Ringgit won't be repegged

Ringgit won't be repegged

KUALA LUMPUR (Dow Jones): Malaysia has no intention of altering the ringgit's peg to the dollar and the country will remain competitive with this exchange rate, Finance Minister Daim Zainuddin told finance ministers of the Association of Southeast Asian Nations Saturday, a Malaysian official who declined to be identified said.

The ringgit peg will remain in place based on the country's fundamentals and to ensure certainty and predictability, Daim said, according to the official.

Malaysia is confident its exports will remain competitive, Daim added. Daim pointed to China, which hasn't revalued its currency, despite the fact that many currencies in the region have weakened against the dollar.

Aggregate trade accounts for more than 80 percent of gross domestic product in most Asian countries. More than 50 percent of Malaysian exports are comprised of electrical and electronic goods, and manufacturers are feeling the pinch of slowing global demand.