Zeti rules out return to 1998 ringgit/USD peg

Bank Negara Governor Zeti Akhtar Aziz has ruled out the ringgit being pegged again to the USD as done in 1998 during the Asian Currency Crisis. Free Malaysia Today Joe Fernandez reports:

“The economic fundamentals are strong,” said Zeti who added that her current term ends next year and that she has no intention of quitting.

“We have moved on, away from capital account controls. The economy was strong and diverse enough to remain afloat despite global uncertainties.”

zetti-usd_600

She was speaking during a press conference to announce the 2nd Quarter GDP figures.

She went on to add, on separate matters, that the central bank had completed its investigation of the trouble-stricken 1MDB, the Ministry of Finance owned company touted as a strategic investment and development company. “We leave the matter to the Attorney- General.”

The central bank was also looking at its legal options following allegations that it was involved in attempts to topple the government.

CIMB Chairman Nazir Abdul Razak, in a related development, expressed concern for the ringgit and the Bursa Saham Malaysia which was headed towards the 1,600 mark. He lamented that political issues were taking centrestage and that there was so much negative international media coverage on the country. “It’s a terrible time.”

“We need an experienced, credible team, the best, to handle the financial and economic crisis facing the country.”

 

Source:  http://www.freemalaysiatoday.com/category/nation/2015/08/13/zeti-rules-out-return-to-1998-ringgitusd-peg/

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