KUALA LUMPUR: The government is not considering any major monetary intervention in foreign exchange rate, nor will the government implement the peg regime as what was done in 1998, in light of the depreciation in Malaysian ringgit, said Deputy Finance Minister Datuk Haji Ahmad bin Haji Maslan.
“As with any system of flexible exchange, fluctuations in the short term is something that might happen, particularly in an uncertain global environment.”
Ahmad said the weakening of the ringgit since September last year was driven by external and domestic factors as other currencies in the region also experienced a decline between one and 12.2 per cent against the US dollar since September 2014 to June 25 this year.
He said the strengthening of the US dollar was due to prospect of an improving economy and the possibility of interest hikes, which in turn, attracted investors to US dollar.
Ahmad said that in response Senator Datuk Chin Su Phin’s who is also Liberal Democratic Party deputy president during asked on the impact to our nation’s economy and income if our national currency continued to fall, as well as the measures taken to ensure the Malaysian ringgit remains competitive at the global level during the questions and answer session in the Dewan Negara sitting here.-Sayangsabah