The Borneo Post Sarawak', 'The Edge', 'The Sun'.
