Malaysia against fixed rate

Malaysia against fixed rate

SHAH ALAM, Malaysia (AFP): Finance Minister Anwar Ibrahim said
yesterday that Malaysia would not consider adopting a currency
board system such as that being planned by Indonesia.

"For Malaysia, there has not been any call," Anwar told
reporters attending the opening of an Ericsson plant west of
Kuala Lumpur.

"There is no need," he added. "The ringgit in the last few
weeks has been strengthening. We have taken all adequate measures
such as the imposition of credit plans and therefore it does not
warrant us to consider a new system."

The remarks by Anwar, who returned Thursday from a five-day
visit to Japan and Taiwan, echoed comments by Prime Minister
Mahathir Mohamad.

Under a currency board system such as that used in Hong Kong,
the local currency is backed by its equivalent in foreign
reserves at a pre-set rate.