To Peg or Not to Peg?

Summary


ONE OF THE hottest topics in corporate Malaysia today is whether the

ringgit's peg to the United States dollar (at a rate of RM3.80 to US$1)

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Extract


To Peg or Not to Peg?

should be reassessed. And it's been a long debate.

Since as far back as four years ago, many quarters have been prodding

the government to remove the peg. The peg was, after all, a temporary

measure installed in 1998 to provide a more stable operating environment

for Malaysian companies which were badly shaken by the 1997/98 Asian

financial crisis.

The debate seems to be gaining momentum as the US dollar has been

depreciating ...

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