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Thursday July 21, 2005

Malaysia scraps ringgit's peg to dollar, moves to a managed float


News Update by The Star Newsdesk 

KUALA LUMPUR: Malaysia has scrapped the ringgit currency’s seven-year-old peg to the dollar and will move to a managed float, pegged to a basket of currencies, with immediate effect, said Bank Negara governor Datuk Zeti Aziz.  

“We will be pegged to a currency basket. It will have a positive effect on the economy. 

“We will allow the currency to reflect our fundamentals. It will remain not too far from the current value because it already reflects our fundamentals,” she added. 

Zeti had showed up at PWTC to meet Prime Minister Datuk Seri Abdullah Ahmad after the closing of the first day of the general assembly. 

The move by Malaysia follows China’s decision to re-peg the yuan to the US dollar from 8.28 to 8.11.  

 

Useful links:

  • Press statement by Bank Negara Malaysia
  • China severs currency link to dollar - AP 

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