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Bakar and Nova

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Submitted By noctiskwanxx
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After obtaining independence in 1957, the national currency of Malaysia, the ringgit, had been pegged to the Pound Sterling. Following the dismantlement of the Sterling Area in 1972, the ringgit was pegged to the US dollar. The ringgit was allowed to float in June 1973, and again pegged to a basket of major currencies in September 1975. Since then to the middle of the 1980s, the exchange rate policy of BNM had focused on the stabilization of the exchange rate against the Singapore dollar. After several speculative attacks, the ringgit was allowed to float more against both the Singapore dollar and the US dollar in the end of 1984. The exchange rate system since then can be classified into a managed floating system. This regime had lasted until July 1997, when BNM gave up to sustain the exchange rate in the wake of the Asian Crisis. Since September 2, 1998, the ringgit has been pegged to the US dollar at US$1.00=RM3.8010.
History and development of exchange rate regime in Malaysia
Ringgit Malaysia (RM) or Malaysian Dollar is known as the currency using by Malaysia, formally introduced in 12 June 1967. Prior of this date, Malaysia was under controlled and protected by the British, that time Malaysia are called Malaya and used the Malayan dollar as official currency. Malayan dollar also used by Singapore and Brunei on that period. On 12 June 1967, Ringgit Malaysia officially issued by the new central bank, known as Bank Negara Malaysia, replaced the Malaya and British Broneo dollar at par.

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