Malaysia’s decision to scrap its ringgit peg for a managed float system will improve government finances, damp inflation and fuel economic growth, Moody’s Investors Service said.
The ringgit will strengthen “gradually” over the next year or two and the managed float system will probably stay for some time, Moody’s analyst Steven Hess said in an interview in New York yesterday. Malaysia’s debt ratings won’t be affected by the peg change, he said.
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