Bank Negara shoots down ringgit re-peg

The central bank said that a move to re-peg the ringgit to the US dollar would force the country to impose capital controls on financial flows.

PETALING JAYA: Bank Negara has once again defended the country’s flexible exchange rate regime, although it acknowledges that a highly volatile exchange rate can be a source of vulnerability for the economy.

In a boxed article accompanying its annual report for 2022, the central bank said that a move to re-peg the ringgit to the US dollar would force the country to impose capital controls on financial flows.