Malaysia rules out peg

Malaysia rules out peg

SINGAPORE (AFP): Malaysia is not looking at a peg for its
currency but the idea can be explored by other countries, Prime
Minister Mahathir Mohamad said in an interview published here
Saturday.

He reiterated that Malaysia was not planning to seek
International Monetary Fund (IMF) aid as its neighbors Thailand
and Indonesia have done.

Indonesia is planning to introduce a currency board system to
manage a peg for its battered currency, the rupiah, despite
warnings that it may not have enough foreign reserves and the
monetary discipline to sustain it.

Asked whether Malaysia thought a currency board was a solution
for other countries in the region, Mahathir said: "We don't think
it's a solution for Malaysia. We can't say for other countries."

"As far as we can see, that's one of the ideas that can be
examined. Whether it will resolve the problem or not, I wouldn't
be able to say," he told Singapore's Straits Times and Business
Times.