WASHINGTON: Malaysia’s currency peg undervalues the ringgit and contributes to the country’s large external surpluses, but it is hard to gauge the precise impact of the fixed-exchange rate system, said the International Monetary Fund.
“The sizeable current account surplus could be seen as a substantial undervaluation. However, other indicators suggest that the undervaluation of the ringgit is modest,” the IMF said in an annual review of the Malaysian economy on Monday.
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