Putrajaya has no plans to peg ringgit, says minister

Putrajaya will not peg the ringgit against the US dollar despite its continuous depreciation. – The Malaysian Insider file pic, August 8, 2015. 

Putrajaya has no plans to peg the ringgit against the US dollar to address its depreciation, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

He said Putrajaya expected the ringgit would stabilise given that Malaysia's economic fundamentals remained strong.

"I think the (ringgit) will stabilise based on all our studies," he told a press conference after officiating the Tanjong Karang Umno division delegates conference today.

Husni was commenting on calls by certain quarters for the ringgit to be pegged to address its plunge in value as oil prices tumbled to below US$50 (RM196) a barrel.

He said the movement that was seen in oil prices mainly came from the dollar's strength which also affected regional currencies like the Singaporean dollar and Indonesian rupiah.

On 1Malaysia Development Bhd, Husni said the strategic fund's rationalisation plan was progressing well and that its current cash-flow problem was expected to be resolved by year-end.

"Let's focus on the rationalisation plan, and look at the interests of the nation. We want 1MDB (to be) very healthy," he added. – Bernama