Ringgit peg not in M'sia's best interest - Bank Negara governor
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, said Bank Negara Malaysia (BNM) Governor Nor Shamsiah Mohd Yunus.
Speaking at the press conference today, Nor Sahmsiah (above) said maintaining a peg would be a very costly policy as it takes up a sizeable amount of reserves, especially in the last decade, and this ultimately would weaken Malaysia’s external resilience.
“A peg would have detrimental effect on investors’ sentiment, affecting not only foreign direct investment into Malaysia but also leads to capital outflows from Malaysia,” she told reporters after announcing Malaysia's Gross Domestic Product (GDP) numbers for the first quarter of 2022.
The fact is the Malaysian ringgit is being pummeled against all major currencies.
ReplyDeleteProblems with economic amd governance fundamentals, artificial pegging will not solve any real issues.