Originally, this name refers to the Spanish silver coins with their sharp edges which were in wide circulation in Malaysia in the past. The modern Ringgit was issued in , but was originally given the name Malaysian Dollar in English; the name Ringgit was the Malaysian-language name for the monetary units. Unofficially, the Malaysian Ringgit is still known as the Malaysian Dollar, and is made up of Sen.
Its Forex code is MYR. The Malaysian Ringgit is one of the stronger currencies on the Asian continent. Malaysia is a rapidly developing country which is now experiencing industrialisation. Its currency plays a key role in its development, since it has been strong for some time, and the Malaysian central bank, the Bank Negara Malaysia, has a policy of keeping the exchange rate of the Ringgit down instead of supporting it.
Originally, the Malaysian Ringgit was pegged to the US Dollar; however, over time the peg was removed, only to be reinstated in as Asia suffered a financial crisis. Today, that peg to the US Dollar has once again been removed, and the currency now floats against many major world currencies.
The Malaysian Ringgit was a free-floating currency for a 2-year period between and ; however, after the financial crisis in East Asia in , the Bank Negara Malaysia took the decision to peg the currency to the US Dollar in , although this situation came to an end in , leaving the Ringgit to operate within a managed float against a number of major world currencies.
The Bank Negara Malaysia often intervenes in the the financial market in order to maintain the trading-level stability of the Malaysian Ringgit, and has designated the currency to be non-tradeable outside the country. The economy of Malaysia is on the rise, and is developing in industrialisation. Malaysia also exports large amounts of palm oil products, exporting the second greatest volume after Indonesia.
Malaysia has many natural resources, especially in the minerals, forestry and agricultural sectors. Although the Malaysian government is introducing policies to increase the amount of income per capita to speed up the process towards making the country a high-income one by , the growth within the country of wages and labour productivity is still slow.
As central government revenues are highly dependent upon oil exports, the currency has seen volatile fluctuations, especially during the collapse of oil prices during There are a number of factors known to have an impact on the Forex value of the Malaysian Ringgit. These include the following:. Was the information useful? Get the latest Forex updates now! Receive the latest Forex broker reviews and offers Learn more about trading Forex through our academy section Start trading with a demo account and teach yourself to be a trader No thanks, maybe later.More...