No need to re-peg ringgit: Central bank

Malaysian central bank governor Zeti Akhtar Aziz.
Malaysian central bank governor Zeti Akhtar Aziz.PHOTO: BLOOMBERG

KUALA LUMPUR • Malaysia sees no need to re-peg the ringgit to any other currency or impose capital controls in spite of its fall to 17-year lows, central bank governor Zeti Akhtar Aziz said yesterday.

"I want to emphasise that we do not want to peg the currency," Ms Zeti told reporters. "We've moved on from capital controls."

The ringgit has fallen more than 12 per cent this year, making it the worst-performing emerging Asian currency.

Yesterday, after Malaysia announced stronger-than-expected second-quarter growth, and Ms Zeti's comment that there will be no capital controls, the ringgit briefly strengthened, reaching 3.9945 to the US dollar from 4.000. But later, it slipped to 4.008.

The currency began to weaken in September last year, when global prices of commodities fell. Between then and July this year, the country's foreign-exchange reserves have fallen more than US$35 billion (S$49 billion) to less than US$100 billion.

"The ringgit is receiving additional pressure from declining commodity prices and domestic factors," Ms Zeti said.


A version of this article appeared in the print edition of The Straits Times on August 14, 2015, with the headline 'No need to re-peg ringgit: Central bank'. Print Edition | Subscribe