No plans to peg ringgit, says minister
Published on: Tuesday, March 19, 2024
By: FMT
Second finance minister Amir Hamzah Azizan says there is no need to react hastily over the ringgit’s performance.
PETALING JAYA: The government has no plans to peg the ringgit at this time, second finance minister Amir Hamzah Azizan said in the Dewan Negara today.
Adding that the economic conditions in 1998 were different from the current situation, he said that in 1998, the stock market had plunged by 76% compared to a 6% rise since the start of this year, Bernama reported.
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Amir also said foreign debt in 1998 was more than 16% of Malaysia’s gross domestic product, but that it is currently between 1% and 2%.
He added that Bank Negara Malaysia’s reserves of US$114 billion are much healthier than they were in 1998.
“There is no need for us to react hastily. The government is indeed sensitive to the issue of the ringgit and will strive to address it,” he said during a question-and-answer session.
Amir said analysts had also said the ringgit would stabilise this year, possibly at RM4.50 to the US dollar.
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“Under the Madani economy framework, we believe the ringgit will perform better in the future,” he said, in reply to a supplementary question from Senator Fatmi Che Salleh, who asked if the government was planning to peg the ringgit to safeguard the country’s assets.
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