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Ringgit hovers near financial crisis peg as troubles mount

Currency reserves fall US$5b in 2 weeks as Bank Negara protects currency from 1MDB political fallout

Published Thu, Jul 30, 2015 · 09:50 PM

Singapore

PROTECTING the ringgit from political fallout out may end up costing Malaysia more than any bailout for the debt-ridden 1 Malaysia Development Berhad (1MDB) state fund, given the rate at which the central bank has been using its reserves in recent weeks.

Bank Negara Malaysia (BNM) has taken an iron-fisted approach, barely allowing the ringgit to move since early July as investors became increasingly unnerved by the deepening scandal over how 1MDB got into US$11 billion of debt.