Malaysia’s Ringgit Gets a Boost Thanks to PM Mahathir
Prime Minister’s Sweet Spot: 3.8
Prime Minister Mahathir Mohamad just dropped a slash of ‘fair‑value’ wisdom on the rodoric Ringgit today, declaring it ought to wobble around 3.8 per US dollar – a tidy 5 % uptick over where it sits at the moment, as Bloomberg quoted him.
The headline also noted the ringgit nudged up 0.4 % to 3.997 on the US dollar, a ripple fueled by his words and the latest appointment of former deputy central bank governor Nor Shamsiah Mohd Yunus as the new head of Bank Negara Malaysia.
Why 3.8? A Dash From the Past
In 1998, during the Asian financial maelstrom, Mahathir fixed the ringgit at 3.8, a move many credit with sidestepping the worst of the crisis. That peg held until 2005, and many say it was a saviour for Malaysia.
Now, at 20 years on, he’s nudging us back toward that same sweet spot.
“Strengthen Naturally, Folks”
“We want the ringgit stronger, but only if it follows natural market forces,” Mahathir told Bloomberg.
He added a broader twist: the current valuation isn’t just about Malaysian policy; global economics have a hand in it too.
Market Sentiment
After last month’s surprising coalition win in the elections, traders have been wiggling in their seats, keeping a close eye on Malaysia’s fiscal moves.
So far, the ringgit has strengthened a modest 1 % this year, riding on a near‑10 % surge from last year.
Keep your ears open – the ringgit’s trajectory is a story worth cracking.
