Pegging the ringgit not in Malaysia's best interest: BNM Governor

Bank Negara governor Tan Sri Nor Shamsiah Mohd Yunus

KUALA LUMPUR: 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, Bank Negara Malaysia (BNM) Governor Tan Sri Nor Shamsiah Mohd Yunus said.

She said maintaining a peg would be a very costly policy as it took up a sizeable amount of reserves, especially in the last decade, and this ultimately would weaken Malaysia’s external resilience.